Dana Gas reported a 47 per cent increase in first-half net profit to Dh393 million, supported by higher hydrocarbon prices, rising production in Egypt and stronger gas sales from Pearl Petroleum.
Net profit increased from Dh270 million in the same period last year. The reported figure included a one-off Dh176 million gas metering reconciliation recognised in the first quarter. Excluding that item, net profit stood at Dh217 million.
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Revenue for the six months ended June 30 rose 51 per cent to Dh946 million, from Dh627 million a year earlier. Excluding the one-off reconciliation, revenue increased by Dh143 million, or about 23 per cent, mainly due to higher realised hydrocarbon prices, increased production in Egypt and higher sales gas volumes at Pearl Petroleum.
Second-quarter net profit rose 10 per cent to Dh123 million, from Dh112 million a year earlier.
Egypt production grows 7%
Dana Gas said production in Egypt increased for a second consecutive quarter, supported by its investment programme and continued drilling activity.
The company drilled three new wells and re-completed another during the first half. One well identified an estimated 10 billion cubic feet of gas resources, compared with an original estimate of 3 billion cubic feet.
The discovery could support a further 12 billion cubic feet of future gas resources across the licence area once developed. Dana Gas plans to drill four additional wells before the end of 2026.
Egypt production averaged 13,300 barrels of oil equivalent per day, up 7 per cent from 12,450 boepd a year earlier.
Group production averaged 52,900 boepd, broadly unchanged from 52,750 boepd in the first half of 2025, as growth in Egypt offset intermittent operations in the Kurdistan Region of Iraq.
Richard Hall, Chief Executive Officer of Dana Gas, said the results demonstrated the resilience of the business.
He said the company had increased production and delivered higher profit despite regional disruption affecting utilisation of expanded processing capacity in the KRI.
Khor Mor supports new Iraq gas supplies
Khor Mor began the year at record production levels, with output exceeding 700 million standard cubic feet per day, while group production reached 70,000 boepd at the start of the year.
Regional disruption later led to intermittent suspensions and reduced operations, limiting utilisation of the KM250 expansion during parts of the reporting period.
Following the reporting period, gas supplies began from Khor Mor to Iraq’s Ministry of Electricity. Under the agreement, 100 million standard cubic feet per day will be supplied to the Kirkuk Taza power station for an initial one-year term.
Dana Gas said the additional capacity created by the KM250 expansion would support wider gas sales in Iraq and contribute to electricity generation.
Cash balance rises to Dh843 million
The company’s consolidated cash balance increased to Dh843 million at the end of June, from Dh638 million a year earlier.
Total collections reached Dh616 million, including Dh381 million from the KRI and Dh235 million from Egypt.
Dana Gas also fully drew a Dh275 million bank facility secured earlier in the year, strengthening available liquidity and financial flexibility.
During the period, the company completed payment of its 2025 dividend of 6.5 fils per share, representing a total cash distribution of Dh455 million to shareholders.
Source: Khaleej Times