Dana Gas lifts nine-month profit 48% to $152 million on higher output

Summary

• Dana Gas reported $152 million in net profit for the first nine months of 2026, up 48%.
• Earnings included a one-off $48 million gas metering reconciliation booked in the first quarter.
• Growth rests on expanded Khor Mor capacity in Kurdistan and continued drilling gains in Egypt.

The latest

Dana Gas posted a net profit of AED558 million, or $152 million, for the first nine months of 2026, against AED379 million ($103 million) a year earlier. The company, described as the Middle East's largest regional private sector natural gas producer, attributed the 48% gain to higher production volumes and stronger realised hydrocarbon prices across its Kurdistan and Egyptian operations.

Details

• The headline number: Nine-month net profit reached AED558 million ($152 million), compared with AED379 million ($103 million) a year earlier, according to the company's results statement. The 48% increase was driven by higher output and an improved oil price environment that lifted realised prices across the portfolio.
• The one-off item: The figure includes a positive gas metering reconciliation of AED176 million ($48 million), recognised in the first quarter of 2026. Stripping it out, net profit was AED382 million ($104 million) — effectively flat against the AED379 million ($103 million) reported a year earlier.
• Third quarter: Quarterly net profit rose 50% year-on-year to AED165 million ($45 million), up from AED109 million ($30 million) in the third quarter of 2025. Quarterly revenue reached AED436 million ($119 million), a 42% increase on AED308 million ($84 million).
• Revenue: Nine-month revenue climbed 48% to AED1.38 billion ($377 million) from AED935 million ($255 million). Excluding the first-quarter metering adjustment, revenue rose $74 million, or 29%, on higher production and gas sales volumes in both the Kurdistan Region of Iraq and Egypt.
• Margins: EBITDA increased 61% to AED917 million ($250 million), against AED570 million ($155 million) a year earlier. The company linked the gain to improved operational performance alongside the stronger prices it realised on hydrocarbon sales during the period.
• Kurdistan operations: Higher utilisation of the KM250 expansion at the Khor Mor field lifted production during the third quarter, the company said. It added that the expanded facilities carry further growth potential as utilisation rises, with the Chemchemal field progressing as the next major development project.
• Egypt: The Egyptian drilling programme continued to deliver production growth and added gas resources, according to the company. No figures were given for Egypt's contribution to group output or revenue, nor a schedule for the next phase of the drilling campaign.
• Receivables: Chief Executive Richard Hall said group production rose 17% and net profit 50% in the third quarter, and that Dana Gas "continues to engage constructively" with the Kurdistan Region to improve collections and reduce outstanding receivables. The company did not disclose the value of those receivables.

Background

Dana Gas operates producing assets in the Kurdistan Region of Iraq, centred on the Khor Mor gas field, and in Egypt's Nile Delta. Payment collection from Kurdish authorities has been a recurring issue for international operators in the region.

Between the lines

The underlying picture is flatter than the headline. With the $48 million metering reconciliation removed, nine-month net profit was $104 million against $103 million a year earlier — essentially unchanged, even as revenue grew 29% on the same adjusted basis. That gap suggests cost growth absorbed much of the volume and price gains, leaving the quarterly figures, where profit rose 50% without a one-off, as the cleaner read on momentum.

What's next

Watch utilisation rates at the expanded Khor Mor facilities, progress toward a final decision on the Chemchemal development, and any disclosure of the outstanding Kurdistan receivables balance in the company's full-year 2026 results.

Source: Gulf Daily News / TradeArabia