Dana Gas Soars: Q3 Profit Jumps 50% on Surge in Kurdistan Gas Output and Higher Prices

Dana Gas has announced a significant 50 percent increase in its third-quarter profit, driven by enhanced production from its key gasfield in Iraq's Kurdistan region and bolstered by stronger hydrocarbon prices. Despite facing security disruptions, the Sharjah-based company reported that net profit climbed to $45 million for the three months ending September, a notable rise from $30 million in the same period last year. Revenue experienced a substantial 42 percent jump, reaching $119 million.

"Higher production at Khor Mor and stronger realised hydrocarbon prices have driven improved earnings, demonstrating the tangible returns from our investments," stated chief executive Richard Hall. For the first nine months of the year, profit saw a 48 percent increase, totaling $152 million. However, this figure includes a one-off $48 million gain resulting from a gas metering reconciliation with the Kurdistan Regional Government, according to Abu Dhabi-listed Dana Gas. Excluding this adjustment, profit remained largely stable at $104 million.

Challenges persist regarding payments, as Kurdistan trade receivables escalated to $189 million by the close of September, up from $80 million at the end of 2025. Auditor Ernst & Young highlighted uncertainty surrounding the recovery of the reconciliation receivable, though it did not qualify its review.

Dana Gas is actively involved in producing natural gas and associated liquids in both the Kurdistan region and Egypt, with the former contributing the majority of its production and revenue. The company also possesses gas-related assets in the UAE. Its involvement in the Kurdistan region began in 2007, in partnership with Crescent Petroleum, through an agreement with the KRG to develop the Khor Mor and Chemchemal gasfields. Both UAE companies hold a 35 percent stake in the Pearl Petroleum consortium, which manages these fields, alongside OMV, MOL, and RWE. The Khor Mor field is crucial for the region's power supply, generating approximately 80 percent of Iraqi Kurdistan's electricity.

Dana Gas's share of Kurdistan production increased by 18 percent to 47,550 barrels of oil equivalent (boe) per day during the quarter, contributing to a 17 percent rise in group output to 61,400 boe per day. The $1.1 billion KM250 expansion, finalized in October 2025, boosted Khor Mor's gas processing capacity by 50 percent to 750 million standard cubic feet per day.

These advancements were achieved despite two significant interruptions to production earlier in the year. Operations were halted on February 28 following the outbreak of the Iran war, resuming in April. Subsequently, operations were suspended again on July 16 due to security threats, with a gradual resumption from July 27.

Looking ahead, Dana Gas intends to commence drilling at Chemchemal before the year's end, with the goal of securing its first gas in early 2028. In Egypt, third-quarter production saw a 15 percent increase to 13,850 boe per day, supported by new drilling initiatives.