Dana Gas posts 50% rise in Q3 profit as Kurdistan gas output surges

Dana Gas reported a 50 per cent rise in its third-quarter profit as increased production from its main gasfield in Iraq's Kurdistan region and stronger hydrocarbon prices boosted earnings despite security disruptions.

Net profit climbed to $45 million in the three months to September, from $30 million a year earlier, the Sharjah-based company said on Friday. Revenue rose 42 per cent to $119 million.

“Higher production at Khor Mor and stronger realised hydrocarbon prices have driven improved earnings, demonstrating the tangible returns from our investments,” chief executive Richard Hall said.

For the first nine months, profit rose 48 per cent to $152 million, although the figure included a one-off $48 million gain from a gas metering reconciliation with the Kurdistan Regional Government, Abu Dhabi-listed Dana Gas said. Excluding that adjustment, profit was largely unchanged at $104 million.

Payments remain a challenge, with Kurdistan trade receivables rising to $189 million at the end of September, from $80 million at the end of 2025. Auditor Ernst & Young drew attention to uncertainty over whether the reconciliation receivable will be recovered, although it did not qualify its review.

Dana Gas produces natural gas and associated liquids in the Kurdistan region and Egypt, with the former accounting for most of its production and revenue. It also holds gas-related assets in the UAE.

The company entered the Kurdistan region in 2007 alongside Crescent Petroleum, signing an agreement with the KRG to develop the Khor Mor and Chemchemal gasfields. The two UAE companies each own 35 per cent of the Pearl Petroleum consortium, which operates the fields, alongside OMV, MOL and RWE.

Khor Mor supplies gas used to generate about 80 per cent of Iraqi Kurdistan's electricity, making it critical to the region's power supply.

Dana Gas's share of Kurdistan production rose 18 per cent to 47,550 barrels of oil equivalent (boe) a day during the quarter, lifting group output 17 per cent to 61,400 boe a day.

The $1.1 billion KM250 expansion, completed in October 2025, increased Khor Mor's gas processing capacity by 50 per cent to 750 million standard cubic feet a day.

The gains came despite two interruptions to production this year. Production was halted on February 28 following the outbreak of the Iran war, before resuming in April. Operations were suspended again on July 16 because of security threats and gradually resumed from July 27.

Dana Gas plans to begin drilling at Chemchemal before the end of the year, aiming to secure its first gas in early 2028.

In Egypt, third-quarter production rose 15 per cent to 13,850 boe a day, supported by new drilling.