Dana Gas, natural gas Company in the Middle East, announced increase in its normalized net profit to 161 million on November 9.

According to the announcement 11% of its production capacity is in Kurdistan Regional Government. “The gains in Dana Gas’s profitability in the first nine months of the year were driven by higher realized prices, prudent cost control and strong operational performance in the Kurdistan Region of Iraq (KRI),” the announcement added.

For the first nine months of the year, the Company generated a net profit of AED 589 million ($161mm) or 8.4 fils per share, a 64% increase compared to an adjusted net profit (excluding the other income and impairments) of AED 358 million ($98 mm) in 9M 2021.

The Company’s 9M revenues increased 24% year on year to AED 1,521 million ($415 million) compared to AED 1,224 ($334 million) in 9M 2021 whilst operating costs declined by 7%.

The Company’s realized prices for the first nine months averaged $85/bbl for condensate and $43/boe for LPG compared to $51/bbl and $34/boe respectively in 9M 2021.

In the first nine months, production in the KRI increased 1% and at the beginning of the fourth quarter, production capacity increased at the Khor Mor Gas Plant by 50 MMscf/d to 500 MMscf/d following the successful completion of further plant de-bottlenecking enhancements.

 Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

“Dana Gas produced another robust set of financial results in the first nine months of the year, reflecting the Company’s continued attention to cost controls amid higher production in the KRI and supportive hydrocarbon prices. While headwinds to the global economy are increasing amid higher inflation and slowing growth, the outlook remains positive given continued elevated energy prices and the Company’s strong balance sheet and low debt position.”

 Operations & Production

 The Group’s overall production in 9M 2022 was 60,600 boepd, a 4% reduction from 63,200 boepd in 9M 2021. This was due to a 10% production drop in Egypt, mainly as a result of natural field declines. Production output in the KRI increased slightly with production averaging 34,300 boepd in 9M 2022 versus 34,000 in 9M 2021.

 Liquidity

The Company’s cash position as at September 30 stood at AED 784 million ($214mm), including AED 271 million ($74mm) held at the Pearl level. The Company distributed an interim dividend to shareholders in October for the first six months of 2022 of 4.5 fils per share, equivalent to AED 315 million ($86mm).

Dana Gas is the Middle East’s first and largest regional private sector natural gas Company which founded in 2005. Dana Gas and Crescent Petroleum made an agreement with the Kurdistan Regional Government (KRG) in 2007, and established The Kurdistan Gas Project.