Dana Gas, the Middle East’s largest regional private sector natural gas company, reported a marginal increase in net profit despite lower revenue in the first half of 2025.
Net profit rose 2.6 per cent to AED 270 million (US$73.5 million) due to strong operation in Kurdistan Region of Iraq (KRI) and new investment momentum in Egypt despite lower prices. The company’s net profit in H1 2024 was AED 263 million (US$71.6 million).
Dana Gas reports marginal profit rise
Revenue for the period dropped to AED 627 million (US$170.7 million), compared to AED 696 million (US$189.5 million) in the corresponding period last. The company attributed this fall to lower realised hydrocarbon prices and Egypt production declines, which was partially offset by higher KRI output and improved pricing in Egypt.
The company said it has made further progress on the KM250 expansion and Chemchemal development projects in KRI, while in Egypt, the drilling of the first well under its new investment programme met with a successful outcome.
Richard Hall, CEO of Dana Gas, commented: “We are now seeing the results of a proactive, hands-on approach across the business, one that keeps us close to the operations and focused on delivery. In the KRI, our operational teams have maintained excellent performance, and KM250 continues to move forward at pace. Our hands-on approach is helping us accelerate delivery of the project.
“In Egypt, we have now kicked off our new investment programme, and it’s an important step forward, both for Dana Gas and for Egypt’s energy sector. While early results have been promising, it is essential that our governmental partners ensure timely payments and enable urgent permit approvals to continue the program and unlock more of the country’s gas potential.
“We are very optimistic about what the second half of the year holds and remain focused on execution, value creation and sustaining dividend payments to our shareholders.”
Planned and essential maintenance activities at the Khor Mor facility in KRI in April temporarily reduced output during Q2, but production remained strong in H1 2025, with daily gas output exceeding 500 million standard cubic feet per day (MMSCFD).
Dana Gas said it has taken a more proactive and hands-on approach to delivery along with its partners in the KM250 expansion project. This has accelerated progress toward first gas. The project remains on an advanced schedule and, once operational, will add 250 MMscfd of processing capacity, increasing Pearl Petroleum’s total output capacity by 50 per cent and significantly boosting Dana Gas’ production and cash flow.
In Egypt, Dana Gas has made solid progress in delivering its US$100 million investment programme, following the signing of the Consolidated Concession Agreement in 2024. In July, it announced the successful drilling and completion of Begonia-2, the first of 11 planned wells, confirming 9 billion cubic feet (bcf) of gas reserves and expected production of 5 MMSCFD.
In parallel, recompletion of the Balsam-3 well is underway, with expected reserves of 4 bcf and anticipated additional production of 3 MMSCFD.
Group production averaged 51,000 barrels of oil equivalent per day (boepd) in H1 2025, compared to 55,250 boepd during the same period last year. Despite planned maintenance activities in KRI, production increased by 3 per cent to 38,550 boepd.
In Egypt, production declined by 29 per cent to 12,450 boepd from 17,650 boepd in H1 2024, primarily due to natural field declines. However, early results from Begonia-2 and Balsam-3 are expected to support a recovery in production volumes in the long term.
