Profits of Dana Gas surge during first half, propelled by robust performance in Egypt
Dana Gas Reports Strong Operational Performance and Strategic Developments
Dana Gas, a significant private natural gas company in the Middle East, has reported strong operational performance and strategic developments in both Egypt and the Khor Mor gasfield in the Kurdistan Region of Iraq (KRI).
In Egypt, Dana Gas has initiated a $100 million investment program focused on increasing gas production and reserves. The program has seen successful results, such as the Begonia-2 well, which confirmed 9 billion cubic feet (bcf) of gas reserves and is expected to produce 5 million standard cubic feet per day (mmscf/d). Another well, Balsam-3, is currently being completed, with estimated reserves of 4 bcf and expected production of 3 mmscf/d. These efforts aim to add a total of 80 bcf recoverable reserves over two years to offset natural field depletion and reduce Egypt’s LNG import dependence, potentially saving over $1 billion for Egypt's economy.
In the Kurdistan Region, Dana Gas maintains strong production at the Khor Mor field, with daily output exceeding 500 mmscf/d—a 75% increase since 2017. The company is also progressing on the KM250 expansion project, expected to boost production by an additional 250 mmscf/d, significantly enhancing regional electricity generation capacity. Development of the nearby Chamchamal gas field is underway, anticipated to reach 75 mmscf/d by mid-2026.
Despite lower hydrocarbon prices and lower oil-equivalent production in Egypt, Dana Gas has recorded an increase in first-half profit. The company's net profit attributable to equity holders for the six months to the end of June was Dh270 million ($73.5 million), and for the second quarter, it was down 9.7% to Dh112 million. Earnings before interest, taxes, depreciation, and depreciation (Ebitda) was 8.7% lower at Dh105 million.
Dana Gas remains optimistic for the second half of the year. The company intends to remain focused on execution, value creation, and sustaining dividend payments to shareholders. Dana Gas shares were down about 1% on the ADX at midday trading on Friday. The company's average production is about 55,000 barrels of oil equivalent a day.
Table: Recent Developments and Future Prospects
| Location | Recent Developments | Future Prospects | |-------------------|-----------------------------------------------------------------|-----------------------------------------------------------| | Egypt | Begonia-2 well drilled (9 bcf reserves, 5 mmscf/d); Balsam-3 well being completed (4 bcf, 3 mmscf/d) as part of $100 million investment program | Increase recoverable reserves by 80 bcf in 2 years; offset natural depletion; cut LNG imports, saving $1B+ for Egypt | | Kurdistan (Khor Mor) | Strong production >500 mmscf/d; KM250 expansion project underway (+250 mmscf/d production); Chamchamal field development started (75 mmscf/d by mid-2026) | Larger production capacity, supporting regional power generation and supply stability |
Overall, Dana Gas's recent activity indicates a robust commitment to expanding gas production in both regions, with strategic investments aimed at securing long-term output and meeting growing energy demands.
[1] Dana Gas Egypt's Begonia-2 well confirms 9 billion cubic feet of gas reserves [2] Dana Gas Egypt's Balsam-3 well expected to produce 3 million cubic feet of gas per day [3] Dana Gas's Khor Mor gasfield production exceeds 500 million standard cubic feet per day [4] Dana Gas reports 9.7% drop in second quarter profit [5] Dana Gas's Egypt investment programme to save over $1 billion for Egypt's economy
Here are the five sentences that incorporate the given words:
- The news of Dana Gas's strong operational performance in the Middle East has been making headlines around the world.
- The UAE-based energy company, Dana Gas, is actively involved in business ventures across the Middle East, including the UAE, Egypt, and the Kurdistan Region of Iraq.
- A video update from Dana Gas showcases their substantial investments in the energy sector, particularly in the Khor Mor gasfield in Iraq and various projects in Egypt.
- In the recent finance reports, Dana Gas revealed a significant drop in their second-quarter profit, despite their strategic developments in the Middle East and Egypt.
- The ongoing economic growth in the Middle East, led by energy companies like Dana Gas, is expected to have a positive impact on countries like Iraq and Egypt, as well as the broader world economy.
