Dana Gas PJSC (the Company), the Middle East’s largest regional private sector natural gas company, recorded a second-quarter (Q2) net profit increase of 3% to AED124 million ($34 million) driven by improved gross profit margins. The improved margins helped offset the 7% drop in revenue during the same period due to lower realised prices.

 

Revenue in H1 2024 reached AED696 million, compared to AED814 million in H1 2023 resulting in net profit of AED263 million given the lower realised prices in the Kurdistan Region of Iraq (KRI), alongside lower production outputs in Egypt. The company’s receivables in KRI were reduced to AED297 million and in Egypt at AED220 million at the end of the first half, a WAM report said.

 

The company’s balance sheet has grown stronger as a result of proactive measures that reduced corporate debt by AED95 million during the first half of 2024.

 

H1 overall production

The group’s overall production in H1 2024 averaged 55,250 boepd, a 7% decrease compared to 59,800 boepd in H1 2023. KRI production grew 3% to 37,600 boepd, driven by higher gas volumes supplied to local power plants in response to increased demand. This continues the momentum from the previous year, when the company achieved a record gas output of 520 mmscfd.

 

Production in Egypt declined 25% to 17,650 boepd in H1 2024 from 23,400 in H1 2023, primarily due to natural field declines. However, the ongoing consolidation efforts are set to bring new production streams online, which are expected to significantly enhance the company’s capacity and operational efficiency in the country.

 

Richard Hall, CEO of Dana Gas, said: “Thanks to a newly established payment mechanism with the local government, we have seen significant improvements in our receivables in the KRI, receiving regular payments since November 2023 and effectively reducing past receivables. Increased production output in the KRI, driven by higher demand from local power plants, has bolstered our operational performance. Coupled with robust hydrocarbon prices, we achieved a strong financial performance despite lower condensate prices and reduced output from Egypt.

 

"Looking ahead, reflecting our commitment to our Shareholders, we are optimistic about the remainder of 2024 and look forward to resuming dividend payments as soon as feasible.”--TradeArabia News Service