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The company reported a net profit of AED 270 million (US$74 million) for the first quarter of 2026, a 72% increase from the previous year. This net profit includes a one-time gain of AED 176 million (US$48 million) related to the adjustment of gas volume differences in the Kurdistan Region of Iraq since 2018. It is partially offset by a one-time cost of AED 22 million (US$6 million) related to drilling activities in Egypt.
The net profit was AED 95 million (US$26 million), reflecting higher costs after the completion of Khor Mor 250 gas expansion project and temporary production disruption in March. The challenges are temporary, as the company aims to make the most of its production capacity.
Revenue reached AED 531 million (USD 145 million), up from AED 334 million (USD 91 million) in the first quarter of 2025. The company benefited from a one-time settlement. Revenue from core operations increased by AED 22 million (USD 6 million), because of higher production in Egypt and increased gas sales volumes in Kurdistan, Iraq.
Following the completion of the Khor Mor 250 expansion, Dana Gas saw an increase in its production capacity. Gas production topped 700 million standard cubic feet per day (MMscfd) in January, adding 15,000 barrels of oil equivalent per day (boepd) to the company’s total production in the Kurdistan Region of Iraq. This brought the Group’s total production to 70,000 boepd for the first time since 2018.
The company and its partners temporarily halted operations at the Khor Mor facility at the end of February. The facility was restarted in March with reduced production, as it adjusted to changes in the regional security environment.
Despite these challenges, the company acted quickly and effectively, maintaining a reliable supply for its customers, unlike many of its regional peers. This demonstrated its operational strength.
Dana Gas and its partners are making progress on developing the Chemchemal field as part of a $160 million investment program. In January 2026, they signed gas sales agreements to supply up to 142 million cubic feet per day to industrial customers. This secures future demand from the Chemchemal field and expands its customer base in the region.
Dana Gas has made notable progress in its investment program in Egypt, which is part of the agreement for the concession areas. This helps ensure stable production across the company's assets in the Nile Delta and puts it back on a growth path.
The company's average production in Egypt during the first quarte, 2026, showed growth, which marks the first production increase since 2017. It also shows the early results of drilling and well-maintenance efforts across its Egyptian assets.
On this occasion, Richard Hall, CEO of Dana Gas, said: “Dana Gas continues to show its skills in a complex operating environment. We are effective at turning our planned strategies into real results and improving the company’s financial position.
We successfully navigated tough regional conditions while maintaining stable supplies for our customers during this quarter, which highlights the quality of our assets and the strength of our operating model. We also made strides in boosting our financial position through a new $75 million credit facility and settling all our outstanding receivables in Egypt in April.
Looking ahead, we will focus on operating our assets with maximum flexibility in the current circumstances. We will also continue our growth projects, especially the development of the Chemchemal field, and use our full production capacity when conditions allow.”
The Group’s average production for the first quarter was 53,150 barrels of oil equivalent per day (boepd), compared to 53,950 boepd in the first quarter of 2025.
Dana Gas’s average production in the Kurdistan Region of Iraq declined slightly to 40,100 boepd, compared to 41,400 boepd in the first quarter of 2025. This decline reflects reduced production at the Khor Mor field during March due to the regional security situation.
The company’s average production in Egypt rose by 4% to 13,050 boepd, a growth supported by continued investment in the asset development program, confirming that production is back on a growth path.
Dana Gas’s cash balance stood at AED 836 million (US$228 million) as of March 31, 2026, including AED 348 million (US$95 million) held by the Pearl Petroleum Consortium.
Total payments received during the quarter amounted to AED 249 million (US$68 million). Collection performance remained strong in the Kurdistan Region of Iraq, with AED 220 million (US$60 million) collected, representing 100% collection.
The collection rate in Egypt was approximately 50% during the period. In April, at the end of the period, the company received a payment of AED 73 million (US$20 million), completing the settlement of all outstanding receivables in Egypt.
In March 2026, the company secured a bank facility of AED 275 million (US$75 million). This significantly enhanced the company’s liquidity and provided greater financial flexibility at a lower cost than the previous facility, which was fully repaid in March.
The company’s general assembly approved in April the distribution of cash dividends to its shareholders worth 455 million dirhams ($124 million), to be paid on May 19, 2026.
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