Fall in UAE's Dana Gas Revenues as Egypt Output Lowers, Partly Offset by Higher Kurdish Production

Dana Gas has announced its financial results for the half-year ended 30th June 2025, which included the following:

Net Profit: AED 270 million (~US$73 million) in H1 2025, a 1% increase over H1 2024.

Revenue: AED 627 million (~US$171 million) in H1 2025, down from AED 696 million (~US$190 million) in H1 2024 due to lower hydrocarbon prices and Egypt production decline, partly offset by higher Kurdistan output and improved pricing.

Production:

 - Daily gas output at Khor Mor field exceeded 500 million standard cubic feet per day (MMSCFD).

 - Group production in KRI rose 3% to 38,550 barrels of oil equivalent per day (boepd) despite planned maintenance.

Maintenance: Planned maintenance at Khor Mor in April temporarily reduced output but was completed ahead of schedule, ensuring long-term reliability.

KM250 Expansion Project:

 - Construction progressing well, with proactive management accelerating progress towards "first gas."

 - Once operational, KM250 will add 250 MMSCFD capacity, increasing Pearl Petroleum's total capacity by 50% and significantly boosting production and cash flow.

Chemchemal Development:

 - Ongoing under ~US$160 million investment program.

 - Drilling and site work underway for extended well test facility targeting early production of up to 75 MMSCFD.

Cash and Receivables:

 - Cash balance at end of June 2025: AED 638 million (~US$174 million), including AED 539 million (~US$147 million) at Pearl Petroleum level.

 - Collections: AED 378 million (~US$103 million) from KRI in H1 2025.

 - Dana Gas's share of receivables in KRI: AED 209 million (~US$71 million).

 - Pearl Petroleum operators are actively engaging with KRG to improve payment performance and address outstanding receivables, which are crucial for sustaining and expanding production to meet electricity demand.