Dana Gas Q3 profit up 50%, nine-month earnings hit AED558m

Dana Gas Q3 profit rose 50% to AED165 million ($45 million) as higher output at the Khor Mor field in Iraqi Kurdistan and firmer prices lifted earnings, the Sharjah-based company said on Friday.

Revenue for the three months to 30 September climbed 42% to AED436 million ($119 million), from AED308 million a year earlier. Group production averaged 61,400 barrels of oil equivalent per day in the quarter, up 17%.

For the first nine months of 2026, net profit rose 48% to AED558 million ($152 million), from AED379 million. Revenue grew 48% to AED1.38 billion ($377 million) and EBITDA increased 61% to AED917 million ($250 million).

The nine-month figures include a one-off gain of AED176 million ($48 million) from a gas metering reconciliation with the Kurdistan Regional Government, booked in the first quarter. Stripping that out, net profit was AED382 million ($104 million), which the company described as broadly in line with the prior year, while revenue grew 29%.

Khor Mor expansion drives Dana Gas Q3 profit

Production in the Kurdistan Region of Iraq rose 18% in the quarter to 47,550 boepd as the company made greater use of the expanded Khor Mor plant. The KM250 project, completed in October 2025, raised the facility’s gas processing capacity by 50% to 750 million standard cubic feet per day.

“Higher production at Khor Mor and stronger realised hydrocarbon prices have driven improved earnings,” chief executive Richard Hall said in a statement. The field supplies the gas behind about 80% of Iraqi Kurdistan’s electricity, according to The National.

The gains came despite a disrupted year for operations. Output at Khor Mor was halted on 28 February after the outbreak of the Iran war and resumed in April, The National reported, before a further suspension on 16 July over security threats, with production gradually restarting from 27 July.

Egypt drilling adds output as overdue receivables clear

The Egyptian business also grew. Nine-month production there averaged 13,500 boepd, up 10%, and the drilling programme has added 50 billion cubic feet of gas resources and 35 million standard cubic feet per day of extra production. Six new wells have been drilled this year, with three more exploration wells planned by the first quarter of 2027.

Collections across the group reached AED843 million ($230 million) in the nine months, with AED572 million from Kurdistan and AED271 million from Egypt. The company said it has had no overdue receivables in Egypt since June 2026. “The improved payment position gives us greater confidence to keep investing,” Hall said.

Kurdistan remains the harder market for payments. Trade receivables there rose to $189 million at the end of September from $80 million at the end of 2025, according to The National, which reported that auditor Ernst & Young flagged uncertainty over recovery of the reconciliation receivable without qualifying its review. Hall said the company continues to engage with the regional government to improve collections and reduce outstanding receivables.

Why the results matter for Gulf energy investors

Dana Gas describes itself as the Middle East’s largest regional private-sector natural gas company, and the Dana Gas Q3 profit rise offers a read on how upstream producers have fared through a year of regional conflict. The results land in the same week as Aramco’s third-quarter profit and ADNOC Gas’s latest LNG supply deal.

The balance sheet has room to invest. Corporate cash stood at AED467 million ($128 million) at 30 September, with a further AED447 million ($122 million) held at Pearl Petroleum, the consortium that operates Khor Mor and Chemchemal. Dana Gas and Crescent Petroleum each own 35% of Pearl, alongside OMV, MOL and RWE.

In October, Pearl priced a $500 million five-year secured bond to refinance an existing $350 million bond and to fund investment in both fields.

The next growth project is Chemchemal, where drilling is planned before the end of the year and long-term gas sales agreements are already in place, the company said. The National reported that Dana Gas aims to secure first gas from the field in early 2028. The company also reiterated its commitment to sustainable dividends, although no payout was announced with these results. The full results are available on the Dana Gas press release page.