Profits of Dana Gas surge in the initial half, credit to robust performance in Egypt operations
In the first half of 2025, Dana Gas, a leading private natural gas company based in Sharjah, has showcased resilient and profitable operations in both Egypt and the Kurdish region of Iraq.
In Egypt, Dana Gas is executing a $100 million investment program aimed at increasing up to 80 billion cubic feet (bcf) of recoverable gas reserves over two years. This includes the successful drilling and completion of the Begonia-2 well, which confirmed 9 billion cubic feet of gas reserves and is expected to produce 5 million standard cubic feet per day (mmscf/d). The Balsam-3 well, with an estimated 4 bcf reserves, is expected to add another 3 mmscf/d. Despite a 29% production decline in Egypt due to natural field depletion, these investments are designed to offset declines and restore production volumes.
The Egypt investment programme is not only beneficial for Dana Gas but also for Egypt's energy sector. It is expected to unlock more of Egypt's gas potential, potentially saving Egypt over $1 billion by reducing LNG and fuel oil imports. In Egypt, Dana Gas has made "solid progress" in the delivery of its investment programme.
In the Iraqi Kurdish region, Dana Gas's operations at the Khor Mor gasfield remain strong, with daily output exceeding 500 mmscf/d, marking a 75% increase since 2017. A major expansion project at Khor Mor, known as KM250, is underway to boost production by an additional 250 mmscf/d, enhancing regional electricity supply. Dana Gas is also developing the nearby Chamchamal gas field, expected to produce 75 mmscf/d by mid-2026. These expansions have contributed to a 3% increase in Kurdistan production during H1 2025.
Financially, Dana Gas reported a 1% increase in net profit to AED 270 million ($73 million) in H1 2025 compared to the same period in 2024. This profit growth occurred despite a decline in revenues from AED 696 million to AED 627 million, impacted by lower hydrocarbon prices and decreased production in Egypt. The improved profitability is attributed to strong operational performance in Kurdistan and renewed investment momentum in Egypt, with better pricing and higher production in the KRI partially offsetting declines.
Looking ahead, Dana Gas remains optimistic for the second half of the year and is focused on execution, value creation, and sustaining dividend payments to its shareholders. With exploration and production assets in Egypt, the Iraqi Kurdish region, and the UAE, the company is well-positioned to continue its growth and contribute positively to the energy sectors of the regions it operates in.
- In the UAE, Dana Gas, a prominent private natural gas company, demonstrated robust and profitable operations in the first half of 2025.
- Apart from Egypt and the Kurdish region of Iraq, Dana Gas operates in other parts of the Middle East.
- On the global stage, Dana Gas's operations in the world's energy industry have included significant investments in business and energy sectors.
- The $100 million investment program in Egypt by Dana Gas is expected to increase recoverable gas reserves by up to 80 billion cubic feet over two years.
- The success of the Begonia-2 well, which confirmed 9 billion cubic feet of gas reserves, will produce 5 million standard cubic feet per day.
- The energy sector of the Middle East is set to benefit from Dana Gas's expansion projects in Iraq, such as KM250 and Chamchamal.
- With a focus on execution, value creation, and sustaining dividend payments, Dana Gas intends to continue its growth trajectory and contribute positively to the energy sectors of the regions it operates in, including the release of news updates on its progress.
