Dana Gas reports 53% rise in adjusted net profit for 2022

Middle East’s private natural gas company, Dana Gas, reported an adjusted net profit of Dhs718m ($196m) for the full year of 2022, on the back of high energy prices.

Excluding other income and impairments, the group’s adjusted net profit last year grew 53 per cent from Dhs469m ($128m) earned in 2021, the company said in its preliminary financial results.

Revenue rose 17 per cent to reach Dhs1.94bn ($529m) in 2022, compared to Dhs1.66bn ($452m) in 2021, due to higher realised prices and production output in the Kurdistan region of Iraq.

Production in the KRI and Egypt remained uninterrupted throughout the year, Dana Gas said in a statement on Wednesday.

In 2022, production in the KRI increased by 1 per cent to 34,300 barrels of oil equivalent per day (boepd), from 33,800 in 2021.

“Our strong results for the year are a testament to our ability to control costs and maintain production levels amid a prolonged environment of high energy prices,” said Dr Patrick Allman-Ward, CEO of Dana Gas.

“In 2022, we managed to optimise our assets in the KRI, reaching record levels of production and increasing capacity by a further 50 MMscf/d following the completion of a by-pass project.”

“The successful completion of the project in the KRI and our plans for maximising production in Egypt will have positive impact on the environment as gas production displaces more carbon intensive fuels for power generation which will enhance the quality of life of residents in the KRI, Iraq and Egypt.”

The company’s operational costs decreased by 5 per cent to reach Dhs209m ($57m) in 2022 compared to Dhs220m ($60m) in 2021. Its cash balance at year-end stood at Dhs553m ($151m), including Dhs322m ($88m) held at the Pearl level.

The company said that it reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) for consolidating  its existing concessions on enhanced fiscal terms.

The new terms will extend the life of Dana Gas’ economic assets, the company said, adding that the agreement is subject to the Egyptian parliament rectification which is expected later this year.

Average group production declined 3 per cent in 2022 to 60,200 boepd. This resulted from an 8 per cent reduction in Egypt to 25,900 boepd, due to natural field declines, offset by 1 per cent increase in KRI’s production output.

“The outlook for this year remains encouraging, especially if oil prices remain at current levels. However, there remains various challenges, specifically with collections in the KRI and foreign currency withdrawals in Egypt.

“We remain vigilant as we look at our top priorities for the year, which are, in addition to securing timely payments, to develop the vast potential presented by our world-class assets in the KRI and maximise the value of our Egypt assets once the new concession consolidation agreement is ratified by the Egyptian parliament,” added Allman-Ward.

The group collected a total of Dhs1.16bn ($318m) in 2022, with Egypt and the KRI contributing Dhs311m ($85m) and Dhs854m ($233m), respectively.

Read: Dana Gas reports 2021 collections from Egypt and Kurdistan of $377m

Dana Gas, founded in 2005, is listed on the Abu Dhabi Securities Exchange, and has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE.