Dana Gas reports production, profit increase in first half year

ERBIL, Kurdistan Region - The UAE-based Dana Gas on Thursday announced recording an 82 percent net profit increase in the first half of the year in the Kurdistan Region with its production rising by one percent despite the security challenges facing the Region.

According to the report released by the company, Dana Gas generated a net profit of $111 million in the first six months of the year, an 82 percent increase compared to the same period last year.

“Despite the challenging security situation, the company’s current operations in the KRI[Kurdistan Region] have continued uninterrupted. Production from the KRI [Kurdistan Region] increased 1% in the first half and the KM250 expansion project has progressed well,” the report read.

The company has become the target of a series of rocket attacks since June with the latest being on July 25. 

The gas field was targeted by rockets three times in a matter of four days in June, leading the company to temporarily halt work on the KM250 expansion project.

However, despite the challenges, the company has a positive outlook for the rest of the year.

“Dana Gas delivered strong half year results, supported by our robust operational performance, low cost base and favourable energy market conditions. Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high,” CEO of Dana Gas, Patrick Allman-Ward said.

Despite the security threats on their gas field, Dana Gas in late June said they would be able to meet Kurdistan Region’s full gas demand in about two years. 

Crescent Petroleum and its affiliate, Dana Gas, reached an agreement with the Kurdistan Regional Government (KRG) in 2007 to develop the Region’s substantial gas resources. They also agreed to establish Kurdistan Gas City to promote private sector investment.