The Egyptian assets of Dana Gas, the Middle East’s largest regional private-sector natural gas company, recorded one of their strongest operational performances since 2017 during the first quarter (Q1) of 2026, with production rising 4% YoY to 13,050 barrels of oil equivalent per day (boe/d). This marks the first growth in production in nine years.
In a press release, Dana Gas attributed the improvement to its ongoing investment program under the Consolidated Concession Agreement signed in December 2024. The agreement consolidated 13 development leases from El Manzala, West El Manzala and West El Qantara into a single concession, New El Manzala and aimed at stabilizing production and reviving sustainable growth across its Nile Delta assets.
The press release added that drilling and well workover activities will continue throughout the year to maintain momentum. It also noted that the company has received all outstanding dues from the Egyptian government, which repaid a final $20 million in April.
During the quarter, Dana Gas reported net profit of $74 million, up 72% year-on-year (YoY). The company’s revenues also climbed 59% YoY to $145 million during Q1 of 2026.
The increase was mainly driven by a one-time gain of $48 million linked to gas metering reconciliation in the Kurdistan Region of Iraq (KRI), partially offset by a one-off drilling cost of $6 million in Egypt, stated the press release.
Across its operations, group production averaged 53,150 boe/d during Q1 2026, slightly down from 53,950 boe/d in the same period last year. In Iraq, production averaged 40,100 boe/d compared to 41,400 boe/d in Q1 2025, mainly due to a temporary operational suspension at Khor Mor facility caused by regional geopolitical tensions.
Still, the company reported a major operational milestone after completing the KM250 expansion project in Iraq, which pushed gas production above 700 million standard cubic feet per day (mmscf/d) in January. The expansion added 15,000 boe/d to Dana Gas’s net production in the KRI, lifting total group output to 70,000 boe/d, the highest production level since 2018.
At the end of February, operations at the Khor Mor facility were temporarily suspended and subsequently resumed in March at reduced capacity. Despite this, Dana Gas said it swiftly maintained production while moving ahead with the development of the Chemchemal project, backed by a $160 million investment program. The company also signed gas sales agreements in January to supply up to 142 mmscf/d to industrial customers.
“During the quarter, we proactively adapted our operations to the challenging macro circumstances which started in March, while continuing to supply our customers. This underscores the strength of our asset base and the flexibility of our operating model,” said Richard Hall, CEO of Dana Gas.
“Looking ahead, we remain focused on operating with discipline and flexibility, progressing our key growth projects, including Chemchemal, and utilizing our available capacity to capture further upside as conditions continue to normalize,” Hall added.
Dana Gas ended the quarter with a consolidated cash balance of $228 million, including $95 million held at the Pearl Petroleum level, a consortium of five companies, led by Dana Gas and Crescent Petroleum in KRI.
The company collected $68 million during the quarter, including $60 million from the KRI, where it maintained a 100% collection rate.
Meanwhile, shareholders approved a dividend of 6.5 fils per share in April, totaling $124 million, up 18% YoY. The dividend is set to be paid on May 19, 2026.
