Dana Gas released its financial results for nine months ending 30 September 2024, reporting a decline in net profit of AED 410 million ($112 m), compared to AED 462 million ($126m) in 9M 2023, due to lower realized prices in condensate and LPG.
Meanwhile, the company focused on driving cost and production optimization, especially in the KRI to offset the financial impact of these challenges.
Thereby, the company’s KRI production increased by 3% to 38,200 barrels of oil equivalent per day (boe/d), driven by higher gas volumes supplied to local power plants due to stronger demand.
Additionally, the company’s total collections increased to AED 872 million ($238m) in 9M 2024, compared to AED 612 million ($167m) during 9M 2023.
As for Egypt, the company said that the Company’s new Concession Agreement , which was ratified by the Egyptian Parliament in June, consolidates existing producing concessions into a unified framework with improved terms. Under this agreement, Dana Gas has committed to a significant development and exploration program, including drilling 11 wells. This work program, with a planned investment of approximately $100 million, is expected to increase production and add 80 billion cubic feet of gas reserves. These efforts will help offset natural declines in production and stabilize output over the coming years. Additionally, the increased gas supply is projected to yield cost savings of over $1 billion for Egypt’s economy, reducing reliance on imported LNG and mazut for power generation.
However, for these investments to move forward, Dana Gas has requested that the Egyptian government releases $24 million from the outstanding $59 million receivables balance, which will be fully reinvested in the country.
“With respect to Egypt, we are currently focused on resolving issues around payments, which are preventing us from investing as per the new Concession Agreement. Our plans are ready to execute as soon as the receivables are paid down. As one of the earliest UAE investors in Egypt, Dana Gas has contributed over $2 billion to the country’s energy sector since 2007. We look forward to continuing this contribution and playing a key role in advancing Egypt’s energy security,” said Richard Hall, CEO of Dana Gas.
“We have also reduced our corporate debt over the course of the first nine months, which continues to strengthen our balance sheet. As a result, the Company will evaluate the resumption of a sustainable annual dividend in March,” Hall added.
Dana Gas has fully paid down $70m facility, reducing corporate debt from AED 396 million ($108m) to AED 102 million ($28m).
