Rise in UAE's Dana Gas Revenue & Profit in 2024

Dana Gas, a leading regional private sector natural gas company, has reported a revenue growth of 5% in FY 2024, reaching AED 1.63 billion (~US$445 million), up from AED1.55 billion (~US$423 million) the year before, driven primarily by the recognition of additional revenue from improved fiscal terms under the recently signed Consolidated Concession Agreement in Egypt.

Announcing its un-audited preliminary financial results for the 12-month period ended December 31, 2024, Dana Gas said its net profit stood at AED553 million (~US$151 million), compared to AED 586 million (~US$160 million) in 2023, after a one-off impairment charge of AED121 million (~US$33 million) in Egypt related to past costs of old concessions.

Excluding this one-off impairment, net profit for the year was AED674 million (~US$184 million), a 15% increase from AED586 million (~US$160 million) in 2023, it stated.

In Q4 2024, Dana Gas said its revenue surged by 64% to hit AED583 million (~US$159 million), up from AED356 million (~US$97 million) in the same period last year, primarily due to the recognition of additional revenue under the newly signed Consolidated Concession Agreement in Egypt.

The Q4 net profit increased by 15% to AED143 million (~US$39 million), compared to AED125 million (~US$34 million) in Q4 2023, as a result of the additional revenue and lower financing costs.

In September last year, Pearl Petroleum took over full responsibility for the KM250 expansion project following the termination of the original EPC contractor. Construction resumed fully in December and the project is now scheduled to achieve first gas by Q2 2026.

Once operational, KM250 will add processing capacity for an additional 250 MMscf/d of gas, significantly boosting Company’s cashflows and financial performance, said the statement from Dana Gas.

Khor Mor facilities currently supply more than 500 mmscf/d of gas to four power stations and enables the generation of approximately 2,800 MW of electricity which constitutes more than 75% of the KRI’s power generation.

This supply of steady and affordable gas, results in significant fuel cost savings and affordable electricity for millions of Iraqis in the KRI and neighboring governorates, benefiting the whole of Iraq, said the statament.

Once completed, additional gas supplied by the KM 250 project to the region’s power stations will play a vital role towards further supporting the economic development across the KRI and Iraq, it added.

At the end of 2024, Dana Gas formally signed the new Consolidation Agreement with the Ministry of Petroleum & Mineral Resources and the Egyptian Natural Gas Holding Company (EGAS).

The agreement replaces the company’s existing concessions with a single concession encompassing an additional 297 sq. km of exploration acreage and improved fiscal terms, enabling greater operational efficiency and unlocking further investment opportunities.

Under the Agreement, Dana Gas has committed to a US$100 million development and exploration programme, including the drilling of 11 wells.

On the solid results, CEO Richard Hall said: "I am pleased with the progress we made in 2024. After some delays with KM250, Pearl took over direct management of the project from the incumbent EPC contractor and I am confident, with increased Dana Gas involvement, that it is now back on track to deliver first gas by Q2 2026."

"Once completed, the project will strengthen our operations and significantly enhance our cash flow. Additionally, thanks to the previously established payment mechanism in the KRI, we received regular payments throughout the year, reducing our outstanding receivables and strengthening our balance sheet," stated Hall.

"In Egypt, the successful signing of our new Concession Agreement has led to commencement of the planned investment program, and we’re excited about the potential upside possibilities under the new Agreement," he added.

Looking ahead, Hall said the group was optimistic about the future and actively evaluating the resumption of sustainable dividend payments to its shareholders.

"We will also continue to focus on operational excellence, innovation, and strengthening partnerships in the KRI and Egypt to drive long-term growth," he added.