Dana Gas announced its financial results for the nine months ended 30 September 2023.In the first nine months of the year, the Dana Gas generated a net profit of Dhs462 million ($126 mm) as compared to Dhs589 million ($161mm) in 9M 2022.

Profitability dropped 22% due to lower realised prices amid a decline in hydrocarbon prices in international markets. The decline in profitability was also due to additional discounts on condensate sales in the Kurdistan Region of Iraq (KRI), where the Company has continued to sell to third party local buyers in what is a competitive market as a result of the export pipeline closure earlier this year.

The Company’s revenue for the first nine months of the year decreased 21% to Dhs 1,195 million ($326mm) compared to Dhs1,521 million ($415mm) in 9M 2022. The Company’s realized prices during the period averaged $53/bbl for condensate and $36/boe for LPG compared to $85/bbl and $43/boe respectively in 9M 2022.

The impact of lower realized prices on the Company’s profitability was partially offset by a production increase in the KRI and reduced operating costs.

Richard Hall, the newly appointed CEO of Dana Gas, commented:”Dana Gas has demonstrated remarkable resilience in its performance throughout the first nine months of the year. Our proactive measures implemented over the past few years, such as cost reductions and production optimization, have yielded clear operational and financial benefits and helped to offset lower hydrocarbon prices. Dana Gas will also continue to work closely with our government partners in Egypt and the KRI to ensure timely settlement of all outstanding receivables.

‘’The Group’s overall production in 9M 2023 was 59,750 boepd, a 1% reduction from 60,600 in 9M 2022. This was due to a 14% production drop in Egypt, mainly as a result of natural field declines. Due to proactive reservoir management and effective optimization of existing wells, this decline was notably less than the typical annual declines of 20-30% typical of the Nile Delta fields. Production output in the KRI increased 8% with production averaging 37,150 boepd in 9M 2023 versus 34,300 in 9M 2022. KRI production was supported by the successful debottlenecking project carried out in the second half of 2022.