Dana Gas Collects $156 Million From Kurdistan Region in 2026
Dana Gas reports a 48% rise in nine-month net profit to $152 million on higher Khor Mor output, with $156 million collected from the Kurdistan Region.
ERBIL (Kurdistan24) - Dana Gas, the largest private-sector natural gas company in the Middle East, reported on Friday that its net profit for the first nine months of 2026 rose 48% to AED 558 million ($152 million). The company attributed the result to higher production at the Khor Mor field in the Kurdistan Region and to stronger oil and gas prices.
“I am pleased to report a strong third-quarter performance, with Group production increasing 17% and net profit rising 50%. Higher production at Khor Mor and stronger realised hydrocarbon prices have driven improved earnings, demonstrating the tangible returns from our investments,” Dana Gas CEO Richard Hall said in the company’s statement.
Net profit for the nine months ended Sept. 30 compares with AED 379 million ($103 million) in the same period of 2025.
The figure includes a one-off positive gas metering reconciliation of AED 176 million ($48 million) recognized in the first quarter.
Without it, net profit was AED 382 million ($104 million). Third-quarter net profit rose 50% year on year to AED 165 million ($45 million), up from AED 109 million ($30 million).
Revenue for the nine months increased 48% to AED 1.38 billion ($377 million), from AED 935 million ($255 million) a year earlier.
Excluding the one-off adjustment, revenue rose $74 million, or 29%, driven by higher production and gas sales volumes in both the Kurdistan Region and Egypt, along with stronger realized prices.
Third-quarter revenue reached AED 436 million ($119 million), up 42% from AED 308 million ($84 million). EBITDA increased 61% to AED 917 million ($250 million), compared with AED 570 million ($155 million).
Production growth
Group production averaged 55,800 barrels of oil equivalent per day (boepd) over the nine months, up 6% from 52,650 boepd a year earlier.
In the third quarter, output averaged 61,400 boepd, a 17% increase from 52,500 boepd in the same quarter of 2025.
In the Kurdistan Region, production averaged 42,300 boepd in the nine-month period, up 5% from 40,350 boepd.
Third-quarter output rose 18% to 47,550 boepd from 40,450 boepd, which the company linked to higher utilization of the expanded Khor Mor facilities.
Khor Mor and Taza deliveries
Dana Gas and its partners benefited from higher production and gas sales volumes at Khor Mor after the KM250 expansion was completed in October 2025.
The project raised installed gas processing capacity by 50% to 750 MMscf/d. The company said the expanded capacity leaves room for further growth as demand increases and additional routes to market become available.
In August, initial gas deliveries were made to Iraq’s Ministry of Electricity under an agreement to supply 100 MMscf/d to the Taza power station in Kirkuk.
The company said this shows the potential to serve additional domestic demand beyond the Kurdistan Region.
It added that gas deliveries to the Taza power station were restarted earlier this week. After the reporting period, planned maintenance at Khor Mor was completed ahead of schedule in October.
The work involved a brief shutdown that temporarily reduced production that month.
Chemchemal next
At the Chemchemal field, development continued under Pearl Petroleum’s $160 million appraisal and early development program.
The company plans to start drilling before the end of 2026 and is targeting first gas production in early 2028.
Long-term gas sales agreements covering up to 170 MMscf/d are already in place with industrial customers in the Kurdistan Region.
The company said these provide a secured route to market for the field’s future output and support the diversification of its gas revenues.
“We are also advancing Chemchemal as our next major growth project, with drilling planned before year-end and long-term gas sales agreements already in place,” Hall said.
Collections and liquidity
Total collections in the nine-month period rose to AED 843 million ($230 million), from AED 671 million ($183 million) a year earlier.
Of the total, AED 572 million ($156 million) came from the Kurdistan Region. Trade receivables at the end of September stood at AED 693 million ($189 million) in the Kurdistan Region.
Dana Gas said it continues to engage constructively with the Kurdistan Regional Government (KRG) to improve the timeliness of collections and reduce outstanding receivables.
The company said this supports continued investment across its core assets and its long-term commitment to shareholder returns.
As of Sept. 30, the corporate cash balance stood at AED 467 million ($128 million), with an additional AED 447 million ($122 million) held at the Pearl Petroleum level.
In October, Pearl Petroleum priced a $500 million five-year senior secured bond. The proceeds are intended to refinance its existing $350 million bond and support further investment in the Khor Mor and Chemchemal fields.
Looking ahead, he said the company’s priority is “to sustain this momentum, further strengthen cash generation, and deliver long-term value to Shareholders.”
He added that the company continues to engage constructively with the Kurdistan Region to improve collections and reduce outstanding receivables, which together with its strengthening financial position, “underpin our commitment to sustainable dividends.”