Sharjah, UAE — Dana Gas posted a net profit of AED 462 million ($126 mm) in the first nine months of 2023 as compared to AED 589 million ($161mm) in 9M 2022.
Profitability dropped 22 percent due to lower realized prices amid a decline in hydrocarbon prices in international markets, Dana Gas said.
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 percent to AED 1,195 million ($326mm) compared to AED 1,521 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, said, “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.”
