Dana Gas Q1-2025 Profits Rise as Kurdistan Projects Drive Growth, Boosting Iraq’s Energy Future
Production in the Kurdistan Region remains a cornerstone of Dana Gas’s success story. The company's daily gas production reached 525 million standard cubic feet in Q1 2025, representing a 75% increase since 2017.
ERBIL (Kurdistan24) — Dana Gas, the Middle East’s largest private sector natural gas company, reported a 13% rise in net profit for the first quarter of 2025, fueled in large part by robust operations and expanding investment in the Kurdistan Region of Iraq (KRI), where the company plays a critical role in supporting the region’s electricity supply and future energy infrastructure, according to a company's press release published on May 8.
The Sharjah-based company announced a net profit of AED 158 million ($43 million) in Q1 2025, up from AED 139 million ($39 million) a year earlier, despite a drop in global oil prices and slightly lower overall revenues. The revenue for the quarter reached AED 334 million ($91 million), compared to AED 356 million ($97 million) in Q1 2024. Dana Gas attributed the profit increase to improved gas pricing in Egypt, reduced depreciation and finance costs, and sustained high condensate pricing in the KRI.
Kurdistan Region Drives Operational Success
Production in the Kurdistan Region remains a cornerstone of Dana Gas’s success story. The company, through its joint venture with Crescent Petroleum under Pearl Petroleum, reported continued high output at the Khor Mor gas field — the region’s largest such operation. Daily gas production reached 525 million standard cubic feet in Q1, representing a 75% increase since 2017. Cumulative production at the field surpassed 500 million barrels of oil equivalent, underscoring the asset’s long-term reliability and importance.
Most notably, Khor Mor gas continues to fuel over 75% of the Kurdistan Region’s electricity generation, making Dana Gas a vital energy partner to the Kurdistan Regional Government (KRG).
“Despite softer oil prices, we have increased our profitability and maintained our operational and strategic progress,” said Richard Hall, CEO of Dana Gas. “We achieved higher production in the KRI while reducing our operational and finance costs.”
Accelerated KM250 Expansion to Transform Output
A key development is the accelerated timeline for the KM250 expansion project, which is now set to deliver first gas by Q1 2026. The project will add 250 million standard cubic feet per day of gas processing capacity — a 50% boost in Pearl Petroleum’s total output. It will also produce 7,000 barrels per day of condensate and 460 tonnes per day of liquefied petroleum gas (LPG), which are critical for both local use and export.
This expansion, once completed, is expected to significantly increase Dana Gas’s financial performance and cash flow, further solidifying the company's footprint in the Kurdistan Region.
Chemchemal Field Development: A New Frontier in Iraqi Gas
In a move that signals long-term commitment to the Kurdistan Region and Iraq’s natural gas development, Dana Gas has also initiated the first phase of a $160 million investment plan for the Chemchemal field — one of the largest undeveloped gas fields in Iraq.
This phase includes drilling three wells and installing an extended well test facility, with production of up to 75 million standard cubic feet per day targeted for the second half of 2026. The development of the Chemchemal field is set to be transformative, positioning the Kurdistan Region as a key supplier of cleaner energy within Iraq and potentially beyond.
Financial Stability and Strong Local Receivables
Dana Gas maintained a healthy financial position at the end of Q1 2025, with a consolidated cash balance of AED 1.4 billion ($373 million), including AED 784 million ($214 million) at the Pearl Petroleum level. The company’s total debt remained stable at AED 1.045 billion ($285 million).
Collections from the KRI remained robust with a 100% collection rate, contributing to total collections of AED 257 million ($70 million) for the quarter. Receivables from the KRI dropped significantly to AED 246 million ($67 million), down from AED 334 million ($91 million) a year earlier — a sign of the region’s improving payment reliability and cooperation with Dana Gas.
In contrast, receivables from Egypt rose to AED 290 million ($79 million), up from AED 209 million ($57 million) in Q1 2024.
Strategic Outlook
With its increasing investments in the Kurdistan Region and sustained production performance, Dana Gas is poised to remain a central player in Iraq’s energy landscape. As demand for natural gas grows both regionally and globally, the company’s KRI operations are likely to serve as a model for efficient, large-scale gas development in emerging markets.
The upcoming milestones — including the delivery of KM250 and the development of Chemchemal field — mark a critical period of growth, not just for Dana Gas but also for the Kurdistan Region’s energy independence, economic development, and regional influence in the natural gas sector.
