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Earnings Report

Dana Gas

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Dana Gas PJSC reported strong Q1 2026 profitability growth, supported by higher production volumes, improved realised prices, and the recognition of previously unresolved receivables related to gas sales in the Kurdistan Region of Iraq (KRI).

The company continued benefiting from its diversified upstream gas operations across Egypt and the Kurdistan Region of Iraq while maintaining strong liquidity and operational resilience despite regional geopolitical disruptions.

2. Financial Performance Snapshot

  • Revenue: AED 531M (+59% YoY)

  • Gross profit: AED 347M (+119% YoY)

  • Profit before tax: AED 288M (+70% YoY)

  • Net profit: AED 270M (+71% YoY)

  • Earnings per share (EPS): AED 0.039 (vs AED 0.022 YoY)

3. Operational Highlights & Key Metrics

  • Average production:

    • Group production: 53.5K boepd

    • KRI production: 41K boepd

    • Egypt production: 11.3K boepd

  • Balance sheet & liquidity:

    • Total assets: AED 10.7B

    • Total equity: AED 9.60B

    • Cash & cash equivalents: AED 726M

    • Total borrowings: AED 737M

  • Receivables:

    • Trade & other receivables: AED 899M

    • Sum due following arbitration award: AED 250M

  • Operating cash flow: AED 199M

  • Capex spending: AED 111M

  • Dividend approved:

    • AED 176M

    • Equivalent to AED 0.0615 per share

4. Key Performance Drivers

  • Higher realised gas prices and stronger production volumes

  • Recognition of previously unresolved KRI gas sales receivables

  • Increased production contribution from Khor Mor operations in Iraq

  • Improved gross margins and operating leverage during the quarter

  • Continued contribution from Egypt and Kurdistan gas operations

  • Strong liquidity and lower net debt supporting financial stability

5. Outlook & Forward Guidance

  • Continued focus on expanding production from Khor Mor and Pearl Petroleum operations

  • Ongoing development drilling and gas processing expansion projects in Iraq and Egypt

  • Management continues monitoring regional geopolitical developments and supply chain conditions

  • Dana Gas remains focused on maintaining capital discipline, strong liquidity, and operational stability

  • The company expects continued growth in production capacity following completion of expansion projects at Khor Mor

6. 🧾 Investor Takeaway

Dana Gas delivered strong Q1 2026 growth with sharply higher revenue, profitability, and cash generation, supported by stronger production, improved gas prices, and recognition of KRI receivables, while maintaining strong liquidity and operational resilience across its regional gas operations.