ERBIL, Kurdistan Region - UAE-based Dana Gas announced on Friday a 48 percent increase in net profit during the first nine months of 2026, driven partly by higher gas production at the Khor Mor field in the Kurdistan Region following the completion of a major expansion project last year.
In a statement, the company said its net profit reached $152 million during the January-September period, compared with $103 million in the same period last year. Revenue also increased by 48 percent to $377 million.
However, the results included a one-off gas metering adjustment worth $48 million. Excluding the adjustment, net profit stood at $104 million, only slightly higher than the $103 million reported a year earlier.
Dana Gas said production in the Kurdistan Region averaged 42,300 barrels of oil equivalent per day (boepd) during the nine-month period, up five percent from 40,350 boepd a year earlier.
Production growth accelerated in the third quarter, reaching 47,550 boepd, an 18 percent increase compared with the same quarter in 2025.
The increase followed the completion of the KM250 expansion project at Khor Mor in October 2025, which boosted the field's installed gas processing capacity by 50 percent to 750 million standard cubic feet per day (MMscf/d).
"In the KRI, Dana Gas and its partners continued to benefit from higher production and gas sales volumes at Khor Mor following the completion of the KM250 expansion in October 2025," the company said.
It added that higher utilisation of the expanded facilities during the third quarter contributed to its improved financial performance.
Dana Gas also reported progress in expanding gas supplies beyond the Kurdistan Region. In August, the company began initial deliveries to the Taza power station in Kirkuk under an agreement to supply 100 MMscf/d to Iraq's electricity ministry. The move had been censored by Erbil, which claimed that the decision breached the contractual obligations of the company.
The company said deliveries to the station resumed earlier this week, without providing further details about the interruption.
Meanwhile, planned maintenance at Khor Mor was completed ahead of schedule in October, following a brief shutdown that temporarily reduced production.
Dana Gas also announced progress at the Chamchamal gas field, where its consortium, Pearl Petroleum, is implementing a $160 million appraisal and early development programme.
Drilling is expected to begin before the end of 2026, with initial gas production targeted for early 2028. The company said long-term agreements are already in place to supply up to 170 MMscf/d to industrial customers in the Kurdistan Region.
"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," Dana Gas CEO Richard Hall said.
Despite the improved production figures, outstanding payments from the Kurdistan Regional Government (KRG) remain an issue.
Dana Gas said it collected $156 million from the Kurdistan Region during the first nine months of 2026, while outstanding trade receivables stood at $189 million at the end of September.
"We continue to engage constructively with the KRI to improve collections and reduce outstanding receivables," Hall said.
Dana Gas operates in the Kurdistan Region through Pearl Petroleum, alongside its partners. The consortium's gas production plays a key role in supplying power stations and supporting electricity generation in the Region.
