DANA GAS (DANA) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 reached $34m (AED 124m), up 3% year-over-year, driven by improved gross profit margins despite lower realized prices and temporary production suspension in April.

• H1 2024 net profit was $72m (AED 263m), down 13% compared to H1 2023, with revenue at $190m (AED 696m) versus $222m (AED 814m) in the prior year period.

• KRI operations showed resilience with a 3% production increase in H1 2024, while Egypt production declined 25% due to natural field decline.

• Collections improved to $152m (AED 557m) in H1 2024, up from $106m (AED 389m) in H1 2023, aided by a new payment mechanism in KRI.

• The KM250 expansion project remains suspended following a security incident, with efforts ongoing to establish a new timeline.

Financial highlights

• Q2 2024 revenue was $93m, down from $100m in Q2 2023; H1 2024 revenue was $190m, down from $222m in H1 2023.

• Q2 2024 EBITDA was $54m, 4% lower year-over-year; H1 2024 EBITDA was $115m, down from $130m in H1 2023.

• Gross profit for H1 2024 was $94m, down from $103m in H1 2023.

• Realized prices for condensate and LPG dropped 20% and 9% respectively in H1 2024.

• Cash position as of June 30, 2024, was $140m (AED 513m), including $110m (AED 403m) at Pearl Petroleum JV.

Outlook and guidance

• Positive outlook for 2024, supported by high commodity prices despite global economic and geopolitical uncertainties.

• Company remains committed to reinstating dividend payments when liquidity allows.

• New Egypt concession agreement expected to extend asset life and enable increased investment and drilling.

• Ongoing efforts to resume KM250 construction and bring new production streams online to enhance capacity.

• Ongoing consolidation in Egypt expected to enhance production and operational efficiency.