Khor Mor Expansion Lifts Dana Gas Profit 48%
Gas producers and processing operators can see how a 50% capacity increase is feeding production and earnings.
Updated on Nov. 6, 2026 in Oil and Gas
Dana Gas reported a 48% year-on-year rise in net profit to Dh558 million ($152 million) for the first nine months of 2026, up from Dh379 million a year earlier. The gain reflects higher output in the Kurdistan Region of Iraq and Egypt, relevant to oil and gas operators tracking regional gas supply.
Why it matters
Higher production and stronger realised hydrocarbon prices drove the profit increase, giving operators a concrete read on how regional gas output is translating into earnings. The Khor Mor expansion lifted installed processing capacity by half, a structural change for producers and service providers tied to that asset base.
Nine-month revenue reached Dh1.38 billion against Dh935 million a year earlier, while EBITDA hit Dh917 million and collections totaled Dh843 million. Excluding a one-off adjustment, net profit stood at Dh382 million, and third-quarter production reached 61,400 boepd.
The players
Dana Gas
Sharjah-headquartered natural gas producer operating in the Kurdistan Region of Iraq and Egypt.
Pearl Petroleum
Joint venture developing gas fields in the Kurdistan Region of Iraq, which priced a $500 million secured bond in October 2026.
The details
Dana Gas attributed the profit increase to higher production in the Kurdistan Region of Iraq and Egypt. The KM250 expansion raised Khor Mor's installed gas processing capacity by 50 per cent to 750 MMscf/d, giving the asset more throughput to monetise. Corporate cash stood at Dh467 million ($128 million) as of September 30, and Egypt has had no overdue receivables since June 2026.
Timeline
First nine months of 2025: comparison period, net profit Dh379 million.
June 2026: Egypt receivables cleared, with no overdue balances since.
First nine months of 2026: net profit rose 48% to Dh558 million.
September 30, 2026: corporate cash stood at Dh467 million.
October 2026: Pearl Petroleum priced a $500 million secured bond.
Market Landscape
The 50 per cent processing capacity increase at Khor Mor places Dana Gas among regional gas producers scaling midstream throughput rather than relying solely on new wells. The Pearl Petroleum $500 million five-year secured bond shows that Kurdistan gas projects are still accessing debt markets to fund development.
Operators in gas processing and services should watch whether the expanded Khor Mor capacity sustains production gains into 2027. Companies that depend on Kurdistan and Egyptian gas flows should factor in the regional output momentum when planning contracts and capital commitments.
The takeaway
Rising throughput at existing processing assets can lift earnings without new fields, a lesson for operators weighing capacity investments. Track the first-quarter 2027 exploration well results as the next data point on whether production momentum holds.
What happens next
Dana Gas plans three additional exploration wells by the first quarter of 2027, a dated milestone operators can track against production targets.
Further reading
For broader context on how producers are scaling output, see the Oil and Gas section.
