ERBIL, Kurdistan Region of Iraq - The Emirati Dana Gas company operating in the Khor Mor Gas Plant in the Kurdistan Region has generated $97 million revenue in the first quarter of the year, the company said in a press release on Wednesday. 

The company reported a decrease in profits compared to the same period in 2023, attributing this decline to the reduction in hydrocarbon prices relative to the first quarter of 2023.

Notably, the statement highlights a higher profit margin in the Kurdistan Region compared to Egypt.

The press statement revealed, “for the first quarter of 2024, the Company generated revenue of $97m and net profit of $38m, marking a reduction versus Q1 2023 earnings of $50m.”

The statement attributed this decline to lower realized hydrocarbon prices during the period compared to Q1 of 2023.

In early March, Egypt's Cabinet greenlit a draft law allowing the Minister of Oil and EGAS to ink a fresh Concession Agreement with Dana Gas, a pivotal step in the nation's energy sector consolidation. Parliamentary approval is expected soon, according to the press release.

The CEO of Dana Gas expressed his condolences regarding the attack on Khor Mor Gas Plant on April 26, which resulted in injuries and fatalities, stating, “it saddens me greatly to report the tragic fatalities and injuries following an incident at our Khor Mor field. We express our deepest condolences to the families.”

He attributed part of the profit decrease to the temporary suspension of company activities at Khor Mor following the strike, which is set to resume after concerted actions by the Government of Iraq and the Kurdistan Regional Government (KRG). These actions include firm commitments to substantially bolster security and fortify defenses at the Khor Mor site.

The company reported a 10 percent decrease in group production during Q1 of 2024 compared to the previous year, with a 2 percent increase quarter-on-quarter.

While the Kurdistan Region production remains steady, Egypt sees a 25 percent decline due to natural field declines.

Despite this, the company maintains a healthy cash position of $140 million, with significant contributions from the Kurdistan Region and Egypt, “the Company’s receivables in KRI stands at $91m and in Egypt at $57m at the end of the quarter.”

The Khor Mor gas field lies between the cities of Kirkuk and Sulaymaniyah, in a region administered by Kurdish authorities.

The four killed in the attack on Khor Mor field were all Yemeni nationals, according to Peshawa Hawramani, spokesperson for the Kurdistan Regional Government.

In January, two Katyushas targeted the gas field, causing a blaze but no casualties. At the time, pro-Iran Iraqi groups were attacking military bases hosting US forces in Iraq and neighboring Syria.