The UAE-based Dana Gas reported a 43% year-on-year (YoY) drop in full-year (FY) 2022 net profit to $182 million from $317 and warned of challenges related to collections in Kurdistan and Egypt operations. 

The result missed the analysts’ mean profit estimates of $223.50 million as compiled by data provider Refinitiv.

Dana, which is the Middle East's largest private sector natural gas company, said excluding other income and impairments, adjusted net profit rose 53% to $196 million compared with $128 million in 2021.

Revenue rose 17% to $529 million due to higher realised prices and production output in the Kurdistan Region of Iraq (KRI).

Operational costs decreased by 5% to $57 million in 2022 compared to $60 million in 2021.

Chief Executive Patrick Allman-Ward said the outlook for 2023 remained encouraging, especially if oil prices remain at current levels.

"However, there remains various challenges, specifically with collections in the Kurdistan Region of Iraq (KRI) and foreign currency withdrawals in Egypt."

As of 31 December 2022, Dana's Egypt and KRI receivables rose to $30 million and $64 million respectively. "The increase in the KRI is a result of delays in the payment of invoices. In Egypt, the macro-economic situation has resulted in restrictions in repatriation of US dollars," the company said in a statement on Abu Dhabi's ADX exchange.  

(Reporting by Brinda Darasha; editing by Seban Scaria)