More earnings pour in…

DANA GAS-

Sharjah’s Dana Gas saw its net income fall 7% y-o-y to AED 147 mn in 3Q 2024, according to its financials (pdf). The company’s revenue stood at AED 352 mn in 3Q, down 7.7% y-o-y on the back of lower production in Egypt, which fell 24% y-o-y to an average 15.9 mn of barrels of oil equivalent (MMboe), Dana Gas said.

On a 9M basis, Dana Gas recorded a net income of AED 410 mn, down 11.1% y-o-y from the same period last year due to lower revenues, which also fell 12.3% y-o-y, standing at AED 1 bn in 9M. The dip in revenues was attributed to lower production and realized prices in Egypt. However, a 3% y-o-y increase in production in Kurdistan partly offset the decline.

Dana gas now has a timeline for the completion of KM250: After terminating the EPC contract with former contractor Enerflex for the Khor Mor gas plant expansion in Kurdistan, KM250, the Dana Gas-led consortium Pearl Petroleum is poised to resume the project soon with full direct control of the plant’s construction, with first gas output slated to be produced in 2Q 2026.

Pearl has fresh funding to finish the project: Having secured USD 350 mn from a bond issuance in October, Pearl Petroleum will use the proceeds to complete the project and cover any additional expenditures, Dana Gas said in an earnings release (pdf)

Looking ahead, Dana Gas plans to extend its operation in Egypt by investing USD 100 mn to increase production. However, the investment plan is subject to the Egyptian government releasing USD 24 mn from an outstanding USD 59 mn receivables balance, with the plan to be implemented “as soon as the receivables are paid down,” Dana Gas CEO Richard Hall said. Hall also noted that the company is “one of the earliest UAE investors in Egypt, [and] has contributed over USD 2 bn to the country’s energy sector since 2007.”

The investment includes the drilling of 11 new wells, and is expected to add 80 bn cbf of gas reserves, the company said in its earnings release. The company claims the increased gas supplies from the project would save “over USD 1 bn for Egypt’s economy, reducing reliance on imported LNG and mazut for power generation.”

Also in Dana Gas’ pipeline: The company aims to resume the distribution of its annual dividends next March, having reduced its corporate debt during 9M 2024, Hall said.

ABU DHABI AVIATION-

Abu Dhabi Aviation turned to the black in 3Q 2024, reporting a net income of AED 198.4 mn from a loss of AED 69.1 mn in the same period last year, according to its financials (pdf). The company's revenues climbed 30.3% y-o-y to AED 1.9 bn.

On a 9M basis: The company saw its net income increase 2,753.8% y-o-y to AED 920.6 mn, up from AED 32.3 mn in the same period last year. The company's revenues also rose 6% y-o-y to AED 5.1 bn. The company’s performance was supported by the “improved profitability” of several of its subsidiaries, as well as the “post acquisition contribution of ADA legacy group,” according to a company earnings release(pdf).

ADNH CATERING-

ADNH Catering’s net income declined by 46.7% y-o-y to AED 38.2 mn in 3Q 2024, according to its financials (pdf). The company’s revenues increased 39.5% y-o-y to AED 407.3 mn in this quarter. The catering firm saw its net income decline by 34.2% y-o-y to AED 139.1 mn and its revenue rise by 4.3% y-o-y to AED 1.4 bn during the fiscal year running from 1 October 2023 to 30 September 2024.

This twelve-month performance was affected by the termination of a client contract that was deemed not commercially viable, leading to an AED 203 mn decline in revenue, according to an earnings release (pdf). Meanwhile, the parent company, ADNH, combined the accounts of ADNH Catering and ADNH Compass under a common control method which increased revenues by AED 170 mn. It also took on new projects in the industry and private health sectors, leading to an organic growth of AED 93 mn.

The decline in the company’s net income in FY 2023-2024was also caused by the release of a one-off provision in the 2023 period and the mobilization costs incurred due to awarding several new contracts.

REMEMBER- ADNH Catering’s parent company ADNH saw its net income fall 38.9% y-o-y to AED 30.2 mn in 3Q 2024.