By Conrad Prabhu — MUSCAT: APRIL 2 - Oman LNG, which operates a three-train natural gas liquefaction plant at Qalhat on the Sultanate’s South Al Sharqiya coast, posted revenues of $1.925 billion in 2016, down from $2.612 billion a year earlier, reflecting a protracted global downturn weighing down international gas markets. Net income after tax (NIAT) slumped to $566 million, down from $965 million in 2015, the majority Omani government-owned company said in its 2016 Annual Report.
The decline, both in gross revenue and NIAT, follows a pattern that began in 2014 when international oil prices began a steep downward spiral. From a high of $4.491 billion achieved in 2013 just before the crisis erupted, revenues ticked down to $4.075 billion a year later, slumping to $2.612 billion in 2015 before ending at $1.925 billion last year. Net income after tax (NIAT) also dropped year on year from a peak of $2.018 billion in 2013 to $1.768 billion a year later, tumbling to $965 million in 2015 before declining to $566 million last year.
Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas who is also Chairman of the Board of Directors of Oman LNG, commented: “Oman LNG ended 2016 at an intersection of national and international occurrences that impact diverse aspects of our operation. In the circumstances, the export revenue loss was somewhat offset by price stabilization across global markets in the latter half of 2016 following the harsh downturn of the previous two years.”
“An additional contribution to the company’s balance sheet,” he further stated in the Chairman’s Message, came from efficiencies obtained across the board by a marriage of intelligent management and productivity-enhancing new technologies.”
Oman LNG Chief Executive Officer Harib al Kitani noted that the global LNG market is expected to remain constrained for some time. “Although gas prices will not see the highs of 2014 for a long time to come, it is possible, to go by a consensus of leading forecasts, that we may have entered a steady, if modest, rising price trajectory into the next decade. Against this backdrop, revenues for 2016, though unspectacular, need not impede our long-term aspirations at Oman LNG,” he noted.
LNG production totaled around 8.5 million tons per annum (mtpa) last year, versus an installed capacity of 10.4 mtpa across all three trains.
A total of 133 cargoes (91 from Oman LNG and 42 from Qalhat LNG) were despatched from Qalhat during the year. They included two spot cargoes to regional destinations Kuwait and Jordan for the first time. Production of natural gas liquids (NGLs), a byproduct of LNG production, totaled 254,029 tonnes last year. This output was exported in a total of 39 cargoes.
Oman Observer is now on the WhatsApp channel. Click here
