MUSCAT, JULY 15
In the maiden report of its financial performance since its listing on the Muscat Stock Exchange (MSX) earlier this year, Omani drilling services company Abraj Energy Services, a subsidiary of OQ, posted revenue of RO 33.3 million for Q1 2023, which was 3% lower than earnings of RO 34.4 million for the corresponding quarter of 2022.
Profit after tax slumped 60% to RO 2.6 million, down from RO 6.4 million a year earlier. Ayad al Balushi, Chairman of the Board of Directors, attributed the decline to an increase in operating cost as a result of major planned maintenance activities. Finance cost had also increased by 35% due to higher benchmark rate of USD LIBOR rate in Q1-2023 compared to Q1 2022, he stated in the Chairman’s Report for the quarter.
During Q1-2023, the Drilling and Workover segment encountered a 6.5% decrease in revenue, reaching RO 29.2 million, as compared to Q1 2022. Despite no changes in the number of rigs and hoists, the decline primarily stemmed from planned major maintenance activities conducted on specific rigs. Consequently, profit after tax for this segment declined significantly by 61.8%, settling at RO 2.4 million, compared to Q1-2022's RO 6.2 million.
In contrast to the overall trend, the Well Services and Others segment witnessed remarkable growth, with revenue soaring by 30% to RO 4.1 million in Q1-2023, as compared to Q1 2022's RO 3.2 million. The substantial increase was primarily driven by the segment's fracturing business. Consequently, profit after tax for this segment experienced a marginal rise of 4.7%, reaching RO 223,000, up from Q1-2022's RO 213,000.
Abraj Energy Services formally listed on the MSX on March 14 this year, becoming the first local energy firm to be listed on the Omani bourse after a successful Initial Public Offering (IPO). The company’s public subscription raised more than RO 790 million, representing an eight-fold oversubscription – the largest of its kind in Oman’s history.
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