MUSCAT, SEPT 5
OQ Gas Networks (OQGN), the state-owned gas transporter that announced its intention to float a 49 per cent stake on the Omani bourse later this year, is strongly optimistic about its financial performance going forward
The company anticipates issuing a dividend for the fiscal year ending on December 31, 2024. This dividend will be determined based on the greater of two factors: 90 per cent of the company's profits for the year ending on December 31, 2024, or a five per cent increase over the total dividends paid in 2023.
Speaking at Monday’s ‘Intention to Float’ event, Khalid al Qassabi, Vice President of Finance at OQGN, said the company’s confidence is also driven by the solid financials it has achieved over the past few years, despite the disruption caused by the pandemic.
OQGN – part of OQ Group - is mapping a roadmap for dividend payouts in the financial landscape of 2023 and beyond. The corporation has announced its dividend intentions, stating that the first payout of RO 33 million will be made around January 2024 for the first nine months of 2023. Following that, a second dividend payout of RO 11 million is scheduled in April 2024 for the fourth quarter of 2023. Looking ahead to 2025, OQ intends to pay dividends equal to 90 per cent of profits for the fiscal year ending December 31, 2025, or a five percent increase above dividends paid in 2024.
Commenting on the stock split announced recently, Mansoor al Abdali, Managing Director at OQGN, said the paid up capital of the company is now around RO 433 million. As against an earlier share price of RO 1 per share, the stock split now makes OQGN’s shares more affordable to small or retail investors during the float.
However, it is important to note that the company's ability to make these dividend payments is dependent on several circumstances. This includes the availability of distributable reserves, ongoing capital spending plans, and other financial requirements in the coming quarters, all of which are subject to required clearances, officials added.
On Monday, parent group OQ SAOC said it intends to, directly and indirectly through Oman Energy Trading Company Limited (OETCL) and Oman Oil Services Limited (OOSL), offer up to 49 per cent of the share capital of OQ Gas Networks (under transformation).
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