Oman’s OQ Group posts revenue of RO 5.8 bn for H1 2023

MUSCAT, SEPT 5

OQ Group, the integrated global energy conglomerate of the Sultanate of Oman, has posted revenues of RO 5.888 billion for the first half of this year, versus earnings of RO 7.734 billion for the corresponding period of 2022.

Announcing its condensed consolidated interim financial statements for H1 2023, the wholly state-owned energy group – part of Oman Investment Authority (OIA) – said the decline in revenue was “mainly driven by a decrease in crude oil prices and decrease in oil price margins of its downstream (business). Furthermore, the geopolitical crises in Europe contributed to the increase of gas prices, which put European businesses in a stressed condition,” the Group further stated.

While revenue from the Group’s domestic operations totaled around RO 1.395 billion, the lion’s share of RO 4.492 billion came from its overseas operations.

Spanning 17 countries, OQ’s operations cover the entire value chain from exploration and production of oil and gas, refineries, and petrochemicals to marketing and distribution of end-user products reaching more than 60 countries worldwide. Total assets amount to around RO 12 billion in value presently.

Significantly, profit after tax plummeted to RO 424.767 million during the first half of this year, down from RO 822.461 million in H1 2022. Gross profit fell to RO 623.342 million this year, down from RO 982.303 million a year earlier.

Cost of sales was lower at RO 5.265 billion, down from RO 6.752 billion in H1 2022. Total comprehensive income for the period declined to RO 394.564 million, versus RO 965.942 million in H1 2022. Operating profit stood at RO 561.354 million, against RO 962.332 million in H1 last year.

In a significant revelation, the report referenced a Sale Purchase Agreement signed by OQ for partial divestment of 40 per cent interest in Block 60 and Block 48, following Board and shareholders’ approval.

“The transaction is now awaiting approval from regulatory authorities. The total sale consideration is RO 548 million subject to adjustment for the period between the effective date (1 January 2023) and the date of the Royal Decree. Management anticipates executing transaction before the end of 2023,” it added.