MUSCAT, APRIL 24
Spot market and contract optimisation deals buoyed Oman LNG’s earnings by more than $1 billion last year in line with majority state-owned company’s revamped marketing strategy that emphasizes the importance of agility in capitalizing on market opportunities.
Total revenue for the year, however, declined 21% to $4.9 billion, down from $5.774 billion in 2022. Net Income After Tax (NIAT) totaled $1.5 billion, down from $1.970 billion in 2022.
Oman LNG Chief Executive Officer Hamed al Naamany stressed the “robust” financial results of the company, bolstered in particular by its flexible and agile marketing capabilities.
“Our track record includes 173 LNG cargos deliveries (combined from Oman LNG and Qalhat LNG), underscoring the scale and efficiency of our operations. In terms of financial performance, we maintained robust results with a total revenue of $4.9 billion and a Net Income After Tax (NIAT) of $1.5 billion,” Al Naamany stated in the company’s newly published 2023 Annual Report.
“Notably, we achieved a second consecutive record-breaking financial performance, highlighting the strength and reliability of our long-term agreements. Meanwhile, Qalhat LNG (QLNG) allocated a total revenue of US$2,353 million in 2023, with an impressive dividend yield of 17% from the invested portfolio. Oman LNG remained active in the spot market and contracts optimization leveraging increased agility and deals that yielded over $ 1 billion in upside.”
Of the 173 cargoes of LNG delivered during 2023, 6% constituted spot sales, while the balance 94% comprised shipments based on long-term contracts. A further 31 cargoes of natural gas liquids (NGLs), a byproduct of LNG production, were delivered to domestic offtakers during the year.
Talal al Awfi, Chairman – Oman LNG, said the company “set a benchmark with a production above the nameplate capacity of 11.4 million metric tonnes per annum of LNG in 2023”.
A notable highlight of the year, he said, was the mandate granted by shareholders to Oman LNG’s management team to to facilitate the extension of the company beyond 2024.
“As a part of this mandate, the Ministry of Energy and Minerals supported Oman LNG and Qalhat LNG’s marketing campaign for 10 and 4 years respectively. In pursuance, Oman LNG was able to secure sales term commitments of up to 10.4 mtpa through term sheet agreements with a number of buyers and shareholders in Asia and European markets. Moreover, in October 2023, Oman LNG marked a strategic milestone by signing Oman LNG’s shareholders’ agreement, Qalhat LNG’s shareholders’ agreement, as well as the gas supply agreement between Oman LNG and Integrated Gas Company (IGC) for the supply of feed gas to Oman LNG until 2034,” he added in the Chairman’s Message.
Oman Observer is now on the WhatsApp channel. Click here
