OQBI to distribute RO 32.7m in dividends

MUSCAT: OQ Base Industries (OQBI) has announced total dividends of RO 32.7 million for 2024, reflecting the company’s strong financial performance and commitment to shareholder returns. The dividends will be distributed in two phases: RO 24.5 million in January 2025, followed by RO 8.2 million in April 2025.OQBI’s Chief Financial Officer, Ahmed al Baraami, revealed that the expected yield for 2024 would range between 8.5% and 8.9%, depending on the share price. “This dividend policy demonstrates our confidence in maintaining robust cash flows and aligns with our strategy to deliver sustainable growth,” Al Baraami said.The company plans to achieve at least 5% annual profit growth in 2025 and 2026, driven by disciplined financial management and targeted investments. “From 2027 onwards, we aim to distribute any surplus cash not allocated to core operations, growth projects, or acquisitions,” Al Baraami added.Al Baraami highlighted OQBI’s strong track record, citing consistent EBITDA margins and revenue growth. “Our H1 2024 EBITDA stood at RO 39 million, with a margin of 37.4%. In 2023, we achieved RO 84.6 million in EBITDA, maintaining a margin of 43.1% despite market volatility,” he noted.The company’s 2022 performance was particularly impressive, with adjusted EBITDA of RO 92.7 million and a 43.0% margin, driven by robust liquefied petroleum gas (LPG) sales and stringent cost controls. Total revenues in 2022 reached RO 215.6 million, up from RO 154.2 million in 2021, reflecting a surge in LPG revenues.OQBI maintained its momentum in 2023, generating RO 196.2 million in revenues. Methanol and ammonia contributed RO 141.0 million, while LPG revenues rose to RO 79.8 million.In H1 2024, total revenues reached RO 104.3 million, with methanol and ammonia contributing RO 68.3 million and LPG adding RO 36.0 million.Al Baraami emphasised OQBI’s disciplined capital allocation and steady cash flows as the foundation for its premium returns. “Our strategy focuses on operational efficiency, market responsiveness and maximising shareholder value,” he stated.The company’s dividend policy, coupled with its robust financial performance, positions OQBI as a reliable and attractive investment destination. As it targets continued growth and sustainable returns, OQBI remains committed to driving value for investors and contributing to Oman’s economic development.