OQ Group’s H1 profit soars to RO 822 million

MUSCAT, NOV 6

OQ – the integrated global energy group of the Sultanate of Oman – has recorded a post-tax profit of RO 822.461 million for the six months ended June 30, 2022, up from RO 314.840 million for the corresponding period of 2021.

Announcing its condensed consolidated financial results for the first half of the year, the wholly state-owned energy group – part of Oman Investment Authority (OIA) – reported a near doubling of revenue to RO 7.734 billion during H1 2022, up from RO 3.979 billion a year earlier.

Cost of sales was similarly higher at RO 6.752 billion versus RO 3.577 billion in H1 2021.

Operating profit surged to RO 963.332 million this year, up from RO 405.389 million during H1 2021.

Earnings per share climbed to RO 0.239, up from RO 0.092 last year.

In comparison, OQ recorded consolidated revenue of $22.768 billion in 2021, compared to $14.006 billion in 2020, an increase of 63 per cent.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at $3.699 billion, an increase of 154 per cent as compared to 2020. The net profit amounted to $1.818 billion.

The strong performance comes as OQ prepares to shoulder a more robust role in the development of Oman’s green hydrogen economy.

It has been tipped to represent the government’s 20 per cent stake in all privately developed green hydrogen projects.

The company is already a partner in a portfolio of proposed ventures envisioning a total of 30 gigawatts of upstream generation capacity.

In 2021, OQ completed construction of the $6.9 billion Liwa Plastics project that annually produces 880,000 tonnes polyethylene and 300,000 tonnes polypropylene.

Other key OQ downstream projects include the $8.3 billion Duqm refinery with 230,000 barrels per day, a 50:50 JV with Kuwait Petroleum (Europe) BV that is expected to be commissioned in 2023.