Latest news with #OQBaseIndustries
Zawya
19-05-2025
- Business
- Zawya
Oman: OQBI reports $33mln Q1 profit on strong revenue growth
MUSCAT: OQ Base Industries (OQBI) posted a robust 70.6% surge in net profit for the first quarter of 2025, reaching RO 12.8 million, up from RO 7.5 million in the same period last year. According to the company's unaudited financial results, the impressive performance was driven by a revenue increase of RO 9.2 million and a RO 3.3 million reduction in financing costs. These gains were partially offset by a rise in natural gas costs (RO 1.5 million), a RO 4.6 million provision for hypothetical gas, a RO 800,000 increase in operating expenses, and a RO 300,000 drop in financing income. CEO Khalid bin Khalfan al Asmi stated that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 17.3% to RO 24.7 million, compared to RO 21 million in Q1 2024. The improvement was largely attributed to higher revenues, although partially offset by additional gas and operating expenses. Group revenues reached RO 55.5 million during the quarter, marking a 19.9% rise from RO 46.3 million a year earlier. This increase was supported by stronger methanol prices, a 60.4% jump in ammonia sales volumes, and higher LPG sales, which added RO 3.1 million to the topline. Khalid bin Khalfan al Asmi, OQBI CEO Al Asmi highlighted the company's continued excellence in health, safety, security, and environmental performance. He noted that the methanol, LPG, and ammonia plants all received certifications for their environmental, health, safety, and quality management systems—underscoring OQBI's commitment to risk management and sustainability. Operationally, OQBI recorded a 7.5% rise in total methanol and ammonia production, reaching 389,000 tons in Q1 2025, compared to 362,000 tons a year ago. This was driven by high plant utilization rates of 102% for methanol and 101% for ammonia. LPG production, however, dipped by 3.4% to 84,000 tons due to a slight reduction in plant utilization. Al Asmi affirmed that OQ Base Industries exceeded its production targets for the quarter and is continuing on a strong growth trajectory. The company remains focused on operational efficiency, environmental stewardship, and delivering long-term value to shareholders while contributing to the national economy.
Times of Oman
17-05-2025
- Business
- Times of Oman
OQ Base Industries reports OMR12.8mn net profit
Muscat: The Board of Directors of OQ Base Industries OQBI) has approved the unaudited financial results for the three-month period ended 31 March 2025, demonstrating a robust performance across all key metrics. OQBI recorded a significant increase in net profit, marking a 70.6% rise compared to the same period last year. Net profit for Q1 2025 reached OMR12.8 million, up from OMT7.5 million in Q1 2024. In addition to this financial achievement, OQBI continues to uphold its Sharia-compliant status and remains committed to ethical and transparent operations. The company's strategic focus remains aligned with its objectives to deliver sustainable value to all stakeholders. OQBI maintained its focus on health and safety, achieving outstanding HSSE performance during the period. The methanol, LPG and ammonia plants successfully secured certifications across environmental, health, safety and quality management systems. These milestones reflect the company's dedication to risk management and sustainability, reinforcing its position as a responsible industrial leader. As Oman's only integrated producer of methanol, ammonia and LPG products, which include propane, butane, condensate and LPG (cooking gas), OQBI achieved a notable 7.5% increase in cumulative production for methanol and ammonia. Production for the three-month period ending 31 March 2025 reached 389Kt, up from 362 Kt in the same period in 2024. This growth resulted from exceptional plant utilisation rates of 102% for methanol and 101% for ammonia. LPG production, however, saw a marginal decrease of 3.4% to 84 Kt, compared to 87 Kt in Q1 2024, driven by slightly lower utilisation of the LPG plant at 102%. OQBI Group exceeded its production targets for Q1 2025, outperforming the business plan projections. Revenue for the Group grew by OMR9.2 million, or 19.9%, reaching OMR55.5 million for Q1 2025, compared to OMR46.3 million during Q1 2024. This increase was mainly driven by higher sales prices for methanol, increased ammonia sales volumes contributing OMR3.4 million representing a 60.4% increase and higher LPG sales volumes contributing OMR3.1 million. EBITDA increased by OMR3.6 million or 17.3%, reaching OMR24.7 million versus OMR21.0 million in Q1 2024. This increase was driven by revenue growth, partially offset by an OMR1.5 million increase in gas consumption charges at the Parent Company, an OMR4.6 million provision for notional gas at the subsidiary and an OMR0.5 million increase in other expenditures. Net profit rose by OMR5.3 million, or 70.6%, reaching OMR12.8 million. This was primarily due to the revenue increase of OMR9.2 million and finance cost savings of OMR3.3 million. These were partially offset by higher natural gas costs amounting to OMR1.5 million, notional gas provision of OMR4.6 million, higher operating expenses of OMR0.8 million and lower finance income of OMR0.3 million. Following a transformative year in 2024, OQBI continues its positive trajectory in 2025, driven by robust operational performance and a commitment to sustainable and transparent growth. OQBI remains focused on operational efficiency, HSSE excellence and delivering sustainable growth to meet both shareholder and national economic objectives.
Zawya
12-05-2025
- Business
- Zawya
Oman: Salalah Port aims to become liquid trading hub
MUSCAT: Having already established itself as a major player in the handling of container and dry bulk commodities, Oman's Port of Salalah — one of the busiest maritime gateways in the Middle East — is now eyeing the potential to serve as a prominent liquid hub as well. Fuelling this potential is the growth of an expanding petrochemicals industry in and around Salalah, with significantly volumes of methanol, LPG and fuel products currently being handled at the maritime port overlooking the Arabian Sea and Indian Ocean beyond. A sizable increase in wet bulk volumes is also anticipated when a major new cluster of petrochemical plants materialises at the adjoining Salalah Free Zone in the coming years. Commenting on the outlook for the growth of a liquid hub at Salalah Port, Braik Musallam al Amri, Chairman of Board of Directors, Salalah Port Services Co SAOG, said: 'Interest in wet bulk is encouraging and Salalah's potential as a hub for liquid trading and handling is becoming more solid. This is driven by the well-developed infrastructure in place and the established know-how that the port built over the years. The company is working with prospective customers on opportunities to develop new business in the Port.' Currently, all of the volumes of methanol and LPG exported through Salalah Port are generated by OQ Base Industries (OQBI), the majority Omani state-owned integrated petrochemicals complex operating in the free zone. Output of methanol and LPG from the plant hit record levels last year. Seeking to capitalise on the presence of ammonia, methanol and LPG as feedstock in Salalah, Al Baleed Petrochemical Company — an Oman-based firm — is currently in the early stages of developing a petrochemicals park in the free zone. The cluster is envisaged as an integrated petrochemicals complex that will process these commodities into an array of high-demand chemical products. The park is proposed to host modularised units focused on, among other commodities, propane dehydrogenation (PDH); maleic anhydride — a key intermediate in the production of biodegradable plastics; Formic Acid (85 per cent concentration), Acetic Acid and Hydrogen Peroxide (35 per cent and 50 per cent concentrations). On the dry bulk front, however, Salalah Port continued to post strong gains, bolstered by its growing importance as a hub for locally mined minerals like gypsum and limestone. General cargo throughput climbed 11 per cent to 6.4 million tonnes during Q1 2025, up from 5.8 million tonnes in Q1 2024. The increase was driven by an uptick in the demand for gypsum and limestone for export. 'Dry Bulk (limestone and gypsum) demand is strong and traders are exploring new markets, which will strengthen our forecasts once confirmed. With port equipment capacity reinstated, customers are now more confident to book larger parcels, which puts the port on track to meet volume forecasts for this year,' said Al Amri in the Director's Report for Q1 2025. However, container volumes declined 6 per cent to 823K TEUs in the first quarter of this year, compared to 878K TEUs a year ago — a dip attributable primarily to ongoing disruptions in the Red Sea. 'The Red Sea situation remains unchanged and uncertainty extended well into Q2 2025. However, the longer term outlook remains positive given ramping up of the Gemini network and the interest from Hapag Lloyd to divert business to Salalah. This is seen on both the transshipment and import/export fronts,' the Chairman added.
Observer
09-05-2025
- Business
- Observer
Salalah Port aims to become liquid trading hub
MUSCAT, MAY 9 Having already established itself as a major player in the handling of container and dry bulk commodities, Oman's Port of Salalah — one of the busiest maritime gateways in the Middle East — is now eyeing the potential to serve as a prominent liquid hub as well. Fuelling this potential is the growth of an expanding petrochemicals industry in and around Salalah, with significantly volumes of methanol, LPG and fuel products currently being handled at the maritime port overlooking the Arabian Sea and Indian Ocean beyond. A sizable increase in wet bulk volumes is also anticipated when a major new cluster of petrochemical plants materialises at the adjoining Salalah Free Zone in the coming years. Commenting on the outlook for the growth of a liquid hub at Salalah Port, Braik Musallam al Amri, Chairman of Board of Directors, Salalah Port Services Co SAOG, said: 'Interest in wet bulk is encouraging and Salalah's potential as a hub for liquid trading and handling is becoming more solid. This is driven by the well-developed infrastructure in place and the established know-how that the port built over the years. The company is working with prospective customers on opportunities to develop new business in the Port.' Currently, all of the volumes of methanol and LPG exported through Salalah Port are generated by OQ Base Industries (OQBI), the majority Omani state-owned integrated petrochemicals complex operating in the free zone. Output of methanol and LPG from the plant hit record levels last year. Seeking to capitalise on the presence of ammonia, methanol and LPG as feedstock in Salalah, Al Baleed Petrochemical Company — an Oman-based firm — is currently in the early stages of developing a petrochemicals park in the free zone. The cluster is envisaged as an integrated petrochemicals complex that will process these commodities into an array of high-demand chemical products. The park is proposed to host modularised units focused on, among other commodities, propane dehydrogenation (PDH); maleic anhydride — a key intermediate in the production of biodegradable plastics; Formic Acid (85 per cent concentration), Acetic Acid and Hydrogen Peroxide (35 per cent and 50 per cent concentrations). On the dry bulk front, however, Salalah Port continued to post strong gains, bolstered by its growing importance as a hub for locally mined minerals like gypsum and limestone. General cargo throughput climbed 11 per cent to 6.4 million tonnes during Q1 2025, up from 5.8 million tonnes in Q1 2024. The increase was driven by an uptick in the demand for gypsum and limestone for export. 'Dry Bulk (limestone and gypsum) demand is strong and traders are exploring new markets, which will strengthen our forecasts once confirmed. With port equipment capacity reinstated, customers are now more confident to book larger parcels, which puts the port on track to meet volume forecasts for this year,' said Al Amri in the Director's Report for Q1 2025. However, container volumes declined 6 per cent to 823K TEUs in the first quarter of this year, compared to 878K TEUs a year ago — a dip attributable primarily to ongoing disruptions in the Red Sea. 'The Red Sea situation remains unchanged and uncertainty extended well into Q2 2025. However, the longer term outlook remains positive given ramping up of the Gemini network and the interest from Hapag Lloyd to divert business to Salalah. This is seen on both the transshipment and import/export fronts,' the Chairman added.
Zawya
06-03-2025
- Business
- Zawya
Oman's OQBI achieves record production in 2024
MUSCAT: OQ Base Industries (SFZ) SAOG (OQBI), the majority Omani state-owned integrated producer of methanol, ammonia and LPG, achieved record output in 2024, capping a year of significant milestones that also included a successful Initial Public Offering (IPO). Accordingly, OQBI posted a 19.7-per cent uptick in revenues, which climbed to RO 234.8 million last year, up from RO 196.2 million in 2023. Driving this growth was a significant rise in earnings from methanol exports, which jumped 44.4 per cent to RO 111.6 million, up from RO 77.3 million in 2023. Net profit however declined 14.9 per cent to RO 40.4 million, compared to RO 47.5 million in 2023, primarily due to a 50.4-per cent increase in the notional provision of rich gas as feedstock, among other factors. OQBI Board Chairman Ali al Lawati described 2024 as a 'period of significant transformation and growth' for the company. 'We adeptly navigated various challenges, seized emerging opportunities, and delivered exceptional results across all areas of our operations.' 'A key milestone in our journey was the successful completion of an Initial Public Offering (IPO), where 49 per cent of our share capital was offered to the public. The shares commenced trading on the Muscat Stock Exchange (MSX) on December 15, 2024, marking a pivotal moment in our corporate history,' he stated in the company's Board of Directors' report for the year. Significantly, production targets were exceeded across all product streams in 2024. Methanol and ammonia output jumped to 1,538k MT in 2024, up from 1,168k MT a year earlier. The increase was due to effective plant utilisation – 106 per cent for methanol and 113 per cent for ammonia. The LPG plant, on the other hand, achieved 117 per cent utilisation, contributing to a 8.5-per cent increase in LPG output. Production of LPG products – propane, butane, condensate and LPG (cooking gas) – rose to 364k MT in 2024, up from 336k MT a year earlier. Commenting on the company's operational performance, OQBI CEO Khalid al Asmi added: 'Production at the methanol and ammonia plants has reached its highest level since the commissioning of the plants in October 2024. Furthermore, the LPG plant has surpassed its annual nameplate production of 350,000 MT for the first time in our history.' Located in Salalah Free Zone, adjoining the Port of Salalah, OQBI – part of OQ Group – owns and operates an integrated complex of three advanced plants with a combined nameplate production capacity of 1,816 ktpa. The plants process rich and lean natural gas feedstock supplied under long-term agreements with the wholly state-owned gas shipper, the Integrated Gas Company (IGC), through the gas transmission network. While part of the LPG (cooking gas) is sold domestically in Dhofar Governorate, the rest of OQBI's products are sold pursuant to long-term, arm's-length exclusive take-or-pay offtake agreements with OQ Trading for export to end markets, principally in Asia and the MENA region and, to a lesser extent, Europe and Africa. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
