OQ’s $731 Million Half-Year Net Profit: What This Means for Investors and the Future of Business in Oman
MUSCAT, OCT 20 – OQ Group, Oman’s globally integrated energy entity, has reported a robust performance for the first half of 2025, characterized by strong financial results and a notable increase in in-country value (ICV) contributions. This highlights the company’s growing importance in advancing Oman’s economic diversification objectives.
The energy conglomerate recorded a net profit after tax of $731 million, reflecting a 12% increase from $651 million in the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of 2025 stood at $1.6 billion, a slight decrease of 2% compared to $1.64 billion in H1 2024. The average realized oil price during this period was $74 per barrel, marking a 9.5% decline from $82 per barrel in 2024.
Despite the pressures of softer oil prices, OQ maintained its investment-grade status. Fitch Ratings assigned it a bbb- standalone credit profile, while S&P Global reaffirmed a BBB- rating with a stable outlook, demonstrating confidence in the group’s fundamental stability and disciplined portfolio management.
During this period, OQ’s contributions to Oman’s economy showed considerable strength. Total spending in contracts and procurement rose to $729 million, a 35% increase from $541 million in H1 2024. Local expenditures reached $565 million, up 34% from $421 million, underscoring the company’s dedication to enhancing domestic participation in its operations.
The group also saw a substantial increase in ICV retained value, reaching $238 million, a 37% rise compared to $174 million previously. Investments in small and medium enterprises (SMEs) amounted to $128 million, a growth of 29%, while spending directed towards national capacity-building initiatives increased by 30% to $44 million.
Ashraf Hamed al Mamari, Group CEO of OQ, commented that these results reflect both operational strength and commitment to national priorities. “Our performance showcases the robustness of our portfolio and the disciplined execution of our strategy, enabling us to achieve sustained growth and create lasting value driven by efficiency, diversification, and a clear vision for Oman’s energy future. Our commitment to local spending reinforces our dedication to national value,” he stated.
Analysts have noted that OQ’s impressive local spending and ICV achievements align closely with the goals of Oman Vision 2040, especially in strengthening domestic supply chains, enhancing SME participation, and fostering employment opportunities.
Although the modest decline in EBITDA indicates ongoing sensitivity to fluctuations in oil prices, the increase in profitability and procurement expenditures demonstrates OQ’s operational resilience and focus on value generation outside of hydrocarbons. The performance in H1 2025 solidifies the company’s position as a key driver of Oman’s economy, balancing solid financial returns with an expanding contribution to the Sultanate’s sustainable development agenda.
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OQ Group’s strong financial performance amidst declining oil prices highlights significant opportunities for businesses in Oman, especially in the SME sector and local supply chains. The 35% increase in local spending reflects a commitment to national economic diversification, encouraging smart investors to align with Oman Vision 2040 by leveraging this growth in in-country value (ICV) contributions. However, the continuing sensitivity to oil price fluctuations presents a risk that businesses must strategically navigate in their planning and investments.
