OQEP’s RO 941 Million Profit in 2025: What It Signals for Investors and Business Growth in Oman
MUSCAT: OQ Exploration and Production (OQEP) reported audited revenues of RO 1.2 billion for the financial year ending December 31, 2025, with an impressive EBITDA of RO 941 million, reflecting a strong margin of 81 percent. Adjusted cash flow from operations rose by 7.5 percent to RO 540.5 million, while return on operating capital reached 51 percent, highlighting the company’s operational efficiency despite a softer pricing environment.
Chief Executive Officer Mahmoud bin Abdullah al Hashmi emphasized that the results showcased disciplined cost management and resilient performance, even as average oil prices fell by 12.5 percent during the year. Growth in oil and condensate sales volumes, alongside stable gas production, contributed to a return on capital employed exceeding 50 percent.
Operationally, OQEP enhanced its asset base significantly. The Basat C oil processing facility in Block 60 was expanded, increasing crude processing capacity to 95,000 barrels per day and water handling capacity to over 800,000 barrels per day. Additionally, the Basat power plant was commissioned and connected to the national grid, improving supply stability while reducing operating costs and carbon emissions.
By year-end, construction on the Marsa LNG bunkering project had progressed beyond 39 percent. Long-term gas sales agreements were secured for Blocks 65 and 10 to support this initiative. The company also signed four exploration and production sharing agreements, including extensions for Blocks 47 and 48 and a new partnership with Genel Energy in Block 54, with enhanced fiscal terms extended through 2050.
Average production stood at 224,000 barrels of oil equivalent per day, comprising 54 percent oil and condensate and 46 percent gas.
OQEP maintained a strong focus on shareholder returns, distributing RO 275 million in dividends and repurchasing 27.5 million shares under its buyback program. A proposed fourth-quarter dividend of 7.23 baisa per share awaits approval at the upcoming Annual General Meeting.
Looking forward, the company plans to increase production capacity to approximately 300,000 barrels of oil equivalent per day by 2030. This growth will be funded through internal cash flows and prudent borrowing, while keeping net debt below 1.5 times EBITDA and targeting dividend payouts of 25–35 percent of operating cash flows.
Special Analysis by Omanet | Navigate Oman’s Market
OQEP’s strong financial and operational performance amid lower oil prices underscores Oman’s resilience in hydrocarbon production and fiscal discipline, presenting a stable outlook for businesses tied to the energy sector. The expansion of processing capacity, LNG bunkering advancements, and strategic partnerships signal significant growth opportunities for investors focused on energy infrastructure and diversification. Smart investors should monitor OQEP’s production ramp-up and fiscal management as indicators of Oman’s broader market stability and potential for long-term returns.
