SMN Power Holding
Strong framework
SMN Power Holding’s Barka II and Al Rusail plants clocked a high level of power and water availability underscoring the strength of its operations
SMN Power Holding through Barka II and Al Rusail plants achieved excellent operational performance, with both plants demonstrating a high level of power and water commercial availability during the year 2014. The business model of both the project companies held by SMN Power Holding Company (SMN Barka and Al Rusail) is based on a strong contractual framework with solid and reliable partners. Further, back-to-back contracts significantly reduce the risks over a long-term period.
The company over the year 2014 dispatched an aggregated net power volume of 4,913 GWh and a total volume of 42, 679,362 m3 of potable water. The increase in power volume is linked to higher dispatch at Barka II compared to the previous year. However, there is no impact on the gross profit of the company since financial performance is primarily linked to availability. Barka II commercial availability for the year was 91.7 per cent for power and 94.6 per cent for water. At Al Rusail, the power commercial availability during 2014 was 89.2 per cent. Omanisation is a principle the company embraced and is implementing since its inception. The management believes in a strong internal control system. Control environment has been further reinforced over the year 2014 by continuously enhancing the organisation of the company and further implementing policies and procedures on key processes. The key achievements of the company include an excellent health and safety (H&S) performance with no lost time accident (LTA) in 2014. The management of the company remains confident in 2015, thanks to the robustness of the power sector in the Sultanate, the increasing performance of the plants over the past two years.
Ahli Bank
Banking on efficiency
Ahlibank has continued on its consistent and fast-paced growth trajectory across all verticals
The financial results for the year ended December 31, 2014 reflects Ahlibank’s growth in key areas in line with the bank’s business plan and an increase in core earnings. Net profit increased by nine per cent, and went up to RO25.1mn, as compared to RO23mn in 2013. Total assets stood at RO1,645mn from RO1,339mn last year – an increase of 23 per cent. Loans and advances portfolio increased by 26 per cent, to RO1,389mn in 2014 from RO1,105mn and the loan book continues to be of a very high quality as reflected in our NPL ratio of 0.97 per cent in 2014 (2013: 0.97 per cent). Customers’ deposits grew by 13 per cent from RO955mn to RO1,076mn in line with the bank’s strategy to build a stable low cost deposit base. Continued focus on enhanced productivity and business diversification resulted in an improvement in the operating income by 11 per cent (RO51.6mn in 2014, as compared to RO46.6mn in 2013). Operating expenses (excluding loans and investments impairment net of recoveries) were controlled at RO17.7mn, due to prudent cost spends resulting in a best in class cost to income ratio of 34.2 per cent. Equity increased to RO200mn in 2014, from RO185mn in 2013 (an eight per cent increase).
The bank’s retail lending went from strength to strength, for both conventional and Islamic customers, through an expanded product offering. The bank has over the past year, concentrated on a segmented offering through special packages to companies and ministries by having road shows. In addition, it has tied up with real estate developers to offer under construction property financing at competitive pricing to cater to first time home owners.
Ahlibank’s corporate banking brand continued to grow too. Its industry specific teams have developed a deep understanding of their markets, ensuring fast turnaround times across all competitively priced banking services.
National Bank of Oman
Strategic vision
National Bank of Oman took a number of concerted initiatives to emerge as the bank of choice for customers
The year 2014 marked a milestone in National Bank of Oman’s (NBO) distinguished history for two very important reasons. Firstly, it was an outstanding one in terms of financial performance. The bank recorded its strongest ever net profit, crossing RO50mn for the first time, while net loans, advances and financing activities were up 12 per cent, and operating income by 10 per cent. It’s Muzn Islamic Window, overseas branches in the UAE and the wholesale banking business recorded strong and impressive results. NBO also issued a successful five-year $500mn bond under the Euro Medium-Term Note (EMTN) Programme, which made a significant contribution towards the diversification of the bank’s funding base as well as a reduction in its funding costs.
Secondly, in 2014 NBO began a transformational journey to establish itself as the bank of choice. This included the launch of a series of initiatives designed to improve the bank’s revenues, range of products, operational efficiency and service delivery. Many of these have already started coming on-stream and have begun delivering results.
NBO is operating from a rock solid platform with a crystal clear vision and a robust five-year growth strategy. Notwithstanding the challenges that lower oil prices present, the bank is strongly positioned for continued growth, driven by a stable and well diversified funding base, good asset quality and good Non-Performing Loans (NPL) coverage, a well-established UAE operation and a promising Islamic banking window. The retail and corporate businesses also continue to be core contributors to the bank’s revenues. The bank is strengthening its overall capabilities and focussing on driving digital leadership to enhance customer experience. NBO’s vision is to be the bank of choice by delivering a consistently superior customer experience through all its customer touch-points.
BankDhofar
Social conscience
BankDhofar believes in promoting social welfare by helping SMEs and giving growth opportunities to its Omani staff, as an integral part of its growth strategy
BankDhofar continued to grow in all key areas in the year 2014 and crossed RO3bn in total assets and RO2bn in net loans, advances and financing to customers, showing a growth of 18.42 per cent from RO1.90bn at the end of December 2013. The customer deposits mobilised by the bank achieved a growth of 22.17 per cent from RO2.03bn at the end of 2013 to reach RO2.48bn at the end of 2014.
The key profitability indicators have also recorded positive growth, with net interest and financing income recording a strong growth of 15.46 per cent reaching RO76.79mn for the year 2014 compared to RO66.51mn in 2013. Non-interest and non-financing income such as fees and commission, foreign exchange profit, investment and other income reached RO22.06mn in 2014 as compared to RO23.04mn, achieved in the previous year. The net profit for the year 2014 achieved by the bank was RO40.45mn as against RO35.41mn, showing an increase of 14.23 per cent year-on-year, excluding the effect of legal case write back of RO26.1mn (before taxes), in 2013.
BankDhofar has embarked on a growth strategy to fortify its role as a leading financial institution. In addition to the unique products and services that the bank offers in the market, it is committed to continue providing financial solutions to cater to the needs and requirements of its customers and to meet their aspirations. Supporting SMEs is one of the key pillars of the bank’s operational strategy, in addition to supporting larger corporates and government institutions through customised project financing solutions. The bank has put in place plans to provide more job opportunities for Omanis and to participate in the knowledge transfer and exchange of expertise in the business sector.
MID CAP COMPANIES
Al Anwar Holdings
Growing from strength to strength
The year 2014-15 was very eventful for Al Anwar Holdings, with the company recording the best-ever profit numbers in its history
Al Anwar Holdings is an investment holding company that is publicly traded and listed on the Muscat Securities Market. The company was formed on December 20, 1994 with a mandate to identify, promote and participate in equity of business ventures. Originally promoted for investments in Industrial ventures, the company  has invested in power sector, oil & gas, glass and paints, computer stationery, investment castings, construction & infrastructure and packaging catering to the FMCG industry.
The year 2014-15 was very eventful for Al Anwar Holdings, with the company recording the best-ever profit numbers in its history. Investments in Oman contributed positively by way of share of profits and the company carried out two major divestments. During the year, the IPO of Al Maha Ceramics was successfully completed. The issue was oversubscribed by over 19.5 times and the shares were listed on the MSM with a listing gain of over 69 per cent. Further, the company successfully completed the sale of its entire 33.63 per cent stake in Taageer Finance Company generating liquidity of over RO13 mn.
AAH will continue to pursue its ‘buy and build’ strategy that seeks value creation by increasing scale and unlocking potential in portfolio companies through serial bolt-on acquisitions and strategic initiatives, which ensures income generation and sustainable earnings over the medium and long term.
Oman Fiber Optic Co
Setting new trends
The Fiber Drawing Towers, which will commence in Q4 of 2015 will differentiate Oman Fiber Optic from other players in the market
Oman Fiber Optic Co is registered as a joint stock company in the Sultanate. The company, which was established in 1996 and commenced cable production in early 1999, is engaged in the design and manufacturing of fibre optic cables, trading of copper cables and cable laying services and broadband wireless communication networks. OFO offers a wide range of fibre cable solutions to meet the ever expanding communication needs of telecom companies, utilities, oil and gas sector, defence, institutional users and system integrators. The company’s services extend far beyond design, manufacture and supply of fibre and cable products. OFO offers technical consultancy on choice of fibre types, design of cables and addresses the training needs for various customer segments. The company uses state-of-the-art technology to draw fibre and manufacture world-class fibre cable products. OFO has established a reputation for high-quality fibre cable supplies and has successfully partnered with customers in the AGCC region, the Middle East, Europe, North America and the Asia-Pacific.
The new manufacturing facilities at Rusayl with the latest machinery was installed in 2014. The Fiber Drawing Towers, which will commence in Q4 of 2015 will differentiate OFO from other players in the market.
Oman United Insurance Company
Customer’s delight
To mitigate the negative impact of severe competition, Oman United Insurance Company has placed more focus on retail business
Oman United Insurance Company is one of the leading national companies in Oman, with a futuristic vision and a deep understanding of the day-to-day insurance needs of the general public, and also the industrial, business and medical sectors. The company has seen a steady business growth since 1986 in the insurance market. Keeping in mind the individual’s interests and safety, the company has designed new insurance packages with wide coverage for industry and commerce, lenders and individuals alike. The reinsurance programme led and supported by global leaders enables the company to write desirable business in a flexible way with minimal referral.
The management has been endeavouring to find out alternative source of income. Therefore, it is working on exploration of new products. Revision of the market mix will also be conducted. To mitigate the negative impact of severe competition, the company has placed more focus on retail business.
As far as the local economy is concerned, the expected growth in national gross domestic product (GDP) in 2015, accompanied by the substantial spending in infrastructure projects in the Sultanate all together will enhance the growth of Oman’s economy. The company is hopeful that this will be positively reflected on the insurance sector.
Oman ORIX Leasing Company
Targetting operational efficiency
Oman ORIX achieved the highest profits and business volume in its history during 2014. The company will continue to focus on writing good quality business and will improve its operational efficiencies thereby controlling costs
Oman ORIX Leasing Company (OOLC) was incorporated in 1994 as a joint venture between reputed local and foreign financial institutions including International Finance Corporation, a member of the World Bank group. It was listed on the Muscat Securities Market in August 1994 and commercial operations started in October 1994.
The company’s main objectives are to provide medium term asset financing to productive sectors of the economy with emphasis on serving small and medium-size business enterprises (SMEs) as well as lease financing to the consumer sector.
Oman ORIX achieved the highest profits and business volume in its history during 2014. The profit after tax for 2014 was RO4.54mn, which is 23 per cent higher than the previous year. Lease inc48ome was RO13.15mn compared with RO10.3mn in 2013, an increase of 27 per cent. The networth of the company increased to RO32.43mn, compared with RO29.68mn in 2013.
The company will continue to focus on writing good quality business and will target business growth during the remaining year 2015. The company also aims to improve operational efficiencies thereby controlling costs.
Dhofar Insurance Company
Risk management
Dhofar Insurance Company has initiated steps to launch new branches in the near future to provide better services and care to its clients.
Dhofar Insurance Company, which was established with a paid-up capital of RO3mn, is currently the largest insurance company in Oman and the third largest in the GCC region, in terms of premium value and capital.
The company’s principle activities comprise writing all classes of insurance. The company’s mission is to help people manage the risks of everyday life, recover from the unexpected and realise their aspirations. Its success is built on a foundation of shared values — quality service and relationships, mutual trust, integrity and financial strength. The profit for the year 2014 amounted to RO3.3mn (after tax) compared to RO4.64mn during the year 2013. The gross premium written for the year 2014 amounted to RO64,09mn compared to RO62.44mn for the corresponding period in 2013, while the total underwriting results for the year 2014 amounted to RO9.34mn compared to RO7.99mn for the year 2013.
The company’s vision for the future is to be the customer’s first and best choice in the products and services. Over the years, it has developed substantial relationship on an international level be it in the Europe, Middle East and the Far East. These partnerships have increasingly assisted on the re-insurance and training aspects, enabling the company insure risks beyond hundreds of millions. The company has initiated steps to launch new branches in the near future to provide better services and care to its clients.
Sohar Power Company
Powering the economy
Sohar Power is committed to provide reliable power and water to the growth of the Sultanate, encompassing high standards of safety and corporate governance
Sohar Power Company owns and operates the largest power generation and water desalination plant in the Sultanate.
SPC was incorporated in 2004 after the award of Sohar IWPP project in a competitive tender. The company has built and owns the 585MW electricity generation and 33MIGD seawater desalination plant in Sohar. The plant is located in the Sohar Industrial Port Area in Al Batinah region.
Since its commercial operation on May 27, 2007, it has been selling power and water to Oman Power and Water Procurement Company (OPWP) under a long term power and water purchase agreement (PWPA). In addition to strong operational and financial results, Sohar Power is committed to provide reliable power and water to the growth of the Sultanate, encompassing high standards of safety and corporate governance.
During the year 2014, the energy delivered was 3,497.3 GWh, with a utilisation factor of 75.6 per cent. The total water delivered by the water plant was 48,875,592 m3, with a utilisation factor of 97.6 per cent.
Going ahead, it is expected that the company will operate reliably and deliver continuous supply of power and water to its customers, while undertaking periodic maintenance activities in a safe working environment for its employees, contractors and visitors.
Al-Fajar Al-Alamia
Expanding horizons
Al Fajar Al-Alamia’s vision is to be the most respected and recognised commercial explosives and drilling and blasting operator in the Middle East
Al Fajar Al Alamia Company (formerly Hajar Explosives Trading Company and Hajar Explosives Manufacturing Company) is an Omani company with worldwide connections. It was set up in collaboration with ICI Nobel’s Explosives Company, one of the largest commercial explosives company in the world. Since inception, the company has complied with the strict and uncompromising standards related to explosives. It has been the key supplier of explosives and accessories which have made the construction of an intricate network of roads possible over rocky terrain and has also provided explosives products required for mining and quarrying operations, cutting trenches when laying oil and gas pipelines and in road and harbour construction.
The rock requirement in the region is certain to increase with the development requirement for the 2020 Expo in Dubai and the 2022 Football World Cup in Qatar and the general infrastructure improvement in the GCC region. Major infrastructure projects in the pipeline such as the Railway, Khasab-Dibba Road, Mirbat Naval Base, Thumrait Seismic Project, Duqm Pipeline and the opportunities in the Sultanate for mining activities are certain to enhance the company’s performance in the coming years.
The company’s vision is to be the most respected and recognised commercial explosives and drilling and blasting operator in the Middle East by offering customers the best possible products and optimum service while delivering projects that consistently meet international standards. The company’s mission is to expand and grow steadily, by utilising safe and quality practices to manufacture and deal in commercial explosives for rock blasting, and carry out drilling and blasting projects that consistently meet world standards.
The company has, in order to widen its footprint, decided to venture into overseas markets. The management has already shortlisted a few countries that has good scope for professional drilling and blasting services and feasibility studies are in progress.

Pages: 1 2 3 4