National Gas Company
In expansion mode
National Gas Company has consolidated its operations in UAE, KSA and Malaysia
National Gas Company (NGC) performed well in all its key markets of Oman, UAE, KSA and Malaysia, during the last couple of years. NGC was also successful in getting all approvals for its new subsidiaries in KSA and in Umm Al Quwain in UAE. These entities are expected to contribute significantly to the group operations in 2015 and beyond. The group has LPG sales exceeding 35,000 MT across geographies.
The decline in the group revenue is largely reflective of the declining Saudi Aramco gas contract prices especially in the latter part of 2014 in markets like UAE and Malaysia where revenues are recorded at international prevailing market prices. In Oman, the rising product supply costs as well as operational expenses have rendered the cylinder business unviable with the business seeing no respite with respect to change in cylinder selling prices. The company’s business outside Oman contributed positively through growth in bulk LPG market in UAE and Synthetic Natural Gas projects in Saudi Arabia.
In addition, in 2014 NGC came out with a rights issue in Oman. The company has renewed the sourcing contract for LPG supplies in UAE market for another two years and completed mechanical works of its first LPG storage and distribution facility in UAE.
NGC has emerged ever stronger after a challenging 2014 and is fully geared up to continue raising the bar on operational excellence and financial performance. The company is well positioned to unleash its full potential across its principal market. The company is also evaluating various initiatives to bring in a healthy balance and diversification to its product portfolio.
Oman & Emirates Investment Holding
Cautious optimism
Oman & Emirates Investment Holding Company weathered adverse situation by restructuring its trading investments
Oman & Emirates Investment Holding Company (OEIO) engages in the provision of investment services in Oman and the UAE. Founded in May 1993, and headquartered in Muscat, the company’s core activities include project development and investment banking.
In 2014, the parent company restructured its trading investments to focus more on trading portfolio. The company also utilised part of the sale proceeds to reduce its bank borrowings. These steps have helped the company to sustain its strength in an adverse situation. The unprecedented fall in the oil prices across the world has affected financial markets and stock indices of the oil producing countries such as Oman and UAE. However, OEIO’s investment portfolio in fundamentally strong assets with a good track record could weather adverse reactions.
In another development, the company has divested its 100 per cent holding in Omani Goat Breeding Company which could not start its full commercial operations due to inability to secure well permits in its farmlands.
Having overcome the challenges due to the falling investment valuations towards the end of 2014, the company is now focusing on enhancing the existing position and moving ahead with caution. As an investment holding company, OEIO needs to maintain a delicate balance between long term investments which require a long period of waiting and short term investments which need closer monitoring. In this challenging situation, the company is moving forward with greater optimism and growth strategies. Efforts will continue to fulfill the objectives as stipulated in the business plan and this will include disinvestment of non-performing investee companies in the group, restructuring the investments and reduction of the borrowings.
A’Sharqiya Investment Holding
Well-diversified
A’Sharqiya Investment Holding Company has focused on long-term investments to ride through the wave of short-term fluctuations in asset prices
A’Sharqiya Investment Holding Company was promoted in 1998 mainly by a wide section of investors hailing from the Sharqiya region with a mission for the development of the region and the country at large through promoting projects of regional and national importance. The company was promoted with a paid-up capital of RO6mn of which 40 per cent was subscribed by the public. The current paid-up capital of the company stands at RO9mn.
The principal objectives of the company are to identify and promote suitable projects for investment in financial markets, both local and overseas. The activities of the company can be broadly summarised as follows: Promoting new projects in Oman and overseas; acquiring existing businesses and investing in local and overseas financial markets.
A’Sharqiya has taken significant efforts to stay focused on adding value to its investee companies with a long term perspective. This approach has helped the company’s investment significantly. A’Sharqiya has a portfolio of assets that is well-diversified in terms of business sectors. In anticipation of significant changes in regional financial markets, the company exited some underperforming assets and reinvested the proceeds in a portfolio of regional equities with a long-term perspective. The company believes in long-term investments to ride through the wave of short-term fluctuations in asset prices.
Apart from its public equity and private equity investments, the company has also invested directly in privately held companies such as Vision Insurance and A’Sharqiyah University. A’Sharqiya‘s subsidiaries include Qalhat Real Estate Investments & Services and Rehab for Medical Rehabilitation.
The company also actively pursued a strategy of evaluating investment opportunities in the real economy, which are expected to fructify in the forthcoming years.
Sahara Hospitality Company
Partner in growth
Sahara Hospitality Company supports Petroleum Development Oman’s interior oilfield operations by providing high-standard hospitality services
The main business of Sahara Hospitality Company (SHC) is the provision of accommodation, catering and related services to PDO contractors’ staff in the interior locations such as Fahud and Nimr and Rima. Initially SHC constructed 384 and 264 room facilities at Fahud and Nimr respectively. However, in view of increased demand for accommodation, additional 740 rooms were built and extensions of related facilities were carried out at above facilities during the last five-year period. This is in addition to Rima PAC facility that has been awarded during 2012 which include 142 available rooms and 36 rooms added thereafter.
In accordance with PAC contract with PDO, SHC is expected to provide accommodation, messing, housekeeping, recreational and medical services as well as maintenance of facilities. However, SHC has entered into a service agreement with Catering and Supplies Company (CSC) wherein CSC provides all required services and operates the PACs in line with contract terms and conditions. The success of SHC’s business depends on providing excellent services and achievement of maximum level of occupancy. Based on current activities and availability of additional room facilities, the company expects improved results in the coming years.
Hospitality is a specialised trade that requires good expertise and considerable amount of efforts to provide the required services to people in the remotest areas. Although SHC’s current core business is the provision of hospitality services at the PACs, the company is looking to expand its business to other avenues. SHC’s future business seems to be promising within the current contract, but the company is evaluating investment plans that may lead to a new strategy to become well-diversified company.
Oman Education & Training Investment Company
Opening up new vistas
Sohar University, a subsidiary of Oman Education & Training Investment Company, is entering into the second phase of its development
The principal activity of Oman Education & Training Investment Company is providing educational services. The subsidiary companies controlled by the group are Sohar University, Sohar International School, Modern Catering Company and Sohar Transportation and Shipping Services (yet to be operational).
Sohar University is run in partnership with prestigious international academic institutions. Recently, the faculty of computing and information technology of the University obtained the accreditation of Australian Computer Society. Sohar University has also signed an agreement with Petroleum Development Oman for a collaborative research programme including trials, product development, capability and technology development in various technical areas. Sohar University has also been selected by the Oman Academic Accreditation Authority (OAAA) to pilot their Institutional Standards for Assessment.
The University has also got the approval of the Ministry of Higher Education to set up its Postgraduate Research Centre. More recently, the university has increased its emphasis on research. Its staff has been successful in winning research grants from The Research Council of Oman and from international research funding bodies. Sohar University is entering into the second phase of development after its inception and growth over its first decade.
The Sohar International School currently has 945 students enrolled from Kindergarten to Year 12. The school plans to complete its programmes with CIE A Levels in Grades 12. The school is also looking to house itself in a single campus at Al Uwainat.
Methodology
The universe of the Fastest Growing Companies in Oman 2015 survey comprised companies that were listed on the Muscat Securities Market (MSM) earlier than June 2012 and had a market capitalisation of more than 10 million rials as on June 30, 2015. The companies were divided into large cap, mid cap, and small cap based on the market capitalisation as on June 30, 2015.
Large cap companies were defined as those companies which had a market capitalisation of RO100mn and above.
Mid cap companies were defined as those with a market capitalisation between RO25mn and 100mn
Small cap companies were defined as those with a market capitalisation between RO10mn and 25mn
The study loosely follows Fortune magazine’s model for identifying the 100 fastest growing companies. The listed companies in Oman were ranked by their compounded average revenue and net income growth rates for the three year period ending December 31, 2014. The three-year annualised total return to investors for the period ended June 30, 2015 was also considered. The overall rank is based on the sum of the three ranks. In case of a tie, the company with the higher net income growth received the higher rank.
Notes and observations
The ranking covered 98 per cent of the total market capitalisation of the eligible MSM companies as on June 30, 2015.
The large cap section comprised 22 companies representing 81.5 per cent of the total market capitalisation of the MSM.
There were 24 companies in the mid cap section, comprising 13 per cent of the total market capitalisation of eligible companies.
The small cap section included 19 companies covering three per cent of the total market capitalisation.
Three out of the five industrial companies in the large cap segment made it to the list this time. These companies had invested significantly in capacity expansions over the last three years, which helped them to record double digit growth rates in revenue and profits. This has paid off for the shareholders in the form of price appreciation of these stocks.
In another first, the smaller banks made it to the list this time. These banks have been aggressive in expanding their business and have thus created their niche in a highly competitive and overcrowded sector, helping their relative outperformance over the sector based peers.
The data for the survey was provided by United Securities, Oman.

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