OQ Exploration and Production’s net profit exceeds RO199 million

OQ Exploration and Production Company achieved a growth of 19.4 percent in its net profits during the first half of this year, reaching RO199.03 million exceeding the revenue growth rate of 12 percent, which reflects the company’s efficiency in controlling costs despite the high levels of production.

This growth in revenues is attributed to the increase in sales volume of crude oil and condensates to 11.6 million barrels, in addition to the increase in the average realised oil price by 8 percent to reach US$80.9 per barrel.

The company also achieved a 14.1 percent year-on-year increase in adjusted cash flow from operations to RO 331.2 million in the first half of 2026, driven by higher commodity prices and increased sales volume.

The audited financial results indicated that the company invested RO132 million in capital expenditures since the beginning of this year, including RO128 million in investments in oil and gas assets, and RO3.5 million in exploration expenditures, in order to strengthen the company’s growth strategy and implement more future work.

The return on operating capital rose to 67 percent compared to 51.5 percent in the first half of 2025, an increase of 30 percent, confirming the growth in profits and the efficiency of the capital allocation adopted by the company.

The company has for the first time received an investment-grade credit rating of (BBB-) with a stable outlook from Standard & Poor’s and Fitch.

Mahmoud bin Abdullah Al Hashmi, CEO of OQ Exploration and Production, said that the company’s operational and financial results during the first half of this year achieved a remarkable increase across the company’s various business sectors, supported by the continued implementation of the growth strategy and the safe and well-thought-out execution of its operations, in addition to improved commodity prices, increased production, and higher oil prices, which enabled the company to achieve higher profits and cash flows, strengthen its financial position, and increase its ability to achieve sustainable long-term value for shareholders.

He noted that the company has committed to strong performance in the areas of health, safety, security and environment at a stable and consistent level, while continuing to implement safe and thoughtful operations and committing to improving emissions intensity, and completing the health, safety, security and environment action plan ahead of schedule.

He added that total production rose to 228,200 thousand barrels of oil equivalent per day during the first half of 2026, of which (53 percent oil, and 47 percent gas), an increase of 2.7 percent compared to the same period in 2025, as a result of its commitment to achieving operational performance across the company’s asset portfolio. He noted that the company maintained discipline in controlling costs and keeping the cost of operating a barrel at a level below US$10 per barrel of oil equivalent.

He confirmed that the comprehensive periodic maintenance work for the gas processing plant in concession area 60 was completed within 8 days, seven days ahead of schedule, with more than 45,000 safe working hours recorded and no injuries or accidents reported.

He explained that exploration achievements in concession areas No. 60 and No. 48 contributed to supporting production growth in the near term, and the company made significant progress in exploration operations across concession areas 11, 18, 47 and 54 during the first half of 2026.

Regarding the Marsa LNG project, he confirmed that the project has made remarkable progress during this period, exceeding 55 percent of the construction work, which supports the company’s long-term strategy for integrated growth in the gas sector.

The CEO of OQ Exploration and Production said that the Exploration and Production Sharing Agreement for Block 9 has also been amended and revised financial terms have been added in the company’s favour, allowing for higher investment and production opportunities.

The company’s investment portfolio grew through the acquisition of a 35 percent stake in concession area No. 27, the signing of agreements for offshore concession area No. 80 in partnership with the Turkish Petroleum Corporation, in addition to entering offshore concession area No. 18 in partnership with Petronas.

The company continues to promote global growth by studying and evaluating investment opportunities based on memoranda of understanding with national and international oil companies, which supports its ambitions for long-term sustainable growth and enhances value delivery to shareholders.

It is worth noting that the company’s board of directors proposed the dividend distributions, subject to shareholder approval, to include the basic dividend distributions for the second quarter of 2026, amounting to RO57.7 million, to be paid in September 2026.