OQ, the integrated energy group of the Sultanate of Oman, posted a 62 per cent jump in consolidated during 2021, which surged to $22.768 billion, compared to $14.006 billion a year earlier.

The state-owned energy conglomerate – part of Oman Investment Authority – posted a net profit of $1.818 billion for the year, compared to a net loss of $4.460 billion in 2020.

OQ Group Chairman Mulham Basheer al Jarf described the group’s performance in 2021 as “exceptional”, driven primarily by the “improved market environment, as well as strong operational performance across the business”.

Group CEO Talal al Awfi added: “Financially, OQ posted an exceptional performance in 2021. Although product prices and spreads improved greatly compared to 2020, it is important to note that OQ delivered stronger operational performances, higher production rates and lower OpEx across most businesses. These efforts were pivotal in OQ delivering strong financials for the year.”

Two key factors help spur the surge in the Group’s 2021 revenue: The increase in oil and gas production levels along with higher realised OEB (Oman Export Blend) oil prices; and Higher refining and petrochemical revenue due to the recovery of demand and prices of all products within the downstream spectrum.

EBIDTA – a key measure of the group’s overall financial performance – soared 152 per cent to $3.699 billion in 2021, up from $1.464 billion in 2020. “OQ’s performance for the year significantly improved its Net Debt to EBITDA ratio, decreasing it from 7.80 times in 2020 to 2.95 in 2021,” said Group Chairman Mulham al Jarf.

Contributing to this strong growth in EBIDTA were a number of factors, including an uptick in oil and gas production, mainly from operated blocks and JV assets respectively, along with higher OEB prices. This was supplemented by the commencement of new projects, notably OQ Plastics and OQ LPG, lower operating costs and gains from divestments. Around 50 per cent of the Group’s EBIDTA came from its Upstream operations, followed by its Downstream & Commercial Activities with a 29 per cent share.

Crude oil and natural gas production levels had also perked up in 2021, buoyed by an uptrend in global demand. Total crude oil and condensate output from the Group’s operated blocks, JV assets and service contract blocks averaged 109K bpd (including 82K bpd from non-operated assets). Natural gas production averaged 435 million standard cubic feet per day (mmscf/d), the lion’s share – 401 mmscf/d – coming from non-operated blocks.

Output from OQ Group’s array of refining and downstream petrochemical projects was strong as well during 2021. Production from the Group’s refineries averaged 264K bpd of refined products. Output from other units was as follows: Aromatics – 772,400 MT, Polypropylene – 204,800 MT, OQ Plastics – 592,000 MT; Methanol – 1.112 million MT, and OQ LPG – 114,200 MT.

Group CEO Talal al Awfi also cited the Group’s energetic foray into the Alternative Energy space, noting that “many projects (are) progressing amid a strong interest from potential partners, and OQ finalising the decarbonisation policy”.

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