Muscat: OQ Base Industries (SFZ) SAOG (OQBI), the majority Omani state-owned integrated producer of methanol, ammonia and LPG, has reported a significant 16.2 per cent increase in output during the first nine months of this year, attributable primarily to optimal utilisation of the capacity of its modern production complex in Salalah Free Zone.

The company – part of OQ integrated energy group – also announced in its first quarterly financial report since its debut on the Muscat Stock Market (MSX) last month – that it is on track to surpass its 2023 output.

“(OQBI) Group has achieved 16.2 per cent higher production cumulatively for Methanol and Ammonia (1,138K MT) for nine months period ended September 30, 2024 compared to (979K MT) for the same period ended September 30, 2023.

The increase in production was due to effective utilisation of plant (106 per cent) as compared to utilisation of 93 per cent in 2023,” the Chairman of OQBI’s Board of Directors said.

“Likewise, LPG plant has achieved utilisation of 116 per cent resulting in 3.9 per cent higher production for LPG products (269K MT) for nine months period ended September 30, 2024 as compared to volume produced of 259K MT in same period last year.

It is expected that OQBI Group will exceed the production targets for 2024,” the Chairman added in the Board of Directors’ report for 9M 2024.

The combined nameplate capacity of the integrated plant currently stands at 1,816K tonnes per annum (tpa), distributed between methanol (1,095K tpa), ammonia (365K tpa) and LPG (356K tpa).

Following a successful public subscription of 49 per cent of its capital, which raised around RO 188 million from institutional and retail investors, OQBI listed on the Omani bourse on December 15, 2024.

On Wednesday, announcing its unaudited financial results for the first nine months of the year, OQBI said its Group revenue increased by RO 12.9 million (8.8 per cent) to reach RO 159.9 million, compared to RO 147 million for the corresponding period of 2023.

The increase in revenue was primarily due to an increase in both sales volume and market prices for all the products, it stated.

However, net profit declined 60.3 per cent to RO 21.0 million, compared to RO 34.8 million for the nine months ended September 30, 2023.

“The decrease in profit for the period was primarily due to an increase in non-cash expenditures that did not have any effect on the Group’s cash flows.

The notional cost of rich gas increased by RO 5.3 million, or 21.3 per cent, to RO 30.1 million in 2024 compared to RO 24.8 million in 2023, while the Company had one-off impairment of an RO 5.3 million related party receivable in 2024 compared to nil in 2023,” it added.

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