Saturday 17 / May / 2025
Muscat: The Board of Directors of OQ Base Industries OQBI) has approved the unaudited financial results for the three-month period ended 31 March 2025, demonstrating a robust performance across all key metrics.
OQBI recorded a significant increase in net profit, marking a 70.6% rise compared to the same period last year. Net profit for Q1 2025 reached OMR12.8 million, up from OMT7.5 million in Q1 2024.
In addition to this financial achievement, OQBI continues to uphold its Sharia-compliant status and remains committed to ethical and transparent operations. The company’s strategic focus remains aligned with its objectives to deliver sustainable value to all stakeholders.
OQBI maintained its focus on health and safety, achieving outstanding HSSE performance during the period. The methanol, LPG and ammonia plants successfully secured certifications across environmental, health, safety and quality management systems. These milestones reflect the company's dedication to risk management and sustainability, reinforcing its position as a responsible industrial leader.
As Oman’s only integrated producer of methanol, ammonia and LPG products, which include propane, butane, condensate and LPG (cooking gas), OQBI achieved a notable 7.5% increase in cumulative production for methanol and ammonia. Production for the three-month period ending 31 March 2025 reached 389Kt, up from 362 Kt in the same period in 2024. This growth resulted from exceptional plant utilisation rates of 102% for methanol and 101% for ammonia.
LPG production, however, saw a marginal decrease of 3.4% to 84 Kt, compared to 87 Kt in Q1 2024, driven by slightly lower utilisation of the LPG plant at 102%. OQBI Group exceeded its production targets for Q1 2025, outperforming the business plan projections.
Revenue for the Group grew by OMR9.2 million, or 19.9%, reaching OMR55.5 million for Q1 2025, compared to OMR46.3 million during Q1 2024. This increase was mainly driven by higher sales prices for methanol, increased ammonia sales volumes contributing OMR3.4 million representing a 60.4% increase and higher LPG sales volumes contributing OMR3.1 million. EBITDA increased by OMR3.6 million or 17.3%, reaching OMR24.7 million versus OMR21.0 million in Q1 2024. This increase was driven by revenue growth, partially offset by an OMR1.5 million increase in gas consumption charges at the Parent Company, an OMR4.6 million provision for notional gas at the subsidiary and an OMR0.5 million increase in other expenditures.
Net profit rose by OMR5.3 million, or 70.6%, reaching OMR12.8 million. This was primarily due to the revenue increase of OMR9.2 million and finance cost savings of OMR3.3 million. These were partially offset by higher natural gas costs amounting to OMR1.5 million, notional gas provision of OMR4.6 million, higher operating expenses of OMR0.8 million and lower finance income of OMR0.3 million.
Following a transformative year in 2024, OQBI continues its positive trajectory in 2025, driven by robust operational performance and a commitment to sustainable and transparent growth.
OQBI remains focused on operational efficiency, HSSE excellence and delivering sustainable growth to meet both shareholder and national economic objectives.
