Muscat – The total profits of Oman’s three oil marketing companies – Oman Oil Marketing Company (OOMCO), Shell Oman Marketing Company, and Al Maha Petroleum Products Marketing Company – significantly increased during the first quarter of 2023 as the firms recorded robust growth in fuel sales.

For the first quarter of 2023, all three oil marketing companies together reported slightly more than RO4mn in total net profits, which is 13 per cent higher compared to the RO3.56mn net profit registered by the companies in the first quarter of the previous year.

The sultanate’s largest oil marketing company, OOMCO, saw its net profit for the three-month period ending March 31, 2023, grow by more than 16 per cent to RO1.41mn compared to the RO1.21mn net profit reported in the same period of 2022. The company’s group turnover jumped by 20 per cent to RO202.4mn in the first quarter of 2023, against the RO169.1mn recorded in the previous year.

In its latest financial report, OOMCO stated that the increase in revenue was the result of higher sales in the bunker fuel trade and aviation segment. The company also expressed optimism about Oman’s future economy, which is expected to positively impact its performance.

‘The company is pursuing its five-year strategy (2022 – 2026), which reflects a clear growth road-map that focuses on domestic and international growth, as well as future mobility, sustainability, renewable energy, and an operational excellence framework that aims for effective processes and optimisation of our operational efficiencies,’ OOMCO said.

‘OOMCO continues to innovate and develop new initiatives to ensure that it remains resilient. The company will spare no efforts to explore all viable opportunities that will enhance the overall company’s performance in a sustainable way,’ the company added.

Al Maha Petroleum posted an impressive 74 per cent year-on-year growth in its net profit for the first quarter of 2023. The company’s net profit rose to RO1.6mn during the January-March period of 2023, compared to RO920,000 recorded in the same period last year. Its sales revenue during the first quarter of 2023 grew by 21 per cent to RO120.87mn from RO99.9mn in the same period of the previous year.

Al Maha Petroleum attributed this growth to its expanding operations and diversifying product portfolio. The company stated that the robust growth in net profit demonstrates its commitment to cost management and operational efficiency.

‘The retail segment witnessed a significant improvement compared to the same period in 2022, as sales increased in the majority of retail stations due to the lifting of restrictions on movement. Additionally, retail fuel stations near the borders contributed to the increase in sales due to price differences,’ Al Maha Petroleum said in its financial report.

According to Al Maha Petroleum, the fiercely competitive commercial fuel segment continues to be challenging due to low demand from many business and service units in the power sector resorting to the use of gas as a replacement for gas oil.

However, the company stated that the increase in the bunkering business and the delivery of additional fuel products to the Duqm Refinery has contributed to the growth of the commercial segment.

Shell Oman Marketing’s sales revenue rose 10 per cent to RO122.79mn in the first quarter of 2023, compared to RO112.1mn in the same period last year. However, the company reported a 31 per cent drop in net profit for the first quarter of this year, at RO993,000 compared to the RO1.43mn earned in the corresponding period of 2022.

The decline in quarterly profit was mainly due to movement in aviation fuel prices compared to the same period last year and an overall increase in direct costs, Shell Oman Marketing said in its financial report.