Muscat – OQ, Oman’s globally integrated energy group, reported a net profit of RO970mn for the year ended December 31, 2023, with the group’s total annual revenue reaching RO13.7bn.

The strong performance of OQ reflects the group’s robust operational achievements across its businesses during 2023. Key drivers behind this success included increased production volumes, operational excellence across assets, and gains from divestment activities.

In 2023, OQ received proceeds from the divestment of Block 60, initial public offerings (IPOs) of Abraj Energy Services and OQ Gas Network, and dividends from OMIFCO and OQ Trading.

According to the group’s 2023 annual report, OQ recorded increased oil and gas production from its operated blocks and joint venture assets, along with higher export prices of Oman blend crude.

OQ achieved an average production of around 246,000 barrels of oil equivalent per day, totaling 89mn barrels of oil equivalent for the year 2023. Additionally, the group’s refining and petrochemicals units processed 81mn barrels of crude in 2023.

The group also observed strong performance in refinery products cracks, increased polymers and LPG throughput, and robust trading with strong gross margin performance across assets. OQ attributed this level of operational, financial, and strategic performance to the directives of the Oman Investment Authority (OIA) and the group’s Board of Directors, aimed at enhancing performance and achieving targeted rates.

‘The group will continue to focus on continuous improvement by controlling costs, developing commercial aspects, optimising operating expenses, and enhancing asset competitiveness. In addition, the group will champion the energy transition through carbon emission reduction and investments in renewable energy,’ the OQ report said.

In-Country Value

OQ expressed its commitment to working alongside government efforts to enrich local markets by implementing a regulatory and legislative framework to maximise In-Country Value (ICV).

The group’s annual report highlighted that OQ’s spending on local goods and services in 2023 surpassed RO408mn, accounting for 77% of OQ’s total procurement expenditure for the year, totaling RO528mn. The ICV index reached 31.9%, demonstrating OQ’s dedication to supporting local businesses.

OQ places significant emphasis on ICV, focusing on enriching local markets, promoting domestic products, and supporting small and medium enterprises (SMEs).

Expenditure on SMEs amounted to RO95mn, constituting 18% of the total expenditure during 2023. OQ’s contributions to social investments in 2023 amounted to RO4.4mn, reflecting its commitment to serving the community across social, environmental, economic, and health dimensions.

OQ places high value on human resources, achieving an 83% Omanisation rate in 2023. In the realm of health, safety, security, and the environment, the group logged 46mn work hours in 2023 without any fatalities.