Muscat – OQ Base Industries (OQBI) has announced its dividend distribution for 2024, targeting a total payout of RO32.7mn for the full year.

The first distribution, amounting to approximately RO24.5mn, is expected in January 2025, covering the first nine months of the year. A second payout of RO8.2mn will be made in April 2025, representing the last quarter of 2024, according to a press statement.

OQBI’s Chief Financial Officer, Ahmed al Baraami, said that the company aims to achieve at least 5% annual profit growth in both 2025 and 2026, compared to the previous year, in order to ensure sustainable returns.

Baraami also noted that starting from 2027, OQBI plans to distribute any excess cash not allocated to core operations, growth investments, or acquisitions.

“This dividend policy demonstrates our confidence in maintaining robust cash flows and our commitment to aligning shareholder returns with the company’s solvency and long-term strategy,” he added.

The expected dividend for 2024 is 9.5bz per share, with an anticipated dividend yield between 8.5% to 8.9%, depending on the share price determined during the IPO.

Additionally, the company plans to increase the dividend by at least 5% annually for the next two years, through 2026.

Baraami emphasised that, with an IPO share price range of 106bz to 111bz per share, both Category 1 investors (local and foreign institutions) and Category 2 individual investors will receive the same expected yield of between 8.5% and 8.9%.

“OQBI’s premium returns stem from our stable cash flows and disciplined financial management,” Baraami said. He highlighted the company’s strong financial track record and well-structured dividend policy, supported by steady EBITDA margins. “These advantages, combined with our disciplined capital allocation approach, position us as a reliable and attractive investment destination,” he added.

Commenting on OQBI’s H1 2024 performance, the CFO reported, “In the first half of 2024, our EBITDA reached RO39mn, with a margin of 37.4%.”

He also noted, “In 2023, the company’s EBITDA was RO84.6mn, with a margin of 43.1%, demonstrating our ability to maintain profitability amidst market volatility.”

Baraami highlighted that the company’s 2023 revenues remained steady at RO196.2mn. While revenues from methanol and ammonia saw a slight decline, LPG revenues continued to rise, reaching RO79.8mn, driven by strong sector demand.

“In the first half of 2024, total revenues reached RO104.3mn, with methanol and ammonia contributing RO68.3mn and LPG adding RO36mn. This demonstrates continued stability across product lines,” Baraami concluded.