Muscat – OQ Exploration and Production (OQEP) reported a 19.4% year-on-year increase in net profit to RO199.03mn for the first half of 2026, compared with RO166.63mn in the same period of 2025, supported by higher sales volumes and improved realised oil prices.

Revenue rose 12% to RO685.52mn in January-June period of 2026 from RO612.1mn a year earlier, according to the company’s financial report submitted to the Muscat Stock Exchange.

OQEP attributed the revenue growth to higher sales volumes of crude oil and condensates, which reached 11.6mn barrels, as well as an 8% increase in the average realised oil price to $80.9 per barrel during the first half of the year.

Adjusted cash-flow from operating activities also increased 14.1% year-on-year to RO331.2mn, driven by higher commodity prices and increased sales volumes.

The company invested RO132mn in capital expenditure during the first half of 2026, including RO128mn in oil and gas assets and RO3.5mn in exploration expenditure, supporting the continued development of its asset portfolio and future growth.

OQEP’s return on capital employed rose to 67% from 51.5% in the first half of 2025, representing a 30% increase and reflecting stronger profitability and improved capital efficiency.

In a further boost to its financial position, OQEP secured investment-grade credit ratings of BBB- with a stable outlook from S&P Global and Fitch Ratings, marking the first time the company has received investment-grade ratings from the two agencies.

In a statement to Oman News Agency, Mahmoud Abdullah Al Hashimi, Chief Executive Officer of OQ Exploration and Production, said the company delivered strong operational and financial performance across its business during the first half of 2026.

“This was supported by the continued implementation of the growth strategy and the safe and disciplined execution of operations, alongside the improvement in commodity prices, increased production and higher oil prices,” he said. “This enabled the company to achieve higher profits and cash flows, strengthen its financial position and enhance its ability to deliver long-term sustainable value to shareholders.”

Total production increased 2.7% year-on-year to 228,200 barrels of oil equivalent per day in the first half, comprising 53% oil and 47% gas, Al Hashimi said. He attributed the increase to the company’s focus on operational performance across its asset portfolio.

He added that OQEP maintained strict cost discipline, keeping operating costs below $10 per barrel of oil equivalent. Comprehensive periodic maintenance at the gas processing plant in Block 60 was completed in eight days, seven days ahead of schedule, with more than 45,000 safe working hours recorded without injuries or incidents.

Exploration activities in Blocks 60 and 48 also contributed to supporting near-term production growth, while the company made significant progress in exploration operations across Blocks 11, 18, 47 and 54 during the first half.

The Marsa LNG project also made significant progress, with construction completion exceeding 55% during the period, supporting OQEP’s long-term strategy for integrated growth in the gas sector.

The company also amended the Exploration and Production Sharing Agreement (EPSA) for Block 9, introducing revised financial terms that it said would support investment opportunities and higher production.

OQEP’s Board of Directors has proposed a base dividend of RO57.7mn for the second quarter of 2026, subject to shareholder approval. The dividend is scheduled to be paid in September 2026.