Muscat : The financial results highlight OQEP’s continued ability to generate strong and predictable cash flows from its high-quality asset base.
The Company’s revenue reached RO 841 million (USD 2,188 million), generating EBITDA (earnings before interest, taxes, depreciation, and amortization) of RO 614 million (USD 1,596 million). Free cash flow stood at RO 251 million (USD 654 million).
Ahmed Said Al Azkawi, Chief Executive Officer of OQEP, commented: “OQEP has delivered a strong set of results for the year, built upon our position as a low-cost operator of high-quality assets, generating industry-leading returns. During the year, OQEP listed its shares on the Muscat Stock Exchange. The Offer generated strong investor demand and raised RO 780 million. As part of our strategy to deliver shareholder value we announced a planned return of capital in the form of dividends, with a target base dividend of RO 230 million for 2025 and 2026, subject to company performance and Board approval. The proposed return of capital can also be enhanced with a performance dividend.
“We continue to develop our assets in line with our strategy. We were able to increase the reserves of our key asset, Block 60, through improved recovery techniques, including infill drilling, and new discoveries. We are also discussing with our partners the opportunities to unlock further growth across our portfolio, as well as pursuing new licensing opportunities.
“Our decarbonization strategy continues to be implemented successfully with Block 60 emission intensity already below the Oil and Gas Climate Initiative’s target of 17kg CO2/boe at 14.33kg CO2/boe for 2024.Safety is a critical aspect of our strategy; the investment in OQEP’s Health and Safety accountability programme continues to deliver a declining trend in its Lost Time Incident Rate.
“OQEP’s strategy will continue to generate value for its shareholders and help secure a sustainable and secure energy future for Oman.”
OQEP continued to deliver sustainable cash generation from its assets during 2024. Revenue was supported by stable production levels during the year, with revenue attributable to gas increasing by 20% due to increased market demand.
OQEP’s dividend policy is linked to sustainable cash flow generation for its shareholders and is expected to comprise a base dividend of RO 230.7 million (USD 600 million) and a performance-linked dividend equal to 90% of the Company’s expected free cash flow plus the net proceeds from any potential asset disposals, minus the base dividend. Dividend policy is subject to considerations including the prevailing market conditions and the operating environment outlook for the Company’s business.
OQEP has already distributed an aggregate dividend of RO 173 million in 2024, and the Board of Directors has proposed an additional cash dividend of RO 57.68 million. Shareholders will receive a cash dividend of 7.21 Baizas per ordinary share. The proposed cash dividend is subject to formal approval of the Annual General Meeting of shareholders, scheduled to be held on 12 March 2025.
OQEP has a high-quality portfolio of fourteen upstream oil and gas assets in Oman. These assets range from those in the development and production phase to others being appraised for commerciality or undergoing exploration programmes. OQEP either operates these assets or acts as a participant or nonoperator alongside one or more joint venture partners.
