OQEP reaches revenue of $1.1bn for the first half of 2025

14/08/2025 05:09 AST

OQ Exploration and Production (OQEP), Oman's exploration and production company, has released its financial results for the first half of the fiscal year ending June 30, 2025.

The company reported a revenue of OMR 428.1 million ($1.1 billion) and an EBITDA of OMR 317.4 million ($825.6 million).

Notably, the adjusted cash flow from operations saw a 20 per cent increase, reaching $752.1 million.

The return on capital employed for the first half of 2025 stood at 24.4 per cent, with a notable rise to 25.8 per cent for the second quarter, reflecting a significant improvement from 22.1 per cent in the first quarter.

OQEP also reported a robust cash balance that grew by 31 per cent to $546.6 million, compared to $416.5 million in the first half of 2024, while maintaining a low leverage ratio of 0.27 times EBITDA.

The company declared a quarterly base dividend of $150 million for Q2 2025, set to be paid in September.

Furthermore, the Board proposed a similar dividend for Q3 2025, with payment scheduled for November.

Additionally, the Board introduced a Performance Linked Dividend (PLD) for H1 2025 amounting to $114.9 million, which will be distributed in two equal installments in September and November.

To enhance shareholder returns, a share buyback programme of 45-60 million shares has also been announced.

On the operational front, total production remained stable at 222.3 kboepd, with oil and condensate contributing 120.1 kboepd and gas at 102.3 kboepd.

This reflects a slight decrease in oil production compared to H1 2024, while gas production showed a marginal increase.

The company's organic growth was bolstered by asset enhancements, including the early commissioning of the Bisat C Expansion at Block 60 and the extension of the Block 53 EPSA to 2050, featuring improved fiscal terms.

Additionally, construction has commenced on the Marsa LNG project, which is expected to be completed by 2028.

OQEP has also signed agreements with new international exploration partners, including Genel Energy and Turkish Petroleum Corporation.

Ahmed Al Azkawi, Chief Executive Officer, OQEP, commented: "OQEP's strategy has delivered a robust set of financial results for the half year, despite the macroeconomic challenges the sector faced during the period. With the reduction in the price of oil, OQEP successfully increased its sales volume of oil and condensates during the period, enabling our revenue to perform comparably to the first half of 2024. The business generated strong cash flow, with our adjusted cashflow from operations increasing by 20 per cent, whilst we delivered a return on capital employed of 24 per cent for the first half and nearly 26 per cent for the second quarter. OQEP also increased its cash position by 31 per cent to OMR 210.2 million with low leverage 0.27x EBITDA."

Al Azkawi added: "We continued to progress initiatives and commercial negotiations across all our assets to further develop organic value. The Bisat C Expansion project at Block 60, which will provide an additional oil processing capacity of 37,000 barrels of oil a day, was commissioned in June, ahead of schedule. In May, OQEP, together with Oxy and other partners, announced an extension to 2050 for Block 53's EPSA which will see a potential additional 800 million gross oil barrels produced on improved fiscal terms. Initial construction of the Marsa LNG plant, a $1.6 billion joint venture with our partners, TotalEnergies, commenced in the second quarter. We are also in discussions with bp and our Block 61 partners to increase the gas volume by up to 2 TCF gross for future projects."

He further stated: "OQEP continued to attract international partners including Genel Energy and, post period, the Turkish Petroleum Corporation (TPAO) with the signing of new exploration deals. In June, our shareholders approved a change in OQEP's Articles of Association, enabling it to repurchase its own shares. We subsequently announced in July a share buyback programem to further enhance shareholder returns. OQEP's Board has also proposed to the shareholders' Ordinary General Meeting the payment of our quarterly cash dividend of OMR 57.7 million for the second quarter, which is payable to eligible shareholders in September. In addition, the Board has proposed that OQEP's base dividend of OMR 57.7 million for the third quarter shall be paid to shareholders in November 2025. For our inaugural Performance Linked Dividend of OMR 44.2 million for H1 2025, the Board proposed that shareholders should receive the PLD in two equal instalments in September and November 2025."

Al Azkawi concluded: "OQEP is proud to be the National Upstream Champion, helping to enable Oman Vision 2040. We look forward to a successful second half of the year, and I thank our people, our partners and the Government of Oman."

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