OQ Group profits rise to $2.5 billion on increased production volumes and operational prowess

Global integrated energy group OQ has reported an increase in its annual profits to Omani Riyal 970 million ($2.52 billion). Releasing its financial results for 2023, the company on Thursday reported revenue of OMR 13.7 billion (US $35.59 billion), earnings before interest, taxes, depreciation and amortisation (EBITDA) of OMR 1.975 billion.

OQ - formerly known as Oman Oil Company - said this outstanding performance reflected “robust operational achievements” across the group’s businesses.

Enhanced performances

The company cited key factors including increased production volumes, strong Oman Export Blend (OEB) and refined product prices, operational excellence across its assets, and gains from divestment activities.

“The achievement of this level of operational, financial, and strategic performance in 2023 reflects the directives of the Oman Investment Authority (OIA) and the group’s board of directors to enhance performance and achieve targeted rates,” said OQ in a statement.

“The group will continue to focus on continuous improvement by controlling costs, developing commercial aspects, optimising operating expenses, and enhancing asset competitiveness.” OQ also pledged to “champion the energy transition” through carbon emission reduction and investments in renewable energy. 

Encouraging numbers

OQ achieved average production of about 246,000 barrels of oil equivalent per day (BOE/D) by the end of December 2023, according to the annual report. Total annual production reached 89 million barrels of oil equivalent.

The refining and petrochemicals sector achieved 81 million barrels of processed crude in 2023.

OQ Group has said it will also work in tandem with Omani government efforts to enrich local markets by implementing a regulatory and legislative framework to maximise In-Country Value (ICV).

The company is also looking to boost inclusion of Oman’s citizens in its businesses - it achieved 83% Omanisation in 2023, including training and employing more than 200 graduates through its graduate programme.

More positive figures

OQ’s outlay on local goods and services in 2023 surpassed OMR 408 million, accounting for 77% of OQ’s total procurement expenditure for the year (OMR 528 million).

The ICV index reached 31.9%, demonstrating company commitment towards supporting local businesses to enrich local markets, promote domestic products, and support small and medium enterprises (SMEs). 

In 2023, OQ’s contributions to social investments amounted to OMR 4.4 million.