Oman’s OQBI achieves record production in 2024
Conrad Prabhu
Business Correspondent - Oman Daily Observer; Magazine Editor - ENERGY OMAN
OMAN DAILY OBSERVER / 6 MAR 2025
CONRAD PRABHU
OQ Base Industries (SFZ) SAOG (OQBI), the majority Omani state-owned integrated producer of methanol, ammonia and LPG, achieved record output in 2024, capping a year of year of significant milestones that also included a successful Initial Public Offering (IPO).
Accordingly, OQBI posted a 19.7 per cent uptick in revenues, which climbed to RO 234.8 million last year, up from RO 196.2 million in 2023. Driving this growth was a significant rise in earnings from methanol exports, which jumped 44.4 per cent to RO 111.6 million, up from RO 77.3 million in 2023.
Net profit however declined 14.9 per cent to RO 40.4 million, compared to RO 47.5 million in 2023, primarily due to a 50.4 per cent increase in the notional provision of rich gas as feedstock, among other factors.
OQBI Board Chairman Ali al Lawati described 2024 as a “period of significant transformation and growth” for the company. “We adeptly navigated various challenges, seized emerging opportunities, and delivered exceptional results across all areas of our operations. A key milestone in our journey was the successful completion of an Initial Public Offering (IPO), where 49 per cent of our share capital was offered to the public. The shares commenced trading on the Muscat Stock Exchange (MSX) on 15 December 2024, marking a pivotal moment in our corporate history,” he stated in the company’s Board of Directors’ report for the year.
Significantly, production targets were exceeded across all product streams in 2024. Methanol and ammonia output jumped to 1,538k MT in 2024, up from 1,168k MT a year earlier. The increase was due to effective plant utilisation – 106 per cent for methanol and 113 per cent for ammonia. The LPG plant, on the other hand, achieved 117 per cent utilization, contributing to a 8.5 per cent increase in LPG output. Production of LPG products - propane, butane, condensate and LPG (cooking gas) – rose to 364k MT in 2024, up from 336k MT a year earlier.
Commenting on the company’s operational performance, OQBI CEO Khalid al Asmi added: “Production at the methanol and ammonia plants has reached its highest level since the commissioning of the plants in October 2024. Furthermore, the LPG plant has surpassed its annual nameplate production of 350,000 MT for the first time in our history.”
Located in Salalah Free Zone, adjoining the Port of Salalah, OQBI – part of OQ Group - owns and operates an integrated complex of three advanced plants with a combined nameplate production capacity of 1,816 ktpa. The plants process rich and lean natural gas feedstock supplied under long-term agreements with the wholly state-owned gas shipper, the Integrated Gas Company (IGC), through the gas transmission network.
While part of the LPG (cooking gas) is sold domestically in Dhofar Governorate, the rest of OQBI’s products are sold pursuant to long-term, arm’s-length exclusive take-or-pay offtake agreements with OQ Trading for export to end markets, principally in Asia and the MENA region and, to a lesser extent, Europe and Africa.