OQ reports $4.4 billion in losses

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هذه الصفحة متوفرة بهذه اللغة: العربية

11 July 2021

MUSCAT (WAF)- Oman’s state-owned energy group, OQ, has reported 1.7 billion Omani Rials ($4.4 billion) in losses in 2020 compared to a net profit of 231 million Omani Rials ($600.6 million) in 2019, the group’s audited consolidated financial statement shows.

According to the financial statement obtained by WAF News, the group’s revenues declined from $19 billion in 2019 to $14 billion in 2020. As a result, OQ’s gross profit dropped by 49% to $654 million in 2020.

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The group has also incurred impairment losses of $3.5 billion, resulting in operating losses of $4.1 billion and a 13% decline in the assets’ value from $29.4 billion to 25.5.

OQ has over 80 subsidiaries in Oman and most of the continents. Including 19 companies incorporated in European countries, ten companies registered in the Cayman Islands, 4 in the United States of America, 3 in East Asia, 3 in Bermuda and 3 in South America. In addition to stakes in 13 sister entities in Oman, UAE, Korea and East Africa.

In 2020, OQ divested its interest in several companies, including its 8.8% stake in Oman Shipping Company (as of the end of 2019), to Oman Investment Authority (OIA), which transferred the shares to Oman’s logistics group, Asyad. OIA is the country’s sovereign arm with 170 State-Owned Enterprises (SOEs) under its umbrella, including the OQ and Asyad groups.

OQ has also divested its shares in Takatuf Oman, Innovation Development Oman and Minerals Development Oman to Oman Investment Authority.

Internationally, OQ sold its 26% stake in India’s Bharat Oman Refineries Ltd in a deal worth approximately $326 million, as announced by the new owner, Bharat Petroleum Company Ltd, in February of this year.

It has also divested its 30% stake in each of China’s Quingdao Lidong Chemical and Quingdao Lixing Logistics for a total of $97.24 million.