OQ Exploration and Production (OQEP) reported a 25.7 per cent increase in net profit to OMR114.7 million ($298 million) for the first nine months of 2026, supported by higher realised oil prices, increased gas sales volumes and improved operational efficiency.

Revenue rose 12.3 per cent year-on-year to OMR392.1 million ($1.02 billion) for the period ended 30 September 2026, compared with OMR349.2 million ($907.8 million) in the corresponding period last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 12.2 per cent to OMR321.5 million ($836 million), while adjusted cash flow from operations grew 13.4 per cent to OMR190.5 million ($495.2 million).

The improved financial performance was driven by a 13.8 per cent increase in the average realised oil price to $82.6 per barrel and a 14.5 per cent rise in gas sales volumes to 104.9 billion standard cubic feet (bscf).

Oil and condensate sales volumes remained broadly stable at 16.9 million barrels.

OQEP also reported a 14 per cent reduction in unit operating costs, which remained below $9 per barrel of oil equivalent, reflecting improved operational performance and cost management.

Average production reached 228.6 thousand barrels of oil equivalent per day during the first nine months, comprising 53 per cent oil and condensate and 47 per cent gas, exceeding both the previous year's level and budget.

The company invested OMR77.3 million (US$200.9 million) in capital expenditure, including OMR75.1 million in oil and gas properties and OMR2.2 million in exploration, supporting production sustainability and future growth.

OQEP maintained a strong financial position, with its net debt-to-EBITDA ratio improving to 0.15 times from 0.22 times in the same period last year. Return on capital employed also increased to 68.2 per cent, compared with 50.2 per cent.

On the operational front, the company maintained strong health, safety, security and environmental (HSSE) performance, with key safety indicators outperforming the corresponding period in 2025.

Strategic projects and expansion

OQEP continued advancing its portfolio development strategy, with progress across several domestic and international projects.

At Block 48, the company is progressing exploration and appraisal activities towards a potential final investment decision in 2027.

Block 47 entered its second exploration phase following the signing of production-sharing agreement amendments, while additional drilling and new discoveries at Block 9 were integrated into the production network.

The Marsa LNG project exceeded 65 per cent construction completion and remains on track for commissioning in 2028, positioning OQEP to access the marine fuels market.

OQEP also expanded its domestic exploration portfolio, with the Block 80 Concession Agreement becoming effective in September.

The company additionally signed exploration and production-sharing agreements for Blocks 36, 66 and 43A, securing 100 per cent participating interests in each block.

Internationally, OQEP signed a strategic collaboration agreement with Kazakhstan's KazMunayGas to evaluate potential energy investment opportunities between Oman and Kazakhstan.

Shareholder returns

OQEP delivered a total shareholder return of 40 per cent during the first nine months of 2026.

The Board approved a third-quarter base dividend of OMR22.2 million ($57.7 million), with a cut-off date of 25 November 2026.

A second instalment of the first-half performance-linked dividend, amounting to OMR7.4 million ($19.3 million), is also due on the same date. -OGN/TradeArabia News Service