15/05/2026 04:09 AST
OQ Exploration & Production (OQEP), Oman's oil and gas exploration and production company, has reported resilient unaudited Q1 2026 financial results.
Revenue for the quarter stood at OMR296.4 million ($770.87 million), broadly in line with Q1 2025, supported by higher gas sales and an under lift adjustment for oil and condensates.
These gains helped offset the impact of a 16 per cent decline in realised Oman crude oil prices.
The company reported a net profit of OMR71.978 million for Q1, 2026, a slight decline from OMR74.867 in Q1 2025.
EBITDA declined by nearly 6 per cent year-on-year to OMR226.7 million, though the company maintained a strong margin of 76.5 per cent, reflecting continued operational efficiency despite weaker pricing conditions.
Adjusted cash flow from operations remained stable at around OMR140 million, supported by higher sales volumes.
Profitability and balance sheet metrics improved over the period.
Return on capital employed rose nearly 6 per cent year-on-year to 50.8 per cent, while cash reserves increased 40 per cent to OMR167 million, driven by additional inflows from underlift positions.
Net debt fell 18 per cent to OMR216.3 million, with leverage improving to 0.24x debt-to-EBITDA compared to 0.27x in Q1 2025.
Operationally, OQEP reported steady performance across key indicators. Total production rose more than 1 per cent year-on-year to 224 kboepd, supported by improved field performance.
HSSE standards remained strong, with all safety and emissions metrics within target limits.
Capital expenditure for Q1 2026 reached OMR62.6 million, up 9 per cent year-on-year due to increased drilling activity.
Unit operating costs were contained at $9 per barrel of oil equivalent, remaining below the company's $10/boe guidance ceiling.
Strategically, OQEP advanced its exploration and development pipeline.
The company signed a new exploration concession with the Ministry of Energy and Minerals and Petronas for offshore Block 18, covering 21,000 square kilometres.
Meanwhile, progress continued on the Marsa LNG project, a marine LNG bunkering facility, which is now more than 48 per cent complete.
The board approved a 2026 dividend distribution policy featuring an annual base cash dividend of OMR230.7 million, to be paid quarterly, along with a potential performance-linked dividend.
Mahmoud Al Hashmi, Chief Executive Officer, OQEP, said: "OQEP's operational and financial results for the first quarter of 2026 reflect the company's capability to consistently deliver shareholder value, even in challenging conditions marked by lower oil prices and energy supply disruptions. The strength of OQEP's asset portfolio, its leadership in HSSE, and ongoing efforts to achieve operational excellence enabled the Company to increase production, sustain a robust EBITDA margin, and generate OMR140 million in Adjusted Cashflow from Operations. These outcomes were attained despite a 16 per cent decline in the average realised oil price compared to the first quarter of 2025."
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