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OQ Basic Industries posts 70% profit surge, exceeds Q1 production targets

OQ Basic Industries Corporation reported a remarkable 70.6% jump in net profits for the first quarter of 2025, reaching RO 12.8 million, up from RO 7.5 million in the same period last year.

TAS News Service

info@thearabianstories.com

Saturday, May 17, 2025

Muscat: According to the company’s unaudited financial results, total revenues surged by RO 9.2 million to RO 55.5 million in Q1 2025, reflecting a 19.9% year-on-year growth. This rise was mainly driven by higher methanol selling prices and a 60.4% increase in ammonia sales volume, contributing RO 3.4 million, along with a boost in LPG sales worth RO 3.1 million.

Khalid bin Khalfan Al Asmi, CEO of OQ Basic Industries, noted that the company’s adjusted EBITDA climbed 17.3% to RO 24.7 million, up from RO 21 million in Q1 2024. This was supported by higher revenues and cost savings, despite increased natural gas expenses (RO 1.5 million), a provision for virtual gas (RO 4.6 million), and other cost increments.

Operationally, the company recorded a total production of 389,000 tons of methanol and ammonia, up 7.5% from 362,000 tons last year. Plant utilization hit 102% for methanol and 101% for ammonia, reflecting efficient operations. LPG production saw a marginal decline of 3.4% to 84,000 tons due to a slight dip in plant utilization.

On the sustainability front, the company highlighted certifications earned by its methanol, LPG, and ammonia plants for excellence in environmental, health, safety, and quality management systems. Al Asmi underscored that these achievements reinforce OQ’s commitment to risk management, operational efficiency, and alignment with national economic goals.

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