Muscat: According to the company’s unaudited financial results, OQ Exploration and Production successfully offset a 16 per cent drop in realised Oman crude prices through increased gas sales and the settlement of delayed oil and condensate sales linked to postponed production sales.

The company posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of RO 226.7 million, reflecting a 6 per cent decline compared to the first quarter of 2025. However, it maintained a strong EBITDA margin of 76.5 per cent, underlining operational resilience amid challenging market conditions.

Adjusted operating cash flows remained stable at RO 140 million, supported by additional cash inflows from higher oil and condensate sales during the quarter. Meanwhile, the company’s cash balance rose by 40 per cent to RO 167 million, contributing to an 18 per cent reduction in net debt, which stood at around RO 216.3 million.

The debt-to-EBITDA ratio improved to 0.24 times compared to 0.27 times in the same period last year, while return on working capital increased by nearly 6 per cent to 50.8 per cent following the reclassification of loans into current liabilities.

Operationally, total production increased by more than 1 per cent year-on-year to 224,000 barrels of oil equivalent per day, driven by improved operational performance across assets.

Capital expenditure during the first quarter reached RO 62.6 million, marking a 9 per cent increase compared to the same period in 2025, mainly due to increased drilling activities. The average production cost remained competitive at around US$9 per barrel of oil equivalent, below the company’s 2026 ceiling estimate of US$10 per barrel.

On the expansion front, the company signed a new exploration agreement with the Ministry of Energy and Minerals and Petronas for concession area No. 18, an offshore exploration block covering around 21,000 square kilometres.

The company also reported significant progress in its future growth projects, with the LNG bunkering project surpassing 48 per cent completion.

Mahmoud bin Abdullah Al Hashmi, CEO of OQ Exploration and Production, said the company’s financial and operational performance during the first quarter reflects its ability to deliver shareholder value despite lower oil prices and regional energy supply challenges.

He added that the strength of the company’s asset portfolio helped drive production growth while maintaining commitments to health, safety, environmental standards and operational excellence across all projects and operations.

The Board of Directors also approved the company’s 2026 dividend policy, which includes annual base cash dividends of RO 230.7 million to be distributed quarterly, along with the possibility of additional performance-linked dividends.