Al Batinah Power Company SAOG (BATP) Earnings Call Transcript & Summary

[Foreign Language] Good morning, everyone. Welcome, everyone, for the MSX discussion session for Al Batinah Power for the operation and financial results of H1 2026. The agenda of today's session is HSSE, which will be followed by technical and financial performance and the post-PPA opportunities. The first agenda is health, safety, security and environment.

Thank you, Faraz. We will brief you on all the health, safety, security and environment for the company. We are pleased to report that the plant has achieved 5,272 days without lost-time accidents. So for end of June '26, there was no lost-time accident and also no -- 0 environmental incidents. The company maintained the ISO certificates, which are the international, the first ISO Quality Management 9001, and ISO Environmental Management 14001 and also the Occupational Health and Safety certificates. Moving to the technical performance of the plant, also it's showing an excellent performance -- results to the first half of the year. And the guaranteed power capacity remain at 736.53 megawatts, and plant reliability was 98.80%. Similarly, the load factor, which was achieved during the first half was 72.9%. The thermal efficiency remained stable for the first half of 2026, which also shows efficient plant and maximize growth of -- the value of the shareholders.

Regarding the financial performance, as you can see, the half year 2026 results are better by the same period last year by $1.3 million, you can see from the waterfall. This is actually mainly due to, gross profit was decreased because there was some O&M related expenditure, upgrade this year, however, the net results were better due to reduction in interest costs due to scheduled repayment of loan. Next is future strategy and plan. Dividend, the company distributed dividend in June and will also be able to make future dividend distribution subject to availability of cash as per past trend. Plant outage, in future during Q4 2027, we have a major maintenance for the gas turbine, which will result in higher maintenance cost. The company has executed a new PPA on April 7, 2026, which will commence on April 1, 2028 for a period of 15 years until 2043. The opportunities and challenges. So opportunities, as we have already got the extension, Sohar 2 is a highly efficient plant due to its technology. We are also planning for the potential merger between Suwadi and Batinah. Refinancing opportunities are there, expected high demand growth in the market. Challenges is for market, quality is here, emerging of new technologies to the electrical grid, plant cycling after adding more renewable projects. So these are the expected accumulated challenges, which we can see. Disclaimer, this presentation is not and should not be construed as an offer, invitation or recommendation in the respect of company security, neither this presentation nor anything stated in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any investor. Any future outlook statements or commitments are associated with known and unknown risks and uncertainties. Hence, this presentation provides no guarantee or commitment for any future results nor expressly or nor implied. The financial information included in this presentation is of public knowledge disclosed to the market on MSX website, and it is for information purpose only. Now we will open the platform for any questions from any investor.

So if anyone has any question, raise your hand and introduce yourself and which company he belongs. Anyone has any question, we are happy to answer. Yes. Manna Thomas.

This is Manna from United Securities. I have a question regarding your refinancing. Can you give the expected time line for when this is expected to happen? And would this cover the existing debt only or for the new CapEx for the new PPA period.

Thank you Manna Thomas. So regarding the refinancing question, so we are still in the process and still negotiation are going on and this is subject to again with the approval of the authorities. So till now, we have not reached to that progress that we can disclose. So once we have the approvals and we reach to some progress then accordingly we will also inform all the shareholders on the MSX. Second question regarding your refinancing amount and the future CapEx. Yes, we will be exploring those things in our refinancing how to cover our future CapEx plus the current debt. So again, these are under discussions with the expected lenders and we will again inform whenever we will reach to some major progress. Regarding your third question, when we are expecting to finish? So as you are aware in our financials that we -- our next payment will be in October. So we are targeting that. But again, this will be subject to authority approval.

And also you have mentioned in the presentation that there would be a major maintenance in the fourth quarter 2027 before the start of the new PPA. So what would be the estimated cost for that? And is it already built into the current impairment or the refinancing CapEx?