Al Maha Petroleum Products Marketing Company SAOG ($MHAS)

[Foreign Language] Good morning, everyone. Welcome to this quarter 1, I think...

Full year.

This is the last -- I mean the last quarter of 2025 results. So we are starting the sessions for the investors and interest. In the right hand, I have the CFO of the company, Mr. Hiriyanna; and the other side on the left is Mr. Saleem Al-Balushi. He is Legal Manager and also Investor Relations responsible. So welcome for these sessions. We already have -- I mean, welcoming you and very interested to hear from you the feedback or any notes or any questions you have. But first of all, we will start with the presentation. The CFO will present it to all of you. So yes, Mr. Hiriyanna, please.

[Foreign Language] Good morning to you all. And yes, the Al Maha in 2025, we had another good year and it's consistent with the expectations and we already presented all the financials according to the financial statements and [indiscernible]. Just we'll go to 2 slides for the performance summary. And I will start with the income statement. Here, you can see the sales -- Al Maha registered total sales of OMR 505 million in 2025. And as you can see, the gross profit has gone up by 1% from OMR 20.3 million to OMR 20.6 million and other income also has gone up by 5% from OMR 6.8 million to OMR 7 million. So overall, our total income has gone up by 2% expenses, that's from OMR 35.1 million to OMR 35.7 million. Coming to the expenses, operating administration expenses have gone up by 5% that is offset by the decrease in amortization by 4% and finance expenses also have gone by 25% due to the reduction in the interest rates that we've seen in 2025. So overall, net profit before tax has gone up by 3% from OMR 7.1 million to OMR 7.2 million and net profit after tax has gone up by 2% from OMR 6 million to OMR 6.5 million. So that's an increase by 2%. As you can see from the key performance indicators [indiscernible] 5.2%, net profit is shown 5.1% and earnings per share has gone up by 2%. And Al Maha, we are maintaining a consistent dividend every year and so where we shared a dividend of [ 85% ], same as last year, which is close to around 95% of the net profit. So [indiscernible]. So this is about the income statement summary. And about sales growth, we've seen [indiscernible] growth of 15% last year. Lubricant value growth is almost 6% [indiscernible] which has gone up by 4% in the last year. [indiscernible]. This [ concludes ] the income statement review, and we'll review the balance sheet quickly. And as you can see here that [indiscernible] [ OMR 41.6 million ] to [ OMR 48.2 million ] and current assets [indiscernible] by 2% from around OMR 14 million to around OMR 17 million and overall total assets have gone up by 6%, that is [indiscernible] to OMR 165 million. And in terms of liabilities, overall liabilities have gone up by 8%, total liabilities from [ OMR 108 million ] to OMR 117 million. With equity, equity has gone up by 1% [indiscernible] [ OMR 36.8 million ]. And net assessment of share has gone up by [indiscernible] and market price per share also has gone up by [ OMR 0.30 ] from OMR 1.041 to [indiscernible]. And market capitalization also has gone up by 897 [indiscernible] OMR 71.8 million to OMR 72.7 million. So that's around 1% growth. So that's all to present. And I'm sure you have gone through all the [indiscernible]. So we would like to hear from you any questions of any clarifications you need, and we are happy to address those issues now. Over to you, [indiscernible].

My name is [ Deepak ]. I just have a couple of questions. One question is regarding the number of fuel stations that you have. You have mentioned 252 in your Chairman's report -- 245 -- I'm sorry, 245. And you have said that there has been a growth. But when I check the previous year's report, it says 252. So what exactly am I missing out here? Is there a growth? Or have you actually closed down the number of stations? Can you just clarify that?

Yes. Thank you. This is really very interesting because there is -- it looks like there is figures mismatch for the last year and the year before. But in fact, it is not. Some of our fuel station, which is not in operation now because it is in revamp. So when the station is revamped or not in operation, we didn't calculate it as operational. But in the asset itself is available. So that's the reason why because we have about 8 stations now revamped or renewed for new branding new look, but it is not in operation, not active yet.

So the actual number of stations would be 253, that's 245 plus 8.

Yes. And we add maybe about 4 new also. So it will come -- by the end of this year will be 256.

So as of 2025, can I say it is 253?

Yes, you can.

Okay. So you are probably the most aggressive fuel retailer in Oman, and that's a good strategy that you have been following. And I just wanted to understand, since you have been having so many years of experience in the industry, how do you understand the growth? Is it saturated? Do you see demand from any particular area that is coming in? By adding more stations, do you see the throughput also matching the growth? I just want to understand your view on this.

Actually, yes, we are a bit aggressive in expansion in the country. But what we do now, we are focusing more in the main or the central of the city and where is there what you call high residential or high population. Also, as our business plan, we are actually -- we are doing a bit of diversification or a bit of very high utilization for the -- very efficient utilization for the sites. So we choose sites where there is -- yes, it is -- there is a growth on it. And at the same time, there is also other activities needed to be available. So the main expansion we are doing now, it is to a nonfuel business as per our business plan. And of course, the fuel will be available. We didn't see still there is a risk to build a new fuel station in areas which we are chosen because the growth is, yes, there is. The economy is growing very well. And as you know, and there is a demand going on. But some of the station, we put it, the main business will be in the very near future is not only the fuel. The main business and the main income for the company will come from the other activities, which is related to the fuel, which is complete the ecosystem of mobility in that area.

Because when I see the retail fuel growth in Oman, it is 1%. So I was just wondering if there has been a saturation in demand and additional stations, would it actually benefit? So that was the question.

As a number, if you see the numbers, yes, but there is areas which is still not yet covered with all the services required in the fuel station. What we do actually now, the growth is 1%, yes, correctly. But there is activities like we have long contracts with, for example, BDO. We need to satisfy some fuel station there for their own business. That's commercial side. Also, we have a commitment in our business plan to what other activities, which is when we come to that place or that location, we put the fuel station [indiscernible] for us at the same time as the main business still for this company. So that's why there is at all no -- there are no any risk from that we can see. But in the same time, what we are expecting, [indiscernible], the income will come directly from nonfuel business activity because as everyone know now, we are entering the hydrogen, for example. And hydrogen philosophy we are entering in is injected with the diesel or heavy trucks and heavy movers of vehicles to boost the efficiency. So we need also to be available. This is one of the activities. It is now in process of implementation. We have also the activity of vehicle testing where we are saying, "Okay, we will do vehicle testing. But at the same time, we need to complete the ecosystem of Al Maha, which is also we need to have our fuel station. These fuel stations of very smart, can be changeable any time to other utilization like, for example, one of them is 98. Now we have 98 plus, which -- 95 plus which we call [indiscernible]. All these businesses is with the existing or the new locations where we are available. So the availability of Al Maha, you can notice it in the market for the new -- any new fuel station is not only the fueling, is not only retail for pooling, it's also for other nonfuel business, which is part of our philosophy in the business plan and part of the ecosystem we are doing in the projects itself to maximize, of course, the benefit of the shareholder and also the benefits of the stakeholder.

That is very clear. So can I assume that you'll add another 4 stations in 2026? That would be the guidance?

Yes, there will be 4 station, but this is -- also this station is equipped with the vehicle testing business or activity, nonfuel, which is the nonfuel business and hydrogen and the fueling also and of course, electric vehicle or EV chargers. All of this will be in the same place. And this is what we can assure you by the end of this year, some of them here in Muscat, 2, I think, and others in Nizwa and in [indiscernible]. Anymore questions? Anymore clarifications?

No. Anybody else, anyone else having any questions?

Just one last question regarding the current scenario. Has there been any incidents in any of your areas or stations? Or has there been any disruption of any kind that will affect volume for this quarter?

Until now, we don't have any incidents [Foreign Language] and everything is going smoothly. So I hope this continues [Foreign Language].

I asked because many of your stations are in the border. So has there been a volume decline in those stations? Any impact due to the attack?

No, no any issues, no any safety or any risk in the fuel station to this moment. And we hope to continue that. The only good things, it's very high activities in these fuel stations, and it looks like the demand increased more and more till now.

During the mobility -- mobility of people coming from Dubai to Oman and [indiscernible] is...

So there's actually been a volume growth in the quarter.

Yes. Volume, that has been very...

Yes. That's the only activity we see, but there is no any risk at all. Even the fuel available for 24/7.

Fuel is available, there is no disruption?

[indiscernible]. Now this war, this strategic -- this situation -- war situation, is it giving any strategic advantage to Oman [indiscernible] geographically and economically?

I don't know if it's allowed for this to be told because we are business more than other activities we are doing. What we see -- in good thing, there is opportunity. In bad thing, there is opportunity always in the business. So we have to always be looking for positive. I'm looking forward to in the business side, especially. What I see Oman is -- yes, Oman always, they are very stable, very focused, very looking forward. The vision is very clear. So what we have actually in the country is really encouraging us to do more and more business. Other circumstances or other effects coming up, this is momentary. And momentary is not good for landing of the business, but it is good for taking a chance. And in the business, when we take chances positively, I think the game is always [indiscernible] and always on your side. So what I see is, yes, there is some issues going over here and there, but the business is smooth and no issues our side [Foreign Language].

Some of the force, Oman force, outside the...

Yes, that is a privilege, of course. And also, to be honest, the [indiscernible] and we have things going on and how it is [indiscernible] very, very perfect and going to the right directions. We don't like to talk about what's going on in the area because my focus is business I have only. So the second thing is we didn't see any negative effect. We see always positive and looking forward for this thing to be [indiscernible]. Yes, regarding the business itself, I'm very -- this year will be the last year for our business -- existing business plan. And we are preparing ourselves to go ahead with a new business plan. The existing one is a business plan which is -- there is a vision on it, which is -- and objectives. The objective is to start looking for more diversification not because we are not focusing in our main business, no. But we need to, I mean, encourage ourselves to do more maximization of utilization over there where we are worried for our projects and become more and more efficient, more and more multi-active business oriented, which results in better benefits for our shareholders and also for our customers, for all the stakeholders and related with [indiscernible]. So that's why we go outside. Saudi Arabia, of course, we are doing very, very well there. I mean everyone who are going to Mecca now, you can notice our fuel station on Jeddah-Mecca road. It is very noticeable. It's now under construction. When you come from Jeddah towards Mecca, it is in the middle almost. This is #17 fuel station in -- or service center called in Saudi Arabia. And we are available now in [indiscernible] locations in Jeddah and almost in Mecca. Not only for fuel, we are available for lubricants. We are available also for our [indiscernible]. This is the activity we are doing there internationals. And we are also in Africa. We are exporting also lubricants of different kinds of [indiscernible]. Here in the country, we are very focused in more and more mega stations or big size station, which is available for fuel, for new fuels and also electric vehicles. All the new station -- we are doing now very soon, you will notice there is [indiscernible]. And about almost 70 station will be [Foreign Language] next March of 2027. At the same time, we are doing this, I mean, other activities of nonfuel. Nonfuel business is really need because to do a complete service center, you need to be available in different activities in that location, which is based on a study for the market, study for the customer desires and also part of the -- all the circles of activities in that area. Especially we are entering in vehicle testing, vehicle hydrogen cleaning, vehicle service centers. I mean the customer who are attending or who are visiting that, they need also other activities like food, beverage and other what we resulted from the market research. Anyone who are available have any question, you need to discuss, we are really very happy and listening very carefully.

Can you please repeat the number of stations you have in Saudi? Is it 17 that I hear?

Yes, we have 17. 17 Fuel stations there in the brand of Al Maha.

And what is the guidance there? How many stations are you planning to add in Saudi?

We are very -- we need -- by the next year in 2027, we need to be 125 stations.

And this is through the franchisee [indiscernible].

Through franchise. That's why we have [indiscernible], yes.

And the current contribution in terms of revenue from Saudi would be how much?

We are looking forward to have good figures, but I didn't have the figure with me, but it is -- almost we are in the [indiscernible]. Maybe you have anything to that?

Yes, compared to -- it's not significant compared to...

Okay. Not significant.

But we see growth by 2027.

Saudi is known to be a very competitive market.

Saudi is a very competitive market, and it is bigger than here, but we are still 17 compared with 13,000 stations is not that much. 17 plus now under revamp and construction there. For some of them, we just only changed the logo. I mean 17 plus 13 on pipeline. This will be good contribution by the mid of maybe this year. We are looking about 5% to come from there as a revenue. But as a net, it will be, of course, less than that. But still, we are also need to enter there by AMPRO, our lube, which is the best in margin. And I hope that succession will add value for our income statement.

What about the oil prices, now gone...

Oil. Yes, the hike in the oil price yesterday, it was almost OMR 170 to OMR 173. It's affecting us in international business like bunkering and also in the aviation. But that's like a pass-through to the consumer or to the consumers. Our margin always available there. [Foreign Language] no any issues internally. The margin [indiscernible] and the tariff is also permitted tariff by the government. So there is no much impact except in the international jet fuels for airbase and [indiscernible].

Also, we noticed growth in electric [indiscernible].

I didn't see [indiscernible] until now. The country is almost 2,800 something like that. So the EV recharge -- or EV vehicles, but still it is not growing as planned. And the way -- from where I came, my background is electricity, as you know, I didn't see it is something will grow very fast because if you consume electricity for other industrial purpose, it is much better than consuming electricity for running the vehicles till now, because it's still very costly. At the same time, there is no -- the equation, there is no reductions, for example, in emissions or in other, no. You are just increasing cost by burning more gas. And the gas is very expensive now. It's not advisable to run vehicles by gas. You burn the gas to produce electricity or burn oil. There is a diversification in the system -- in the fuel or the fuel station or we call it now service centers. Because the desire and the like of the consumer or customers and stakeholders is changing, changing very much, changing to demand on other services. They need also they look for more to see [indiscernible] and other facilities required there, for example, the public facilities. All this is something called unique or [Foreign Language] Arabian. This is need to always be create and creativity in correct way results in better for the business. So when we done this market survey, we found our self-training, we are improving. The like and the certification from the customers and the visitors to our fuel stations and our location increased very good. From last year, we -- this year, we've done by January, 8% increase from the last same date. I feel this is really an improvement. We need to work more and we need to produce more ideas, more activities to satisfy the demand and requirement of the customer and the likes. It is an indicator that the company is going in the right direction. That's what we received from this market survey. And also, we are welcome for any notice, any ideas for improvement. This is really -- I love it to hear from anyone. Okay. Anyone on the online have any clarifications. I know it is Ramadan, end of Ramadan early morning. You will maybe still not that active. But I'm sure there is always someone have some clarification, some doubt. We are really listening and we can catch up. The hydrogen is -- there is 2 types of hydrogen. There is market for hydrogen for industry, and that's what the government is doing. And there is hydrogen, which is still the technology in mobility where hydrogen is not I mean the strong stage. Still, it is in the research because of mobility for hydrogen. Hydrogen needs to be compressed up to 32 bars in a cylinder, which is that you take your -- under your car a bomb or something very dangerous. But there is other way how to utilize hydrogen to increase efficiency of fuel. Like, for example, injected to the air system in the engine of diesel engine, it's really boosting the efficiency in the emission to be up to 95% or 90%. At the same time, it reduced the consumption of fuel in that engine by almost 30% as the last tests we've done it. We are doing now some tests in our truck, Al Maha truck. And we found this results from labs, they got it for us. So that's why the research is very encouraging. Now we have a unit which is under construction in our one of the facilities here in Muscat. So I hope this is really good, but it needs more marketing, more to educate people about this sources of energy. Yes, please. [Foreign Language]

Any more questions? Or you want just to talk about the performance?

How many online? [Foreign Language]. You told, 8? Okay. Let us talk about a bit of our new projects here in Ghubrah. We have a project in North Ghubrah opposite to [indiscernible]. This is one of the iconic we are doing. And this project is what I say a service center. That's the service center I mean -- or I meant when I'm saying a service center. This place is 23,000 square meters, equipped with many activities; fueling, of course, smart fueling. We have also service centers for vehicles, all type of vehicles, branded ones and all others. We have including laser jet car wash, facility for checking and testing the vehicles. Hydrogen unit would be available for cleaning systems also of the vehicle engine. We have business center, very good other nonfuel business like [indiscernible] international brand of some of them. We have also our -- maybe the first our what we call C-store, convenience store, and it is electronic convenience store or digital one, facilities for walking, facilities for sport, facilities for offices in the back side of that area. So all this is in one location. It gives more facilities to the visitor of the location of the place or the center and at the same time, give more and more services enhanced 24/7. So I hope that will be good enjoyable place once it's finished [Foreign Language] by end of 2026 or quarter 1 of 2027.

[indiscernible]

We have now -- if you know this, we have fuel stations or the location where we are with different branding. We do [indiscernible] and also facilities more. We have the other station, which is including the service for vehicle testing, which we took it over from [indiscernible] and gradually, we are going to take over the operation by mid of this year [Foreign Language]. There is also one of this will be in [indiscernible] center which is the old border of Oman that building, we -- Al Maha took it and we'll change it to duty-free equipped with all facilities of, I mean, stock point for -- there's [indiscernible] rooms, there is other facilities, which is now under construction or renovation of that building. There is fueling, vehicle testing, the imported vehicle and also the renew of the existing vehicles. We have also duty-free business, different kind of restaurant and cafe. It's a rest area for the passenger. And also it's good because it's plenty of working to all types of vehicles. So I hope that will serve the customers on that road and that border better [Foreign Language]. The second one, which is now under construction is in Nizwa and also have vehicle testing. They took over from [ RV ]. Once it's ready, there is facilities for shopping, fueling, electric vehicle, of course, for all our stations will be by the next quarter [Foreign Language] -- end of next quarter -- first quarter of next year. We will also -- Al Maha will introduce this what you call hydrogen in all these facilities. And it is -- if you notice all these facilities in a mega station or service centers, it's above 15,000 square meter each. For example, the one in is more than 24,000 square meters; [indiscernible] 23,000; [indiscernible] about 18,000. Because together all the facilities we are looking to do it and it's under implementation. The stage is under construction. [indiscernible] under construction, [indiscernible] under construction, Nizwa under construction and also [indiscernible] under construction. So this is the bigger project. We have the medium-sized projects, which is also under construction. We have one in bucket -- in fact, 2 in bucket; one is [indiscernible] and the other [indiscernible]. These 2 is medium-sized business center, including fueling. And we have a station in Khazaen under construction also, which is equipped with all the requirement of that promising city, Khazaen: fueling, ring areas, food, heating, drinking and also parking for the big trucks, including charging station and fueling and cleaning. So all the hydrogen story. All this is the activities we are doing. Internally, we have also implementation of a new [indiscernible], the latest [indiscernible] because the activities become more and more different kind of activities. This is need to have a strong [indiscernible] and that's what we are doing. Automation system. All the station now we have automated. We know the sales immediately [indiscernible] and also we know how it is going on in each [indiscernible] in each fuel pump and also what's going on the area through the camera system and operation has become more and more efficient [indiscernible]. Internally, we are doing also archiving. Our archiving system ready once [indiscernible] coming and ready, the [indiscernible] and all the business will be more and more digitalized. In localization and we are very, very well connected with the SMEs. All our business need SMEs. Transporters SMEs, builders SMEs, [indiscernible] also. So all these activities, we are encouraging and like to do more and more. And this is really very interesting. They are very efficient who are dealing with us and what we see from them. They are very, very efficient, very serious. Very, I mean, targeted companies. Also, we are having this mobile business, Fuely, is growing very well and serving a good state of the business in the country, especially providing fuel on sites. It's that you are coming to fuel new station, fuel station coming to you. And this is really very good services, [indiscernible] certification is really high. Omanization, we reached more than 95, and we are looking forward to have Omanis everywhere. I have only 2 person. CFO and the other person who are really -- thank them also for the activities. So the main office, the main business, except, of course, someone will ask, no one in fuel station. Yes, fuel station still there is no localization or omanization. But the other activities we have in the company here, and Omanis are really available everywhere. And that's very proud of it. Of course, thank for all the employees, everyone done this job. And thank everybody who are working with us on that target objectives. This is what we have. I talk about because there is no questions.

If you do not have any questions, then probably you can...

Yes, if there is no any more inquiry and clarification, any questions, it seems very clear. Everything is very well. And also if there is in future, and you feel just pick the phone, I mean, or drop an e-mail, we are very welcome to answer any inquiries. Thank you very much for today, and we hope all the best and [indiscernible] for everybody [indiscernible]. Thank you. And also happy year [Foreign Language].

Thank you. [Foreign Language].