A'Sharqiya Investment Holding Co. (SAOG) (SIHC) Earnings Call Transcript & Summary

Thank you very much for joining in today. This is the first of the analyst meet for this year. And this is in reference to the financial statements of 2024. I'm open to questions or if you want me to explain some points, which you feel is relevant, I can do that, please advise, how do you want to go about it. Well, I assume you have seen the financial statements, which have been posted on the website. And the company A'Sharqiya and its subsidiaries have posted a net profit of about OMR 625,739 for the financial year ended 2024, as compared to OMR 491,578 for the year 2023, primarily on the back of a more better dividend income. We have in -- our bond portfolio has been doing quite well. So there has been an overall appreciation in the financial position and investments for the company. But if there is any specific questions that you want me to address, please do let me know, so that I can be very focused in our -- in my explanation to you. Any questions?

Yes, I have a question, if I can continue. There's a lease agreement with Oman LNG would have expired in December 2024. So can you provide some more insights on this? Was there any negotiations which is going on for renewal or will the tenor be same? Can you provide some insights on that?

Sure. Thank you. Yes, the Oman LNG agreement -- the previous agreement was -- were up to December 31, 2024. And in the past couple of years, we have had conversations on that. And we have a kind of in-principle agreement for an extension for another 5 years. Of course, this -- so the paperwork is in progress, and we expect it to be completed soon, because this -- but essentially, it is a continuation of our relationship with Oman LNG. Of course, this is something that we will have to confirm to you only after we have all the paperwork in place. But the relationship is strong. So we expect it to continue.

Okay. So will the terms be the same? Or is there any changes? I just want to understand the finance income will be same in 2025 as compared to 2024?

We -- I mean, it is a little premature to make that comment, but it is at very favorable terms because it's a SAOG company, I'm not at liberty to reveal the specifics. But you will see that in the next financial statements, where the financial statements will reflect that. What I can confirm is that we have an in-principle agreement with the relationship and at favorable terms. And I'll have to leave it at that because legally, I'm not allowed to make any specific comment on the specific terms. Any other question? In terms of our financial statements, we continue to kind of look out for opportunities in the investment space. We have a fairly strong public equity investment and a fixed income investment, which is giving us strong pipeline in terms of finance and interest returns and appreciation. I think going forward, we will continue to do that. As I explained to you, our engagement with Oman LNG for our real estate portfolio remains strong. So that will -- is expected to continue. And in that sense, the company is well positioned in terms of growth and in terms of stable financial performance. I would encourage you to ask questions so that I can address those specifics rather than reading out things from the balance sheet. No questions?

Okay. Just one last question. Will there be any other -- are you exploring any other further projects?

Sorry?

Are you exploring any other further projects to add to the portfolio?

Any other, sorry?

Projects.

Well, if you look at our balance sheet, we do have a lot of dry powder in terms of our ability to invest. We are constantly in the market trying to look at new opportunities. And we are looking at a couple of projects but they are at a very premature stage. So it is not correct on my part to talk about it. But to answer your question, yes, as an investment holding company, we definitely are on a lookout for adding more assets to the book, sustainable assets, which focus on sustainable cash flows, reasonable return and growth profile. Now at this point in time, we are kind of exploring opportunities, but nothing that I can confirm at this point in time because there is a lot of negotiations that happen, and it would be premature to comment on any of those. If you notice, we have a pretty strong balance sheet, both in terms of cash, in terms of deposits, and a fairly strong portfolio of both fixed income, [ FOCI, FEDPL ] assets and debt instrument. So in terms of our capacity to expand the book, yes, we are well positioned for that, yes. Mr. Manigandan or Mr. Peter Nelson or Mr. David, you are welcome to ask any questions that you have. We have our AGM, which is scheduled for today later in the evening. And as has been announced in the stock exchange, the Board of Directors at the AGM has proposed a dividend, which is subject to approval at the AGM, which is to be held today -- later in the evening today. And that is another information, which I wanted to share with you. And other than that, I have no other specific area which I wanted to highlight. So if there is no other questions, we can close this meeting at this point in time. Thank you, and thank you for your questions. And I appreciate you being on the meet, and thank you very much, and have a good day. I will close this meeting because there's no further questions. Thank you. Have a good day.