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

Good morning, everybody. This is the analyst meet for the financial year of the second half of 2025 [ MCX ] discussion. So if you have any questions, maybe we can start with your questions or I could give you a quick brief about the company performance. How do you want to go about it? There doesn't seem to be any questions or I couldn't hear any of the members for their questions.

Okay. Please start with a brief on your company and -- okay. That comes from SM. Okay, good morning, SM. Well, to start off, this company for the year first half of 2025 has been on an even keel in terms of our performance. We are showing growth both in terms of the net asset per share, which is the primary reference as far as an investment holding company is concerned. When we closed the year in December 2024, we were at [ OMR 0.165 ]. Today, after the first half of 2025, we are at [ OMR 0.169 ] net asset per share. Now largely, that has come because of the fact that we have been invested in local equities. We have a fixed income portfolio and that as some substance has left us with a fairly good value, both in terms of our assets and in terms of growth. As you probably are aware, our relationship with Oman LNG continues. So the real estate division, which is a primary component of our investment holding is -- continues with -- after signing the 5-year extension of our lease with Oman LNG. So that relationship continues. In terms of our financials, in terms of growth, we have recorded good growth both in terms of dividend income, interest income. Our lease rent, which I told you is now in place for the forthcoming 5 years. And so from a point of view of revenue, we have shown good growth. We have been also managing to keep our costs under control. So that kind of adds up to our EPS or earnings per share at [ OMR 0.005] per share as far as the first half of this company is concerned. So when you compare it to the first half of 2024, we did [ OMR 0.004 ] and this first half of 2025 we have done [ OMR 0.005 ] largely by prudent cost management, improvement in dividend and income from our fixed portfolio -- fixed income portfolio. And of course, our lease rent income is also a contributing factor as far as this company is concerned. So that's like a quick brief. We continue to monitor our investments. We continue to look at new opportunities. When I say new opportunities, our focus has always been something where we can invest for the long term and create value as we go along, both in terms of revenue and in terms of sustainable cash flows. So that's a quick brief. I hope that kind of covers about the company and its investments. And if you have more questions, I'm willing to address that in specific area. Thank you. From a point of view of where we are because as an investment company, there is always the question about how do we kind of see it from a point of view of the interest rate impact. So we kind of have a fixed income portfolio, which is largely hold to maturity or intention is to hold it to maturity. And that has provided sustainable cash flows wherein we have invested in these in a range of fixed income bonds, and that's kind of keeping our cash flows in place. Our relationship with Oman LNG continues. Our lease rentals are sustainable. So from a cash flow point of view, from a growth perspective, I think we are hoping 2026 and probably if there is a rate revision by the Fed that would positively impact our portfolio with some capital position. Just wanted to add that as a further support to what I just mentioned in terms of our profile. Any other questions? A quick word in terms of what we see as far as the next 6 months. We are continuously monitoring for opportunities both here in Oman. As far as the GCC is concerned, where we are trying to look at investments both from a perspective of broad basing our existing portfolio. We have the cash or the dry powder, as they call it, and we are actively looking out for investments. And we'll keep you posted once we see any specific area where we have been able to invest. And that is the short- to medium-term outlook. I would encourage you to ask me questions because from a perspective of financial statements, I have covered the big picture and quite willing to address any specific areas of concern or areas where you wish me to detail any points that need clarification. No questions? I can't hear you, [ Tiffany Miller ]. If you could probably type in your question because I can't hear your voice, if you are trying to communicate. It seems there are no specific questions that needs to be addressed. So I will make my closing remarks here. Essentially, A'Sharqiya Investment Holding continues to focus on growing this company in terms of both net asset value, which is the focus area and at the same time making sure that we have adequate earnings as we go along. So from a real estate division point of view, from a bond portfolio, equity portfolio, we're trying to watch on all sides of the asset classes. There has been some challenges because of the current oil prices and the fact that GCC markets have shown some volatility, specifically in the Saudi market. So we continue to monitor that and we will try and address them as we go along and make sure that shareholders and investors in this company benefit positively from our efforts. You are welcome to reach out to me for any questions post this discussion. And my credentials are available on the website. So feel free to reach out to me. If there are no specific questions or areas that I -- that need addressed, I will conclude this meeting. And thank you for your participation. Thank you for your questions. Thank you.