Dhofar Generating Company SAOG (DGEN) Earnings Call Transcript & Summary

Okay. I'll be starting and Assalam Alikum everyone. And welcome to Dhofar Generating Company [indiscernible] for first half 2026. In this call our discussion on this new company, a move lower in the slide with [indiscernible] and I'm repeating this session. So as usual statements for the next half of the year, also having to discuss the overall operation deposits or the [indiscernible] month. So we have a [indiscernible] go through after that in [indiscernible]. I'll hand over that to my collegue Amer Al Mashani. [indiscernible] presentation.

Thank you, Amer. I appreciate that. So I'll be covering the financial update for the period, and then we will go to the business performance of the company. And finally, we will go to the question and answer. So as you can see on the financial update, the revenue is OMR 37.1 million for the period, which is basically higher than last year period by OMR 4.5 million, and that is mainly due to higher load factor. Also, as you can see, the gross profit and net profit after tax is basically lower than last year period, and that is mainly due to the higher operational and operational expenses, including the major maintenance of the 273-megawatt plant and the heat rate inefficiencies. Also in the financial analysis, I would say that like all the capacity payments are recovered on time. For the business performance, the availability is 99.70% for the year of 2026 and 99.54% for the year of 2025. The load factor is 50.95% for the year of 2026 and 28.96% for the year of 2025. On the other side, for the 445-megawatt plant, the availability is 99.47% for the year of 2026 and 99.02% for the year of 2025. The load factor is 56.83% for the year of 2026 and 61.91% for the year of 2025. On to highlight for over 11 years, PGC has maintained an impeccable safety track record with zero lost time incident and more than 3 million safe man work hours. Land performance is a direct result of the operator proficient approach towards operations, maintenance and HSE principle. Robust, productive and preventive maintenance procedure performed to ensure high reliability to the assets. Annual performance is successfully conducted in March and April 2026. The company has met its obligation to the lender by timely debt service of OMR 5.8 million. Now before we go to the question and answer, there is a disclaimer, which I would like to read it for you. So this presentation contains statements and comments relating to the generating company and its businesses, financial position and other matters. This presentation, it is content and the discussion held in relation to this presentation do not constitute and should not be considered to constitute by constructed as an offer, invitation or recommendation in respect of the company's security. All statements and comments other than statements of historical facts should be considered as forward-looking statements and such statements, comments, projections, estimates and expectations should not be taken to imply any indication, assurance or guarantee of future performance. The financial information included in this presentation is of public knowledge that disclosed on the AMEX website and it is for information purpose only. So now we can go to the question and answer. If there are any question and answer, we will be glad to answer.

I would like to -- if you can shed more light on your operating cost because I see that it is on the higher side. You mentioned something about the maintenance of the plants, but I just -- I have no background on that. So if you can just shed light on that, please?

[indiscernible] Performance. Yes. If you look at the gross profit, it's also on the lower side comparison even though the revenue has gone up. So I need -- if you can shed light on the operational cost. I see some gap -- can you hear me.

[indiscernible]

No operation cost. Yes, I need to understand the...