Gulf Hotels (Oman) Company Limited SAOG (GHOS) Earnings Call Transcript & Summary

[Foreign Language] Good morning. I'm Yogish Mallya, Compliance Officer and Secretary to the Board of Directors, and I'm joined by my colleagues, Mr. Hervé Corvest, General Manager; and Mr. Daniel Kazem, Director of Finance. We cordially welcome you, all shareholders and analysts to this MSX discussion session on audited financial statements for the year ended 31st December 2025. So with this, we will start the presentation, please. We'll first start with the financial statements, statement of financial position. So as you can see, there is an increase in property, plant and equipment from OMR 28.349 million to OMR 31.561 million. This is due to assets that we have added during the year 2025 for rooms renovation project, which was about -- the increase was about OMR 3 million, OMR 3.2 million. The bank balances as on 31st December is about OMR 1.7 million compared to OMR 1.3 million or OMR 1.8 million, including the term deposit for 2024. The retained earnings were OMR 1.947 million compared to OMR 1.879 million for last year. And the increase in bank borrowings is due to the term loan that we borrowed from commercial bank for the rooms renovation project. The total amount drawn from the term loan is about OMR 2.8 million. And the net assets per share is OMR 7.35 compared to OMR 7.33 last year. So we will next go to the statement of comprehensive income.

Good morning, everyone. The total income for 2025 was OMR 6.9 million compared to OMR 7.6 million from 2024. Profit from operations, OMR 512,000 compared to OMR 1.007 million in 2024. Net profit and total comprehensive income for the year, OMR 411,000 compared to OMR 872,000 in 2024.

So as you can see, there is a decrease in total revenue and net profit. This was due to the closure of hotel for about 3 months, 3 months and a few days in 2025 for the rooms renovation project. So there was a complete closure of the hotel. So that is the reason for decrease in total revenue and net profit. So the next one is statement of changes in equity. During the year 2025, we had paid a dividend of belonging to 2024, which was OMR 342,000 and then there is a net profit OMR 411,000. At the end of period 31st December 2025, the retained earnings is OMR 1.947 million. Next statement is statement of cash flow. So the total net cash generated from operating activities is OMR 1.326 million. And cash flow from investing activities, here you can see the purchase of plant machinery equipment is OMR 3.7 million, which is basically including the rooms renovation project of about OMR 3.6 million and other routine replacement of other assets. So here, this is the term loan, which is availed for the rooms renovation project, which is OMR 2.782 million. And the cash and cash equivalents at the end of the year is OMR 1.744 million. The next 2 slide is split of revenue. You can see F&B revenue was OMR 3.47 million compared to OMR 3.873 million. Rooms revenue was OMR 3.237 million compared to OMR 3.5 million. Other revenue is OMR 257,000 compared to OMR 175,000. Total revenue is OMR 6.912 million compared to last year OMR 7.618 million. The occupancy of the hotel was 78.5% compared to 73.8%. And the ADR is OMR 75,530 compared to OMR 63,200. But we would like to mention that the occupancy and ADR were calculated only for the period when the hotel was operational, and this is excluding the 3 months period where the hotel was closed. So with this, we have come to the end of presentation of financial statements. We will be happy to take any questions if you have. Please go ahead. Any Questions? Naeem, are you there?

Yes, I can hear you. It seems there's no questions.

Yes. Thank you.

Thank you.

Thank you all. Thank you for attending this MSX discussion session. Naeem?

Yes. Just now I stop the recording.

Okay. Bye.

Thank you so much.

Thank you.

Okay. Bye.