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

[Foreign Language] Good afternoon. A warm welcome to all the participants to the Shareholders and Analysts Meeting for presentation of Financial Results of Gulf Hotels Oman Company Limited, SAOG for the 6 months period ended 30th June 2026. I am Yogish Mallya, Compliance Officer and Company Secretary; and with me are Mr. Herve Corvest, General Manager; and Mr. Daniel Kazem, Director of Finance. With this, I request Mr. Daniel to start with the financial results.

Good afternoon. Our total revenue for the first 6 months of 2026 were OMR 3.5 million compared to OMR 3.6 million last year. Our profit before income tax, OMR 147,000 for 2026 compared to OMR 448,000 for last year. Net profit for the period, OMR 126,000 compared to OMR 379,000 for last year. Thank you.

As you can see from the results, the main reason for decrease in net profit is the increase of depreciation from OMR 218,000 last 6 months to OMR 408,000 this year, these 6 months. And also increase in finance cost from OMR 895 to OMR 73,931. This is mainly due to the renovation -- rooms renovation project that we had last year. So, going to the second slide of the presentation. The statement of financial position. Property, plant and equipment has increased to OMR 31,207,380, compared to last year June's OMR 29,355,308. This is mainly due to the new assets added during the rooms renovation project. Cash and bank balances as on 30th June is 100 -- 1,213,847 compared to last 6 months, OMR 1,637,139. Total assets OMR 32,746,120, compared to last period's OMR 31,532,655, and the borrowings number is showing at 2 million which is non-current, OMR 2,032,000, and current borrowings is OMR 600,000. So, total borrowing as of 30 June is OMR 2,632,000.+ Total liabilities is 32,746,120, compared to last year OMR 31,532,655. We have next slide of statement of changes in equity, and next slide after that is the statement of cash flow for 6 months period ended 30th June. So, the cash flow -- net cash flow from operating activities is OMR 409,841 compared to last year's OMR 404,366. Net cash flow from investing activities is minus OMR 30,618 compared to minus OMR 1,202,047. Net cash from financing activities is minus OMR 909,595 compared to last year's OMR 1,131,077. Net increase in cash and cash equivalents is minus OMR 530,372 compared to last year's positive OMR 333,396. So, the main cash outflow is -- as a result of higher dividend we paid in March of OMR 685,664, and also repayment of borrowings of OMR 150,000. The next slide is revenue mix for the 6 months period ended 30 June. Room revenue, F&B, and other revenue has more or less remained the same compared to the last 6 months period. So, with this, we have come to the end of the presentation. If you have any questions, please welcome.

We got one question from Saqib.

How has been the overall occupancy and ADR for the hotel? And how does it compare with the hotel industry in the Muscat?