Muscat City Desalination Company SAOG (MCDE) Q2 FY2025 Earnings Call Transcript & Summary

Good morning, everyone. Welcome to Muscat City Desalination Company MSX Discussion Session, the First Half 2025. I'm Megumi Kikuta, CEO of this company. Today, let me explain about our first half 2025 operation situation. So today's agenda is like this table of contents. First one is Operational Highlights. Second one is a Financial Highlights and the third one is Outlook. Operational Highlights, first of all, this is a company overview. Our companies name is Muscat City Desalination Company, and location East Ghubrah, Muscat. Our business is producing the drinking water from seawater desalination process. Our plant capacity is 191,000 cubic meter per day and my [indiscernible] is a Oman Power & Water Procurement Company and our contract signed, date was February 2030 and commercial operation started February 2016 and IPO was January 2018. Operational Highlights, on the left hand side, it shows [indiscernible] on the right hand side shows [indiscernible] 2:28. Our first half 2025 [indiscernible] 30.26 million cubic meter. The size was gradually decreased from last year. The size is 3.9% decreased for this ultimately very bad. Basically our water deliver output is based on, according to the [indiscernible] it means this first half, slightly a decreased [indiscernible] decreased of the -- this [indiscernible] was according to the [indiscernible] facilities improvement getting better that's why the efficiency surprise HSE is a slightly improved that's why the introduction reduced not the full of the a demand of decrease and right hand side is the plant availability. First one availability was a 97,000 -- 97.77,000 this is slightly better than last 2 years. Basically this [indiscernible] year-by-year because maintenance timing is slightly different from year-by-year, so that how basically I will target over the availabilities in 94%, so the station is filled with it. And the next one is Health, Safety, and Environment, we call it HSE. The company has no -- has had no [indiscernible] during this first half for 2025 and we had achieved 3,410 days without any [indiscernible], and also company has no -- have no experimental decision during this period. And next one is Operational Highlights, [indiscernible] how budget [indiscernible] how was growth in the our AGM. Among to us [indiscernible] basically this activities occasionally say -- get from going and smoothly a progressing and our CSR's forecast area is education and to support disable people. And next represent as a Financial Highlights. At this experiences from our CFO, Mr. Falah. Please explain that. Mr. Falah.

Not a problem. Thank you, Kikuta, sir. Good morning, everybody. My name is Falah -- my name is Falah. I'm the CFO of Muscat City Desalination Company. I will run through for you our performance for the first half of 2025 against first half of 2024 last year. So in front of you, you'll see a couple of bar charts. The green one that is in relation to this year first half and the yellow one relates to last year -- and first half. On their first column, we have our revenue for the first half of 2025 against the first half of 2024. There's a slight decrease by around 2%. We made OMR 8.75 million for 2025 against OMR 8.96 million in 2024. The main reason for this is, like Kikuta sir mentioned is slightly lower dispatch and also there's a slightly higher forced outage compared to 2024, but those are not alarming itself. And then follow through with that, we have our gross profit. So the revenue impacted our gross profit slightly. We registered OMR 3.15 million in 2025 against OMR 3.18 million in 2024. All in General and Administration expenses, there's a slight increase by about OMR 10,000, but this is mainly because of inflation increment of the G&A. There's nothing particularly one-off in the general expenses. Finance cost is lower compared to last year given that we paid some of the borrowings. So we locked in OMR 1.2 million to OMR 2 million in terms of finance cost for this year compared to OMR 1.34 million last year. And because the reduction in terms of the finance cost, our profit before tax for this year is better than last year. We registered OMR 1.43 million against OMR 1.38 million profit before tax. Then subsequent to that, profit after tax is 4% better for this year as compared to last year, it's OMR 1.16 million for 2024 against OMR 1.20 million for first half of 2025. With regards to the share price, as at 30th of June 2025, our share price stands at [indiscernible]. So it's similar level as per the 30th of June 2024 of [indiscernible]. With regards to dividend during our Annual General Meeting on 23rd of March 2025, the shareholders resolved that the distribution of cash dividend will be May and November 2025. For those who are registered with the company at the dates determined by the Board and dividend in total should not exceed [indiscernible] share. And also -- so we paid the first dividend, which was paid in May that was approved by the Board on the 23rd of April that was paid at [indiscernible] per share. So that's on the financial performance for the first half of 2025 against first half of 2024. I would like to pass it back to Mr. Kikuta, sir, to going through over the outlook.

Thank you. Next one is Outlook. Basically, as I shown on the screen, Outlook on the 20s. Our business is secured based on the long-term contract is a WPA and Oman. Basically Muscat zones water demand is a still good decision, keep looking that thing. And our insurance phase other zone on the screen at extraordinary the natural phenomenal like a jellyfish at April and disrupting something so roughly speaking our authorities that are natural and have something, but other than that, basically our expectation is fairly similar future same as well as before. Basically they are good to demanding this Muscat zone area. That's all from our side. Is there any question from the attendees, please give us. Is there any answer or some question or something? Okay, it looks there are no questions from the attendees. So we're going to close the session of this meeting. Thank you for your attendance. Thank you.

Thank you, everyone, for your attendance. Thank you. See you next time.

See you.