Muscat Gases Company SAOG (MGMC) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to the MSX meeting. It's now 11 and 1 minute. So we'll start immediately. Unfortunately, due to technical issue, the camera is not working. So we don't want to have any delay. So we'll start without the video camera. Mr. Sathar, please can you lead us through the presentation? So Mr. Sami, the CFO, will start the presentation and the explanation.

Okay. So welcome to MSX Session #2 2025 for Mascot Gas Company. We will start first with the executive summary for the company. So Mascot Gas until the first half of the year has incurred OMR 94,000 loss for the first half of 2025. This was mainly due to the increase in admin expenses and drop in its export profitability due to stock that was at a higher price than the selling price as international prices during Q2 had dropped. While MPP only generated OMR 400 in profit in Q2 2025, similarly, MPS generated a profit of OMR 8,000 for first half of 2025. Moreover, [ UMS ] incurred a loss of OMR 9,000, which led the group to a total loss of OMR 94,000 in the first half of 2025. Also, the company decreased its export stock from 12,800 metric tonne from the beginning of the year to 0 metric tonne by -- as of today. Also, as you know, there was a qualification on the income statement regarding the export inventory. And as the export inventory has been cleared, we have asked our external auditor to conduct an interim financial -- an interim study on our financials to issue a nonqualified opinion by mid of 2025 for the period until end of June 2025. The report should be issued within 2 to 3 weeks and shorter. Going forward for the rest of 2025, MGC will need to find other sources for LPG export supply as the production is currently at 3,500 tonne monthly, while customer demand has reached around 6,000 tonne. Moreover, mostly was purchased by [ Jindal ], where the team will start discussion for payment of the company outstanding to reverse the provision of this project, improve the cash flow and resupply the client. Finally, the sale of new product was not during the first half of 2025 and is expected to generate good profitability for the company going forward if sales are completed. So this is the executive summary for what has happened until end of Q2 2025. As for the result of the company, Mascot Gas has achieved the highest revenue since its inception in the first half of 2025 at OMR 12.4 million. The gross profit, OMR 1.5 million, 13%. The operating profit OMR 471,000, 4%; and net loss before tax, minus OMR 94,000, minus 1%. Al Aman has generated OMR 413,000 in revenue and OMR 1,430 net profit after tax. MPP total revenue OMR 310,000 and net profit after tax, OMR 413 million. MPS, our company in Saudi Arabia, OMR 528,000 as revenue and OMR 7,400 net profit. UMS, OMR 39,000 total revenue and net loss of OMR 9,862. For the consolidated, the consolidated revenue, OMR 13,700 -- OMR 13,700,000 and the net loss after tax, OMR 94,000. For this consolidated, it's adding up all the company without removing the intercompany transaction.

So in this one, I would like -- this is Imad, the CEO speaking. I would like to explain something very shortly. Regarding Muscat Power Solution in Saudi Arabia, it started raising well. It starts to having no losses. And Muscat Power Solution and Muscat Power Pioneer in Oman, their profit, it gets delayed due to the delay in the project, the operational projects that we have. Hopefully, quarter 3 and quarter 4 will be much better, especially we started already the sales of the non-gas items, and we're already having 2 or 3 mega projects regarding carbon capturing and flare recovery under the final stage of signing. This is where we have been investing during the last 2 years. This is where we are trying to push the company to generate more profit. So hopefully, by the end of the year, the results, it will be satisfying the shareholders, and it will show the new path of Muscat Gas, how it will go and where it will reach. For us, as the numbers and as a project, we are done explaining that. So if you have any questions, we are open to discuss. So if any of the attendees would like to ask us any question, so kindly let's start the Q&A now. Just to confirm that everyone is hearing what we said and what we presented, Anahita, are you hearing us quietly?

Yes, clearly.

So we'll have like another 5 minutes. If there is no question, we will consider this session is done. So kindly, if you have any questions, if you would like to know anything, if you want us to explain anything, we'll be more than happy to answer your questions. So I believe there is no question from anyone. So based on that, we will close this session. Thank you, everyone. Again, before closing, if anyone had any questions? So thank you all for attending. We already sent also a chat message to be sure that everyone -- if they have any questions, we are here to answer, but it looks like there's no questions. Madam Anahita, just for more accuracy, you received the chart on this meeting, right?

Yes, the chart is very clear.

Okay. So thank you so much.

Thank you everybody.

We conclude the meeting now. I appreciate it, everyone. Thank you. Have a good day.