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

Good morning, everybody. Welcome to MSX Discussion Session Q2, 2026. We will introduce by [indiscernible] is our CEO and myself is the accounting manager and Salim Al Dhahli is HR manager. We are going to present the operating results for the period ended 30th June. We have Muscat Gases listed parent's company. Our quarter's revenue OMR 10.879 million and cost of sales is OMR 9.020 million and gross profit is OMR 1.545 million. While gross profit percentage is 14.21%. Other revenue which is OMR 49,912. Operating cost OMR 990,693. Operating profit OMR 569,703. Administrative costs OMR 493,932. Profit before tax is OMR 75,772. The tax which is OMR 11,366. Profit after tax OMR 64,406. When it comes to our subsidiaries Al Aman Gas, they have revenue OMR 243,258. Cost of sale which is OMR 242,255. Gross profit which is OMR 993. Gross profit margin 0.41%. Operating profit remains same. Then administrative cost OMR 658. Profit before tax which is OMR 335. Tax OMR 50. Profit after tax OMR 285. There is another subsidiary company, which is Muscat Power Pioneer, the revenue increased OMR 406,652 and cost of sales which is OMR 331,559. Gross profit which is OMR 75,093. Gross profit margin which is 18.47%. Other income which is OMR 9.9. Operating cost, which is OMR 153,050. Operating loss which is OMR 77,948. Administrative cost OMR 26,088. Loss before tax, which is OMR 112,036. Loss after tax, which is OMR 104,026. When it comes to the other subsidiary, it is Muscat Power Solutions, Saudi Arabia, the revenue is OMR 522,365. Cost of sales which is OMR 344,295. Gross profit OMR 178,070. When it comes to gross profit margin, 34%. Other income which is OMR 73 and operating cost which is OMR 108,088. Operating profit which is OMR 70,055. Administrative cost which is OMR 135,035. Loss before tax it is OMR 64,980. Loss after tax it is OMR 64,980. When it comes to the other subsidiary, it is United Marketing Solutions, the revenue is OMR 40,973. Cost of sales which is OMR 76,615. Gross profit OMR 14,358. The gross profit margin, which is 35%. Operating cost which is OMR 12,857. Operating profit OMR 1,501. Administrative cost which is OMR 7,247. Loss before tax is OMR 5,746. Loss after tax it is OMR 5,746. When it comes to the consolidated figures, total revenue, which is OMR 12.092 million. Cost of sales OMR 10.278 million. Gross profit OMR 1.813 million. The gross profit margin which is 15% less and other revenue OMR 14,995. Operating cost OMR 1.264 million. Operating profit OMR 554,304. Administrative cost which is OMR 652,960. Loss before tax which is OMR 98,656. Income tax, which is OMR 11,416. Loss after tax, OMR 110,072. Anybody having any questions, please. Our CEO will explain about our business plan and what is the current situation in broad.

Thank you. Thank you, ladies and gentlemen, for attending this session. This is, in fact, my first session as CEO for Muscat Gas. I'll give you a brief history on the last 6 months. In March 2026 -- March, April 26, there was a change of control and Blue Gas, is Al Wahaj Al Azrak for manufacturing acquired a controlling shareholding in Muscat Gas. It was a stake purchase on Takamul Investment Company. Accordingly, in April, there was a change in management in April 2026. The FSA regulation, there was also a mandatory tender offer made by Blue Gas to the other shareholder and that was completed mainly in July, August 2026. Currently, the Muscat Gas has a new management and a new Board. Accordingly, we are currently doing a comprehensive strategic review is under the way across all the portfolio and operating models of the company and also introducing new revenue streams. By November 2026, we will introduce a new strategy for Muscat Gas. That will preserve its core business, the LPG business and add to it new revenue streams coming accordingly. There will be an organizational structure and we're going to have a review on the governance and the controls and the commercial capabilities. We are currently also -- we hired a new CFO coming on board very soon. This restructuring also will start as we get the [indiscernible] in November 2026. There will be new revenue streams. We are already working on them and they will be announced accordingly once we arrive at the signature stage there will be projects and these projects will be announced to the market in due time. We hope that by the end of this year, we will have a positive result for the group according to our projections. Currently, we are working in 2 levels. One is improving the cash flow of the company by looking at the operating working capital and minimizing the exposure to the market when it comes to receivables and managing properly our tenders and [indiscernible]. At the same time, we're looking at improving our pricing and our pricing condition and sales condition across the market in order also to address the revenue issues. That's in a nutshell what we are doing currently in Muscat Gas. I hope I will get you more details in the next round. There will be more details as long -- as much as we can disclose in this -- thank you. Thank you so much. And if you have any questions, please let us know.

Yes. So basically, we have received a question. The question is that the parent's Muscat Gas company business remained profitable yet the group reported a consolidated net loss. Explain whether these issues are temporary or structural or outline the expected time line for returning the group to consolidated [ profit ]?

Thank you for the question, [ Amira ]. I think with the operating -- the 2 operating entities, MPP and MPS, mainly the main work is in projects, and they had a major delay due to disruption in the supply chain. That major delay in the disruption in the supply chain ended up with less generation to the client. We do expect that we will have a correction and will be recovered by Q3 and Q4. We're working very hard on the issue of the supply chain since it's a general issue. It's not something specific to Muscat Gas. We have to digest some logistics and shipping costs into our projects and those who are working in that sense. Hopefully, by the end of the year, we will have a correction.

If anyone has a question, please let us know. Otherwise we're going to end this meeting in 1 minute -- 5 minutes.

Thank you again for attending this meeting. Hopefully, we'll meet in the next period. Thank you so much for your attention, and we'll see you next time.