National Gas Company SAOG ($NGCI)

[Foreign Language] We will do this presentation in English that everybody can understood. And if there is some question in Arabic, we will take and will answer afterwards. This is a shareholder discussion for the closing of financial data of '25. I can have the next slide, it will be nice. We will have a small introduction the highlight of the year and we will go through the financial performance. And afterwards, we will get to the question and answer if you have any at the end of this presentation. Our vision stay the same as we have discussed last quarter. We are still having the strategy of being the best-in-class in safety, which is our main concern in Oman and outside Oman also and to develop mainly the GCC region, even the challenging situation and in Asia. We are focusing in this continent, and we will continue focusing on these two in the next 2 years also. And we are trying mainly to sustain and to make human a little bit more profitable and outside Oman or more resilient also to the different event we can have in these LPG markets. From market condition, mainly in Oman, I think still challenging. Nothing has changed drastically. No breakthrough, we can say, and we are repeating this since roughly now 7 years. And I think we are still waiting chasing MOCI to give us more clarification of the rules regarding mainly branding, how it will work, who do what et cetera, exchange mechanisms and so on. And mainly we raised the Board and to the ministry that this branding change has a cost, has an impact on our P&L and it must be compensated by something. We give different proposals by letter, by presentation. But as you know, now we have a new team. We have a new Ministry of Commerce, a new and the secretary I think we are restarting the process with the new team. And we hope that in the coming months, we can have some practical answer and not only words. Margin dropped, it's the same, as you know. And we have still too many players for small market. And even we have seen in the last 6 months, some license given to small players building storage capacity, which makes no sense for us because most of the players and the two big mainly, we are under capacity of feed in the market because our assets are running at 50%. Slowdown of engineering project because I think a lot of projects in Oman are mainly real estate and we are trying to push the regulation to put LPG in the new building, in the new cities, like Haitham City, et cetera, but still, it's a regulatory challenge. Despite of all above, I think, challenging, our operating profit has been able to be positive back to normal, back to positive, thanks to leverage. We have done a drastic cost optimization, but mainly also you will see by the numbers, volume growth. I think this volume growth, it's exceptional. It's not easy to do, but we have done it even with this circumstance. To illustrate this one, I can share with you these highlights for the sales purpose. The LPG volume has grown by 54% versus last year which has increased by 54%, means we have really developed this capacity. And I think we can say, roughly, we have 80% market share in the bulk volume today. Refill volume, refill means filling of cylinder and supplying to household and to restaurant has grown up also 8% means we have done 5% market share acquisition, which is the growth usually, it's 1.2%, 1.5% in Oman. We are at 8%. Means we have I think with the opening of the hubs with the strategy of having satellite hub, it increased our volume. For the other part lubricant, if you remember, we started this business line roughly 5 years ago, we were 0. Now we have achieved consistent and I think top line, OMR 1.8 million. It's the first time and the volume has grown by 75%. I think we are more concentrated in industry, not in retail. It's not our core business and retail, it's really challenging, but we are focusing on expertise, and we have a strong support with HPCL from India. We have set up a strong collaboration today. We have experts 3 months, helping us to unlock some door who are local deeply. Revenue has grown by 30% versus last year. Globally, business-wise, activity was very dynamic, very fluctful, 79 new customers, plus 70 contracts signed. I think we are trying all the time. We can secure and contract 3 to 5 years to be able to have a resilient approach and the long-term approach from efficiency front which helps the P&L, we have recorded LPG volume delivered with reduced manpower to, I think, our productivity today, it's very high and over the standard in the LPG market around the world. For logistic part, we achieved a number, which is a small number, but to do it, I think it's without accident, without any failure, 3 million kilometers, which is plus 29%, as if you remember, we have done plus 54% of the volume. This is a [indiscernible]. Transport cost has been reduced by 5% because we have optimized our cost, our maintenance, and we are doing everything internally because it's more affordable for us than subcontracting. Last part, which is the finest chapter. I think the growth project, we have -- as we have announced in the market, the acquisition of Samahram Gas to be present in Dhofar, which was not the case into -- in middle of the year, last year June. It bring a dividend to the company roughly OMR 50,000, and we have calculated, which is roughly 18% ROI. Working capital cycle has been improved also even we grew by 38% and the finance cost has slightly increased due to this acquisition for the new borrowing and the reimbursement of our acquisition to Samahram Gas shareholders. To summarize these things, I think for the parent company, as we see in 2022 before we take over the new management, we was roughly at OMR 0.5 million loss, I'm speaking at the operating profit level. In '23 first reorganization, we improved it a little bit at OMR 180,000. '24 it was at breakeven. And now I think we have demonstrated that we can generate operating profit that the company is more in the green part not totally out because we are still very sensitive. The number is not so high, sensitive to what sensitive to the regulator. Today, we can say we are operating profit in Oman as a parent company plus OMR 118,000 million. Outside Oman, we can disclose at this stage that Saudi LPG license is still ongoing. We are waiting like the over 8 players the feedback official from the Saudi Minister of Energy. Really, we are chasing them. We are waiting. But still, we hope that in '26, we will get a final call from their parts. Our actual business in Saudi, which as you know, it's mainly engineering it's underperforming against '24 because a lot of project has been delayed, slowed down in Saudi. Even perhaps you have heard about the big projects, NEOM and so on. All products are downsides or underperforming plus a newcomer from Egypt mainly at a lower cost to target this business also, which is a low barrier penetration. For Malaysia parts, LPG business has maintained its performance I think we are doing good, but our new business line, we have started over there, project business and underperformed mainly due to a big project, which we got some overrun resulting from -- due to a weather condition but we hope that '26 will be probably much better result wise because these one-offs will not be there in '26. For the financial results, I will let Mr. Mukesh quickly go through without going in all numbers details, but to give you the spot line and the main point for the parent and for the group.

Good afternoon. We just like to present these numbers for the year 2025, where for the parent company, our revenue is 11.8% versus 9.1% last year. So it is around 29% jump. But at the group level, it is flat, mainly because CP price, which was lower as compared to 2024, which is applicable for Malaysia. Otherwise, in terms of volume, there was a growth. Cost of revenue is maintained in proportion to the sales and gross profit has improved 14% in parent company and minus in group because of mainly project, we have Malaysia project, which have incurred some losses or cost overrun. So this has impacted in current year...

Mr. Peter, can you mute please? We will continue with the financial results.

Operating profit we are OMR 118,000 as explained earlier versus minus OMR 36,000 at parent level. So there was almost 4x jump improvement. For a group level, we are lower than last year because of the project revenue in Saudi, we have a little lower performance. Finance cost is maintained for both parent and group level. We have provisioned for the Saudi for UAE and Khazzan project which has impacted the bottom line. We have received a dividend from our subsidiary company, which is Malaysia and Samahram Gas totaled OMR 298,000 versus OMR 222,000 last year. So overall, our profit before tax is minus OMR 294,000 for parent versus positive OMR 144,000. And for a group level, we are minus OMR 452,000 versus OMR 439,000.

I think quickly in the other way, as Mr. Mukesh said, the revenue has really increased at the parent and flat gross profit, we are at 48% reduced at the group 22%. And admin, I think it's under control from both sides, parent and the group level. And the operating profit, as we say, has been positive in the parent and negative at the group level, mainly due to Saudi projects and Malaysian products. Over income has been decreased for parent by OMR 126,000 because due to a reversal of ECL provision, mainly Finance cost, we maintained a slightly increase due to Samahram acquisition and provision of ECL at for parent additional provision for impairment to finalize all the impairment we was having. If you remember, 3 years ago, we have closed the operation in UAE. It is the remaining main in ECL has been taken this year to clean the whole aspects. At profit loss for the year, the parent, we are at a loss of OMR 200,000 and at group level, roughly OMR 750,000 due to what we just declared in the previous slide. To highlight some quick some projects we have completed in '25. We have finalized COMSAT, which is a global integrated engineering. We have set up the whole system tank piping and the whole generator also. For Carmeuse Paper is the biggest consumer in Oman of LPG, roughly 1,000 tonnes per month. It's mainly producing recycled paper who were exported outside Oman. We have set up a full system of natural gas, PRS also to have a backup system in case of we have some shutdown and some shortage in LPG sometimes due to hardly finding. I think we have done a tour of the main highlights, main numbers and so we can open the Q&A question for you. Please, the floor is yours.

Any questions from your side? Unmute the people. All people are unmute? Do you have any questions for us? And can you see the chat, please? There is a chat. What is in the chat here. Mr. David a question? Mr. Ahmad, question? Ms. Fatima, question? Mr. Peter, do you have a question for me? I don't know if they heard us, I don't know. Can you unmute, please? You muted them? Because they are in mute.

Dividend payout in 2020, the expectations for dividend in coming years? Is there any dividend in the coming years?

[Foreign Language].

It depends for the performance, if there will be performance, there will be a dividend based on the [indiscernible]. Going forward [Foreign Language] as we could see the operating profit is in the right direction. So we turn around the company.

What we can say regarding the question, the question we have in the chat is can I see that the last dividend the payout was in 2020, what are expectation for dividend in the coming years. We are believing that coming years as we have finished the transformation of our company after these 3 years that starting this new period of '26, '27, '28. The next 3 years will be more profitable, and it's dependent on the capacity of generate net profit also. We hope that we can be in a more positive way. Can you unmute them because they are muted. Unmute them, unmute everybody. You can unmute everybody. Because you mute them, then they cannot unmute. Any other questions? If we don't have any more questions from your side, we will consider that this meeting is closed, and thank you for your attending. And nevertheless, if any question is coming, we can also tell you about the AGM is planned on 25, correct, Noor? On 25th of March at 7:00 p.m. online. You are welcome also as a shareholder to attend through the process who has been published in the MSX yesterday by Ms. Noor following the official protocol and process. Thank you very much, and see you in the next quarter in April for the next meeting [Foreign Language].