Oman Oil Marketing Company SAOG (OOMS) Earnings Call Transcript & Summary

[Foreign Language] Good morning to all of you, and we are welcoming you to the Investor Relations engagement sessions for the Oman Oil Marketing Company for the first half of 2026. We are going to present the performance of the company for the first 6 months of 2026. My name is Jaber Wahaibi. I'm acting Chief Growth Officer. With me today is Issa Saadi, as acting Chief Financial Officer; Rahma Al Busaidy, acting Chief Assurance. As usual, we'd like to explain our operation -- explain our relation -- sorry, our operation in Oman Oil and internationally. We have retail fuel, which is B2C and Oman oil in Sultanate of Oman as well as in KSA. There is a quite excellent growth in the first 6 months of the year due to the growth of the country and whatever is going around the geopolitical issues. With regard to the commercial fuel, it's basically delivering the fuel to the commercial customer, which is B2B. We do have aviation fuel and mainly, we are Oman Air and SalamAir and other airlines. Lubricants, we are -- we're having our Oman oil lubricants as well as locally and internationally. Definitely, we do have BP Castrol. We are the local agent of the BP Castrol in Oman. We have nonfuel businesses, which is basically Ahlain store and Amazon Cafe with other businesses like car wash and car care centers. Storage and distributions, mainly when we are talking about the storage and distribution, we are talking about the storage and distribution of the bunker fuel. We have the only company which have -- a fuel marketing company in Oman, which have bunker fuel in the Sultanate which is located in Duqm. And due to the -- whatever issues is happening around the country, the terminal worked very well in the first 6 months and have a significant growth in terms of the top line as well as the bottom line. Bunker fuel and marine fuel, this is all related to the fuel, which we are doing mainly ship-to-ship fuel and we have very small other businesses related to the marine fuel. Alternative energy, we are focusing a lot on alternative energy, which is including the solar system, the VRS and the electrical vehicle charge. Digital, we have our mobile application, which is one of the excellent applications in the country based on our understanding and based on the numbers we are seeing. We are to have what you call a relationship with Mubashir. Mubashir one of the companies which is working with the digital advertisement. We have many screens in our stations. Next, our structure as a group, we are owned -- we are a public listed company, as all of you know that, 49% of our Oman Oil Marketing Company is owned by OQ. The structure of Oman Oil Marketing Company and its subsidiaries is including Trafigura OOMCO, which is one of the successful JV we have to conduct the bunker business in Oman. Trafigura is one of the biggest international player on the bunkering. We do have a JV with them 49-51. We have another successful story with EVO. EVO is our company, our JV with Synergy is another Omani company. We have more than 134 points charging points of electrical vehicle which is located in more than 64 locations. Basically, all our investment in electrical vehicle is going through EVO. I think all of you have listened to the latest news of announcing the tariff, which will enhance our services, and that will turn out the company to a positive very soon [Foreign Language]. Muscat Gas, has got an investment of Oman Oil Marketing Company with Muscat Gas, 9.18%, which has been sold out to an investor. We have -- with those JVs, we have subsidiaries, which own 100% by Oman Oil. The first one is OOMCO KSA, which is 100% owned by Oman Oil. It is a subsidiary working in Kingdom of Saudi Arabia. We have OOMCO Marine, which is basically the owner of the assets in Duqm bunker. We have Ahlain International as well. It's 100% owned by Oman Oil Marketing Company. Ahlain International today, they are operating more than 60 C-store and 18 Amazon Cafe. We are the local agent of Amazon Cafe in the country. Sultanate Energy Company is in Tanzania. It's 100% owned by Oman Oil. We have announced in the MSX that we signed the SPA to sell our shares on Sultanate Energy to reallocate our capital to more beneficial businesses and mainly we are talking about KSA. Next slide, this is our network. We have more than 293 operational service stations locally and internationally, more than 240 stations in Oman and 52 service station in KSA. This is as of June, the numbers has gone up and in the next investor meetings, we are going to present the new numbers. This is our operation locally and internationally. I will leave you with Issa Saadi, who will be talking about the financial, and then we will open for the questions.

[Foreign Language] Good morning, everyone. Thank you, Jaber. I will appreciate that the company [ overall ]. Moving to our financial performance for first half 2026. The group delivered strong growth comparing with the same period in 2025 as you see group revenue [Foreign Language] was increased by 16% to OMR 446 million. Accordingly, cost of goods sold increased with similar percentage. Our gross profit [Foreign Language] we are able to increase it to 14% to OMR 29 million. Also related to other income, show high growth increase by 25% from OMR 2.4 million to OMR 3 million comparing with the similar period last year. That's mainly drive on that rental income. On the other hand, operating expense, investment, financing and taxation broadly flat, as you see we are [ meaningful ] for contribution getting from our JV, as Jaber mentioned at the beginning. As a result, our net profit and [ handling ] very strong growth by 120% to OMR 7.3 comparing with OMR 3.3 million in similar period in 2025. That's all in financial, and we would like to have any question -- if you have any question related to our performance in first half 2026.

So if there's no questions, then I think one more minute, then we will call to close the meeting.

How do you see the aviation fuel volume in the second half of 2026?

Second half. Actually, as you know, we are in the market. I agree with you, we -- our companies show very significant growth in aviation sector. It's one main contribution in our revenue for first half. But as you know, we are in a market we cannot really dedicate exactly what will happen because they are subject to multifactor related to the market condition and let's say, the geopolitical issue in the region. The management, they keep watch and maintain the relationship with our stakeholders like Oman Air and SalamAir and other [ there ]. [Foreign Language] we will work very closely with those kind of company. Hopefully, [Foreign Language] that will be the same, but nothing sure because it depends on the market condition.

We have George, you raised your hand. Is there anything you want to ask?

Congratulations on the wonderful set of numbers that you got. I just have a couple of questions. On the Saudi market expansion, do you have any CapEx guideline? Or going forward, what is your commitment you have or any guideline for the number of stations to be open, anything like that?

See, with regard to the KSA market, KSA market has a big potential, and we are continuing our plan on growth on the KSA market. With regard to the CapEx, I'm not in a position to disclose the numbers. However, what I want to say is that, yes, Oman Oil is committed to the project. As you saw that we shut down Tanzania and relocate what you call our focus to KSA. With regard to the Saudi Arabia, yes, I confirm that the company is growing on that one -- on KSA. KSA is a little bit different from Oman. So not necessarily you grow with the CapEx, you can grow with -- by hiring an existing setup, not by hiring a greenfield and a new development. Different options in KSA is there. However, we are working and we are assessing all what you call the potential investments in KSA.

Understood. I just have one more question. Like 1H '26 profit has doubled. So from an investor point of view, can we expect any higher percentage of dividends this year? Can you please elaborate on that?

See, with regard to the dividends, Oman Oil marketing is obliged to MSX, and we have our dividend policy, which is announced in the security market. For more details, you can refer to that to the -- what we call to the policy. However, I will give maybe something to elaborate with the policy and the high level.

Yes. Actually, as you know, the company was announced the policy in MSX, dividend policy that any future dividend decision will remain subject to Board recommendation and shareholder approval considering -- taking into considering profitability, cash generation and growth strategy and overall financial position.

And can you throw some color on how the third quarter is shaping up? Can we expect an aviation-led growth, probably you mentioned in your presentation that bunkering was also contributing major portion of revenue. So going forward in the third quarter and 2H '26, can you just elaborate on how that is shaping up?

Well, the business and the geopolitical issues is still going around. With regard to the performance of the bunker is still continuing, but not maybe as strong as the first quarter. However, what we are promising or what we are seeing now there is a growth in the bunker business with regard to the aviation, aviation is still is doing great for us. We hope that this will continue [Foreign Language] with us until the year-end.

Also, I can add one more point related to that. Actually, as I mentioned in financial performance, our revenue was [Foreign Language] increased by 16%. Main driven in that, I can disclose that retail and aviation. As I said, the management [Foreign Language], they will keep maintain and make sure hopefully [Foreign Language] this performance will continue for the second half depending on the market condition and other aspect.

We also have Shariff, raised your hand. Shariff, you can ask your question.

[Foreign Language] I just have around maybe 2 questions. The first question is what's -- we look at the revenue and our profit, what's the split around that segment? And also, if you share with us what's the outlook for that segment? Have you give us a percentage from the segment that you have mentioned, which has contributed to the net profit?