Sahara Hospitality Company SAOG (SAHS) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you for joining the 2025 Annual Financial Results Meeting of Sahara Hospitality. My name is Hicham Maalouf. I'm the General Manager of Sahara Hospitality. And I am joined today by our Finance Manager, Mr. Mahipal. Sahara Hospitality is one of the leading providers of remote site accommodation solutions in Oman. Over the -- for over 25 years, we have developed, owned and operated permanent accommodation facilities across some of the country's most remote and demanding locations. Our facilities are mainly designed to support workforce, working for the industry, support in a way to improve productivity, well-being and safety by delivering a complete living environment rather than simply accommodation. Today, our PAC portfolio accommodates approximately 3,800-plus residents. Each facility, it operates as a fully integrated community by providing accommodation, catering, housekeeping, laundry, recreation and all the other essential support services. We consistently maintain very high standards of quality, safety, hygiene and resident comfort for both, I mean, our residents and mainly our own staff. In 2025, our revenue grew by approximately 5% compared to 2024, demonstrating the resilience of our operating model and responsiveness to the evolving market conditions. Our net profit declined by 5.77%, mainly driven by increased depreciation charges and higher utility costs compared to the previous year. As you see, our total assets increased by 3.25%, resulting in an increase of 2.6% in our net assets per share. This year, similarly to the last 3 years, our Board of Directors are proposing a 25% cash dividend. Now as a provider for accommodation services, we rely heavily on mainly PDO activity and broadly the oil and gas market. In 2025, the market was mainly stable, and we've seen mobilization of a few contracts in several hubs. As a result, our utilization in 2025 showed a slight improvement compared to 2024. Now in 2026, we expect to achieve almost the same results because our utilization remains high. So the occupancy levels will be sustained with the possibility of a minor improvement. Maximizing our in-country value continues to be a core strategic priority for us. In 2025, 99% of our materials are locally procured. 100% of our services are locally procured as well and 34% of all the materials procured are made in Oman. So we continue to prioritize the local content by supporting, of course, employment of Omani talents and developing them and promoting from within. Our main thing continue to be to focus on our HSE performance. Fahud, Nimr and Rima have now achieved 25, 20 and 14 years of LTI-free operations, respectively. So it's mainly a reflection of the disciplined safety practices and strong site leadership. Our continued progress in safety is driven by our people. Their professionalism, commitment, operational excellence remains central to Sahara Hospitality success. Now thank you. And now we welcome any questions you might have. So in the absence of any clarification or a question, we will have to conclude, and we'll see you in 6 months to discuss the first half results. Thank you for your time. Thank you.