OQEP posts 297.8 million rial profit, up 25.7% in nine months

The latest:

Net profit at OQ Exploration and Production reached 297.784 million rials for the first nine months of 2026, a 25.7% rise over the 236.869 million rials booked in the same period of 2025, the company reported through the Oman News Agency. Total shareholder return hit 40% over the period. Average output climbed to 228,600 barrels of oil equivalent per day.

Details:

• The headline number: Net profit for the first nine months of 2026 came in at 297.784 million Omani rials against 236.869 million rials a year earlier, according to the company report carried by the Oman News Agency. EBITDA rose 12.2% to 835.982 million rials, compared with 745.279 million rials in the same period of 2025.
• Revenue: Top-line revenue reached 1.019 billion rials for the nine months, up 12.3% from 907.814 million rials a year earlier, the report said. Adjusted cash flow from operating activities rose 13.4% to 495.2 million rials, which the company tied to stronger production volumes and realized oil prices.
• Cost per barrel: Total operating costs declined even as sales volumes increased, with the cost of producing a barrel falling 14% to below 9 dollars. The company attributed the drop to operational efficiency and cost management rather than to any single asset or contract revision.
• The dividends: The board, acting under authority delegated by shareholders, approved base dividends for the third quarter of 2026 worth 57.7 million rials, plus a second tranche of performance-linked dividends for the first half of 2026 worth 19.3 million rials. Both go to shareholders registered on 25 November 2026.
• Production profile: Average output reached 228,600 barrels of oil equivalent per day over the nine months, split 53% oil and condensate and 47% gas, exceeding both last year’s level and the approved budget. The company credited improved production and operational reliability across its assets.
• Gas volumes: Gas sales volumes rose 14.5% to 104.9 billion cubic feet, up from 91.6 billion cubic feet in the same period of 2025, according to the report. Gas now accounts for close to half of total production on a barrel-of-oil-equivalent basis.
• Capital spending: OQEP invested 200.867 million rials in capital expenditure over the nine months, of which 195 million rials went to oil and gas assets and 6 million rials to exploration work, aimed at sustaining production levels and advancing its growth strategy.
• Returns metric: Return on capital employed rose to 68.2% compared with the same period of 2025, which the company presented as evidence of improved returns and discipline in capital allocation. Total shareholder return stood at 40% across the nine months.
• The CEO’s framing: Chief Executive Mahmoud bin Abdullah al-Hashmi said safe and reliable operations, high production levels, lower per-barrel cost and supportive oil prices drove the results. He reaffirmed the target of 300,000 barrels of oil equivalent per day by 2030, alongside selected international investment opportunities.

Between the lines:

The profit jump outpaced revenue growth by more than double — 25.7% against 12.3% — which points to the cost side doing much of the work. The 14% drop in per-barrel cost alongside rising sales volumes is the mechanism the company itself identifies, and it is also what allows a 77 million rial payout while capital spending holds above 200 million rials.

What’s next

The 25 November registration date sets entitlement for both dividend tranches. The next markers are fourth-quarter and full-year 2026 results, and whether output holds above the budgeted level on the path to 300,000 barrels per day by 2030.