MUSCAT: Oman International Development and Investment Company SAOG (OMINVEST) held its Annual General Meeting on March 29, 2017. In the meeting, the Shareholders approved the Company’s financials for the year ended on December 31, 2016. The Shareholders also approved a Total Dividend of 25 per cent, comprising a Cash Dividend of 15 per cent and a Stock Dividend of 10 per cent for the financial year 2016.
OMINVEST Group revenues rose by 59 per cent to RO 227m and Group net profit grew by 1 per cent to RO 37.6m over the same period in 2015. OMINVEST’s share of the Group net profit stood at RO 23.9m compared to RO 22.9m, a growth of 4 per cent, over the same period in 2015. The growth in net profit was attributable mainly to the strong growth in the new subsidiary Oman National Investment Corporation (ONIC) which recorded total investment income of RO 7.1m for the year ended December 31, 2016.
Profits from OMINVEST’S associate companies rose to RO 8m compared to RO 3.8m, a growth of 110 per cent, mainly driven by the merger with ONIC Holding on August 19, 2015 which increased the total number of associates from 3 to 11. OMINVEST’S investments in associate companies have helped enhance and diversify the income sources — ensuring steady profitability in future years. Despite an exceptionally difficult environment for local and regional businesses, OMINVEST’s performance in 2016 stayed relatively resilient and the Company delivered healthy performance for the year.
OMINVEST tightly controlled its operating expenses, which stayed flat compared to last year. The Cost to Income Ratio stood at around 12 per cent, among the lowest versus peers in the region. During the current downturn, OMINVEST opportunistically increased leverage at competitive rates to be able to buy high quality businesses at attractive valuations, putting in place a recurring stream of yearly dividends and potential for capital gains, over the long term. As a result of its opportunistic investments, its Debt / Equity ratio modestly increased to 58 per cent.
OMINVEST, along with its Strategic Partners, Oman Investment Fund (OIF) and Arab Bank (Switzerland) Ltd, has established Ubhar Capital (“U Capital”), which envisions to become Oman’s leading independent investment banking platform. U Capital has acquired Oman Arab Bank’s investment banking business “OABINVEST”, which has a long-standing track record in corporate finance, asset management, brokerage and a leading market share in Oman.
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