New power agreements to strengthen sector outlook

MUSCAT: Energy companies listed on the Muscat Stock Exchange are set to sign new long-term power purchase agreements with Nama Power and Water Procurement Company, a move expected to enhance operational sustainability, strengthen financial stability and ensure steady revenue streams for the sector.
Al Suwadi Power, Al Batinah Power and Al Anqa Power confirmed in separate disclosures that they have accepted letters of assignment issued earlier this month and are currently working with Nama to complete procedures for signing the agreements. The new contracts will run for 15 years, extending supply commitments well into the 2040s.
Under the proposed arrangements, agreements with Al Suwadi Power and Al Batinah Power will come into effect on April 1, 2028, following the expiry of existing contracts, and will remain valid until March 31, 2043. Meanwhile, the agreement with Al Anqa Power is scheduled to commence on April 1, 2029, and continue until March 31, 2044.
The agreements are part of broader efforts to enhance the reliability of the electricity sector, particularly during peak demand periods, while addressing rising consumption driven by economic growth, expanding industrial activity and population increases. They also align with the country’s push to expand renewable energy capacity, including solar and wind projects, as part of initiatives to reduce carbon emissions.
Electricity production in Oman has shown consistent growth, rising by around 5 per cent to exceed 51,000 gigawatt-hours (GWh) in 2025, compared to approximately 49,000 GWh in 2024 and 43,900 GWh in 2023. This upward trend reflects increasing demand across residential, commercial and industrial segments.
The sector has also benefited from a series of recently signed agreements between Nama and major producers, including Sohar Power Company, Barka Water and Power Company and Sembcorp Salalah Power and Water Company. These agreements have contributed to improved operational stability and enhanced financial performance.
Sohar Power, which signed a nine-year agreement in December 2024, reported the restart of its open-cycle gas turbines and expects to complete repayment of primary debt this year, paving the way for shareholder returns in the future. Sembcorp Salalah indicated that its new agreement will support long-term value creation and business stability, while Barka Water and Power confirmed timely debt servicing of RO 6.8 million in 2025 and successful completion of performance tests under its current contract.
There are currently 12 energy companies listed on the Muscat Stock Exchange operating in electricity and water production. Preliminary data shows that these firms recorded combined net profits of RO 107.6 million in 2025, compared to RO 111.6 million in 2024. Phoenix Power led the sector with profits of RO 26 million, followed by Sembcorp Salalah at RO 23.3 million and Sohar Power at RO 16.7 million.
Market capitalisation of energy companies rose to RO 809.3 million by the end of 2025, up from RO 461.3 million in 2014, reflecting strong investor demand, improved performance and positive expectations for the sector’s long-term prospects. — ONA