Oman Chromite H1 net profit jumps 52%

 
MUSCAT: Oman Chromite Company SAOG posted a 52.4 per cent rise in net profit for the first half of 2026, as a shift to bulk shipping helped the Muscat Stock Exchange-listed miner overcome a squeeze on maritime logistics and lift sales volumes by nearly a third.
Net profit after tax rose to RO 623,637 for the six months ended June 30, 2026, up from RO 409,172 a year earlier, according to the company’s unaudited results, presented in a Board of Directors’ report signed by Chairman Humaid bin Masoud al Maqbali.
Net operating profit climbed 66.2 per cent to RO 743,603, driven by a 49 per cent increase in revenues to RO 3.5 million. The company attributed the improvement to a 32.9 per cent rise in sales volumes, enabled by the use of bulk shipping to export large quantities of ore, together with an 8 per cent increase in average selling prices, which helped offset higher shipping costs while the cost of sales per tonne remained relatively stable.
Sales reached approximately 58,084 tonnes, up from 43,706 tonnes in the corresponding period of 2025 — nearly double the period’s production, as the company drew down export-ready inventory accumulated under its logistics contingency plan.
Although the Port of Sohar was not directly affected by regional tensions, the company said it faced indirect challenges from a sharp rise in maritime freight and cargo insurance costs — particularly for container shipments — alongside limited availability of container vessels. In response, it partially shifted to bulk shipping, rescheduled export operations and maintained production levels while building up ready inventory. These measures, supported by a gradual improvement in the availability of maritime transport during the second quarter, delivered a notable increase in sales volumes and revenues, the report said.
Production, meanwhile, edged down 1.2 per cent to about 29,314 tonnes from 29,684 tonnes a year earlier. The total comprised 25,930 tonnes from the company’s own sites and 3,384 tonnes from newly commenced operations under an operate-and-develop contract covering one of the mines of Minerals Development Oman (MDO) — a step the company said reflects its drive to diversify production sources and strengthen its role as a mining operator in the Sultanate of Oman.
On the expansion front, the company has obtained its first mining licence within Concession Area 11-A in northern Oman, following expanded exploration and applications to convert discovered resources into minable reserves. Mining operations there are expected to commence during the second half of 2026, with exploration continuing across the remainder of the area amid what the company described as encouraging preliminary indicators.