OQ, the global integrated energy group, OQ recorded consolidated revenue of $22.768 billion at the end of 2021, compared to $14.006 billion in 2020, an increase of 63 per cent, the group said in its 2021 Sustainability Report. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $3.699 billion, an increase of 154 per cent as compared to 2020. The net profit amounted to $1.818 billion.
The Sustainability Report attributed the robust improvement in earnings to a number of factors. The wholly government owned group exhibited strong operational performance across different business units, with markets showing significant recovery, it said.
In its Upstream, oil prices increased significantly compared to last year, as the average Oman Export Blend Crude Oil (OEB) prices increased from $46/bbl in 2020 to $64/bbl in 2021. The recovery of the market has also resulted in high prices and demands across the majority of the Downstream business’ products, with outstanding performance by its chemicals and trading businesses, it further noted.
Commenting on OQ’s 2021 performance, Mulham al Jarf – Chairman of the Board of Directors, said: “At the start of 2021, the challenges of the pandemic continued to test the business environment; however, and fortunately improved market demand played in favour of the industry as the world began to recover, and demand for energy returned. OQ consequently achieved strong financial and operational performance, focusing on quality services to its customers while maintaining high HSSE standards and realising robust financial performance during 2021 compared to 2020. The exceptional performance was primarily driven by the improved market environment, as well as consistent operational performance across the business.”
Talal Hamid al Awfi, Group CEO, added: “Financially, we had a very strong and consistent performance throughout the year and ended 2021 with a consolidated EBITDA of $3.7 billion, 82 per cent above the budget. Moreover, because we recognise the importance of In-country Value (ICV) in sustainable development, OQ spent over $931 million on goods and services at an increase of 30% compared to 2020, whereas our spend to SMEs increased by 54% from the previous year, reaching $165 million.”
OQ’s third sustainability report to date highlights the Group’s achievements in various fields, as well as its economic progress, in-country value (ICV), social investment, health, safety and environment, digital transformation, and human resources.
The report, issued as part of OQ’s efforts to achieve sustainability goals, was developed in accordance with the guidelines issued by the Global Reporting Initiative, which promotes integrity, transparency, and business governance standards.
Within its efforts to preserve the environment and natural resources, as well as promote business sustainability, OQ has adopted the decarbonization policy and given it the necessary priority. Work is currently underway on four major projects in green hydrogen. OQ has also implemented several initiatives to manage water consumption and produce 30 megawatts of renewable energy in 2021.