OQEP holds roadshow in OCCI Suhar

MUSCAT: The second OQEP IPO roadshow took place at the Suhar Branch of the Oman Chamber of Commerce and Industry (OCCI). The company is transitioning from a closed joint-stock company to a public joint-stock company. This initiative aims to raise awareness about the importance of the initial public offering (IPO), which plays a crucial role in channeling the savings of citizens, residents, and investors into the IPO.

Eng Ahmed bin Said al Azkawi, CEO of OQEP, delivered a presentation on the offering process, announcing that 25% of the company's shares are allocated for the IPO, with 40% reserved for individuals. The shares are priced at 351 baisas each for Omani individuals and 390 baisas for non-Omanis, aiming to encourage investment and promote the use of savings in profitable ventures. Al Azkawi emphasized that this offering represents the largest of its kind in the Sultanate of Oman and is a groundbreaking initiative in the production and exploration sector.

Al Azkawi highlighted the company’s strong operational and financial performance, showcasing a Compound Annual Growth Rate (CAGR) in revenues of 14% since 2010, along with a 19% CAGR in earnings before interest, taxes, depreciation, and amortization (EBITDA).

He emphasized that the company’s sharp focus on maintaining a high-quality, low-cost operating asset base has allowed it to achieve operating costs of $9.4 per barrel of oil equivalent (boe) in 2023, compared to an average of $13.8/boe among peers selected by Wood Mackenzie II.

This low operating cost base, combined with a stable and attractive fiscal regime, supported an Adjusted Free Cash Flow generation of US$16.0 per barrel of oil equivalent (boe) in 2023, which is significantly higher than the average of $5.9/boe among its selected peer group in the same year.

Eng Said bin Ali al Abri, Board Member of the OCCI and Head of the Chamber's North Al Batinah Branch, highlighted the importance of IPOs in stimulating the national economy and broadening the ownership base of government assets. He emphasized that these initiatives are part of economic policies aimed at attracting global investments and improving corporate governance practices. Al Abri also noted that this offering will enrich the Muscat Stock Exchange with high-capital companies, thereby attracting both domestic and foreign investments.

Al Abri pointed out that OQEP is one of the leading companies in oil and gas exploration and production, owned by OQ Group and the Oman Investment Authority. As the only wholly government-owned operator in this sector, the offering of 25% of its shares represents a promising opportunity for investors, given its capabilities and profit generation potential outlined in the issuance prospectus.