MUSCAT: In a strategic move, OQ Exploration & Production SAOG (OQEP) — the majority state-owned upstream energy subsidiary of OQ Group — has announced plans to repurchase between 45 and 60 million of its shares listed on the Muscat Stock Exchange (MSX), underscoring its strong financial position and confidence in its long-term market value.
The announcement was made in a filing to the MSX on Thursday, July 24, 2025. It noted that the proposed buyback would span a six-month period from August 9, 2025, to February 9, 2026, or until the targeted number of shares has been acquired. As for pricing, the repurchases will be guided by prevailing market price trends, the filing added.
“This share buyback represents a strategic initiative aimed at reinforcing positive market momentum and strengthening shareholder confidence in the Company’s stock, as well as its financial and operational performance,” said Jaber bin Rashid Al Naamani, Chief Financial Officer of OQEP.
“The buyback is expected to have a favorable impact on the share price and market perception, offering enhanced flexibility in capital management and optimizing shareholder returns. This initiative serves as a strategic enabler, empowering the Company to act decisively in bolstering market confidence and delivering long-term value to its shareholders,” he added.
According to market experts, while the share repurchase programme represents a modest 0.6–0.8 per cent of the company’s total outstanding shares, it is expected to support key performance metrics such as Earnings Per Share (EPS), Return on Equity (ROE), and other valuation ratios. It is also viewed as a sign that the management of dividend-heavy OQEP believes the current trading price (around RO 0.35 per share) is attractive compared to its internal valuation.
The announcement comes on the heels of OQEP’s strong earnings report for the first quarter of 2025. The company reported revenues of RO 205.5 million, slightly down from RO 209.5 million in the same period last year. Gross profit for the quarter stood at RO 75.5 million, compared to RO 78.8 million in Q1 2024. Despite the slight dip in revenue and gross profit, EBITDA remained strong at RO 152.7 million, marginally higher than the RO 151.1 million reported a year earlier. Net profit for Q1 2025 totaled RO 74.9 million, compared to RO 82.2 million in Q1 2024.
Excluding the contribution from the discontinued operation, Abraj Energy Services SAOG, net profit for the period remained steady at RO 74.9 million, despite a rise in financing costs stemming from the refinancing of a subordinated loan with two new facilities totaling USD 1 billion. Return on Capital Employed (ROCE) improved to 22 per cent, while capital expenditure was reduced to RO 57.4 million compared to Q1 2024. Adjusted cash flow from operations, excluding working capital, stood at RO 141.8 million.
OQEP has reaffirmed its commitment to returning value to shareholders, with planned dividend payouts totaling RO 230.7 million (USD 600 million) over 2025 and 2026, comprising both base and performance-linked dividends.
Billed as Oman’s largest pure-play oil and gas exploration and production company, OQEP manages a high-quality portfolio of 15 upstream oil and gas assets across the Sultanate. These range from assets in development and production phases to others undergoing appraisal or active exploration. Of these, nine assets are currently producing. OQEP either operates these assets directly or participates as a joint venture partner or non-operator. As of the end of Q1 2025, oil and gas production averaged 221,200 barrels of oil equivalent per day (boepd).
Oman Observer is now on the WhatsApp channel. Click here
