MUSCAT, APRIL 21
Energy Development Oman (EDO), the Sultanate of Oman’s state-owned energy investment arm, reported a net profit of $523.017 million for 2025, marking a decline from the $712.215 million profit recorded in 2024.
According to its consolidated financial statement, EDO posted revenue of $14.77 billion in 2025, down from $16.07 billion in 2024. Total revenues and other income similarly fell to $14.80 billion, compared with $16.11 billion a year earlier.
The company’s cost profile remained significant, with royalty expenses at $5.2 billion and depreciation, depletion and amortisation charges rising to $4.12 billion, up from $3.74 billion in 2024. Production expenses also edged higher to $1.27 billion.
As a result, profit before interest and tax declined to $3.72 billion, down from $4.78 billion in the previous year. Nevertheless, the company maintained strong equity growth, with total equity rising to $11.63 billion at the end of 2025, up from $10.20 billion a year earlier.
A key driver of this increase was the conversion of $3.31 billion in shareholder loans and accrued interest into equity, significantly strengthening the company’s balance sheet. This was partially offset by substantial shareholder returns, including an interim dividend payout of $2.41 billion.
Despite the decline in earnings, EDO reported a modest improvement in other comprehensive income. This brought total comprehensive income to $558.4 million, down from $724.9 million in the prior year.
Established as a key pillar of Oman’s energy sector restructuring, EDO holds the government’s upstream oil and gas interests, including its stake in Petroleum Development Oman, the country’s largest hydrocarbon producer. The company plays a central role in managing revenues from hydrocarbons while supporting fiscal stability and long-term investment in the energy sector.
In 2021, EDO assumed the government’s participating interests in Block 6 — the country’s largest and most significant oil and gas concession, spanning around 90,000 sq km. This included the transfer of the Ministry of Energy and Minerals’ stake in Petroleum Development Oman, which continues to operate the concession and manage exploration, production and related activities under established agreements.
Since its formation, EDO has also expanded its portfolio through the creation of subsidiaries aligned with Oman’s evolving energy priorities. These include Hydrogen Oman (Hydrom), tasked with advancing the green hydrogen sector, as well as entities focused on gas operations and future energy ventures, reflecting EDO’s dual role in managing conventional resources while supporting the country’s energy transition agenda.
Oman Observer is now on the WhatsApp channel. Click here
