MUSCAT, NOV 1
Publicly listed Oman Fisheries Company SAOG is pursuing negotiations with a local investor for a potential recapitalisation aimed at rescuing its financially distressed operations, after severe liquidity constraints brought fish procurement and much of its processing activity to a virtual standstill during the first nine months of 2026.
The company's financial position remains precarious, with accumulated losses reaching RO 23.464 million as of September 30, 2026, resulting in the complete erosion of its share capital. Its current liabilities also exceeded current assets by approximately RO 3.178 million, underscoring the scale of its working capital deficit and the urgency of securing fresh funding.
In its Board of Directors' report for the nine-month period, Oman Fisheries characterised the operating environment as "exceptionally challenging", citing "severe liquidity constraints" that disrupted procurement, production continuity, supplier confidence and its ability to meet certain financial obligations.
Fish procurement remained largely suspended after January 2026 because of insufficient working capital, triggering a sharp contraction in sales and the gradual shutdown of factory operations. Outstanding payments to fishermen further undermined supplier confidence, compounding the company's difficulties in maintaining business continuity, it said.
The financial impact was reflected in a steep 80.2 per cent decline in revenue to RO 282,136 during January–September 2026, compared with RO 1.428 million in the corresponding period of 2025.
Gross losses widened to RO 639,183 from RO 553,475 a year earlier. However, the operating loss narrowed to RO 1.315 million from RO 1.497 million, while the net loss eased to RO 1.442 million against RO 1.693 million previously. Net finance costs declined to RO 169,316 from RO 196,594.
Against this backdrop, the company is pinning its recovery prospects on negotiations with an unnamed local investor whose proposed capital injection could provide the liquidity necessary to progressively restart procurement, reopen processing facilities and rebuild relationships with fishermen and suppliers.
"The Board is confident that this recapitalization will represent a key milestone in the Company's transformation journey," the report stated, pointing to prospects for financial stabilisation, operational growth and long-term shareholder value.
Initial recovery measures are already underway. Oman Fisheries resumed third-party processing in September, handling 269 metric tonnes during the month, alongside efforts to restart export operations. These activities are intended to generate revenue and partially recover fixed operating costs pending a broader operational revival.
Nevertheless, the company's financial position remains under considerable strain, with cash-flow management, lender engagement, statutory compliance and "going concern" considerations identified as continuing priorities for the Board.
The proposed investment, if successfully concluded, could therefore prove pivotal to restoring the company's operational viability and supporting its longer-term turnaround, it added.
Oman Observer is now on the WhatsApp channel. Click here
