Oman LNG’s profits surge 68% to $1bn

Muscat - 

Additional gas volumes and improved oil and gas prices boosted Oman LNG’s revenues by 60 per cent to US$3.5bn at the end of 2018 compared to US$2.19bn in the previous year.

Net income of the company, after deduction of tax, surged by 68 per cent to US$1.079bn by the end of 2018 compared to US$642mn in 2017.

In its annual report for 2018, Oman LNG affirmed that despite growing operational activities and commercial businesses, the company managed to reduce its operational expenses by US$9mn during 2018 compared to the approved budget, thanks to a series of cost optimisation initiatives adopted by the company. Oman LNG’s contribution to taxes stood at US$170mn in 2018.

Oman LNG’s production rate hit 10.4mn tonnes per annum compared to 8.6mn tonnes per annum in 2017. Its production of intensive natural gas derivatives stood at 239,367 tonnes during the year.

Meanwhile, total revenues of Qalhat LNG stood at US$1.23bn during 2018 while shipping optimisation achieved cost reductions of US$23mn.

H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas and chairman of Oman LNG said, “Our company entered 2018 with a resolve to disengage from the deflationary mindset embedded across the industry and to fully embrace the return of modest growth. So, one year on, it is no complacency to reflect with satisfaction on how much that resolve has been rewarded. Even more encouraging are the production and safety records we continue to deliver, and that is where true expansion now lies.”

H E Rumhi added, “As each year passes with an unbroken safety record, the pressure to not fail escalates. The figures at year-end are no less than phenomenal, with almost 30mn man-hours without lost time injury and that in a context of substantially increased production. We can be proud to have sealed for another year our reputation as a company, that places a no-compromise value on personal safety and asset integrity.”

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