Spot market, contract optimisation deals boost Oman LNG 2023 revenue
Spot market and contract optimisation deals buoyed Oman LNG’S earnings by more than $1 billion last year in line with majority state-owned company’s revamped marketing strategy that emphasises the importance of agility in capitalising on market opportunities.
The total revenue for the year, however, declined 21 per cent to $4.9 billion, down from $5.774 billion in 2022. Net Income After Tax (NIAT) totalled $1.5 billion, down from $1.970 billion in 2022.
Oman LNG Chief Executive Officer Hamed al Naamany stressed the “robust” financial results of the company, bolstered in particular by its flexible and agile marketing capabilities.
“Our track record includes 173 LNG cargos deliveries (combined from Oman LNG and Qalhat LNG), underscoring the scale and efficiency of our operations. In terms of financial performance, we maintained robust results with a total revenue of $4.9 billion and a Net Income After Tax (NIAT) of $1.5 billion,” Al Naamany stated in the company’s newly published 2023 Annual Report.
“Notably, we achieved a second consecutive recordbreaking financial performance, highlighting the strength and reliability of our long-term agreements. Meanwhile, Qalhat
LNG (QLNG) allocated a total revenue of $2,353 million in 2023, with an impressive dividend yield of 17 per cent from the invested portfolio.
Oman LNG remained active in the spot market and contracts optimisation leveraging increased agility and deals that yielded over $ 1 billion in upside.”
Of the 173 cargoes of LNG delivered during 2023, 6 per cent constituted spot sales, while the balance 94 per cent comprised shipments based on long-term contracts. A further 31 cargoes of natural gas liquids (NGLS), a byproduct of LNG production, were delivered to domestic offtakers during the year.
Talal al Aufi, Chairman – Oman LNG, said the company “set a benchmark with a production above the nameplate capacity of 11.4 million metric tonnes per annum of LNG in 2023”. A notable highlight of the year, he said, was the mandate granted by shareholders to Oman LNG’S management team to facilitate the extension of the company beyond 2024.
“As a part of this mandate, the Ministry of Energy and Minerals supported Oman LNG and Qalhat LNG’S marketing campaign for 10 and 4 years respectively. In pursuance, Oman LNG was able to secure sales term commitments of up to 10.4 mtpa through term sheet agreements with a number of buyers and shareholders in Asia and European markets.