OQ Gas Networks (OQGN), the owner and operator of Oman’s gas transportation system, declared dividends totaling around RO 44 million ($114 million) for 2023, its first since the majority state-owned company successfully listed on the Muscat Stock Exchange (MSX) last October following a record-breaking Initial Public Offering (IPO).

OQGN, a subsidiary of OQ Group, declared dividends of RO 33 million in January 2024 for the first nine months of 2023, and an additional RO 11 million in March 2024, for the last three months of 2023, the company announced in its Q1 financial results for the current year.

Reflecting its sound fundamentals, OQGN recorded a 17% improvement in EBIDTA (earnings before interest, taxes, depreciation, and amortization), which rose to reach a value of RO 22.2 million in Q1 2024, up from RO 18.9 million in Q1 2023. Net profit climbed 18% to RO 13.6 million in Q1 2024 vs. RO 11.5 million for the corresponding quarter of 2023.

“OQGN started 2024 with the implementation of Price Control 3 (PC3), for a period of four years. PC3 set an increased return on capital (weighted average cost of capital) at 7.79% (7.30% in 2023),” the company stated.

Around 10.13 billion cubic metres (bcm) of natural gas was transported across its 4,000 km long gas pipeline network during the first quarter of this year.

Earlier, in February, the monopoly operator of the country’s gas networks reported revenues of RO 174 million in 2023, up from RO 160.4 million a year earlier. EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed to RO 84 million, up from RO 71 million a year earlier. Profit was also up at RO 55.5 million, from RO 45.6 million in 2022. Concession receivable and contract assets were also up 4.5% to reach RO 1.042 billion as of end-2023.

Publicly-traded OQGN is majority-owned by OQ, the integrated energy group of Oman.