Q2 2026 Nebras Energy QPSC Earnings Call

August 5, 2026

Operator: Hello, ladies and gentlemen. This is the operator. Today's conference.

Speaker #1: Hello, ladies and gentlemen. This is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will once again be placed on music hold.

[Unknown Speaker]: Hi

Bobby Sarkar: Hi

Operator: The call is scheduled to begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. Hello, and welcome to Nebras Energy H1 2026 results call. Please note that this call is being recorded. You will have the opportunity to ask questions to our speakers later on during the Q&A session. If you'd like to ask a question by that time, please press star on your telephone keypad. Thank you. I'd like to hand over the call to the moderator. Bobby, you may now begin.

Speaker #1: Thank you for your patience. Hello, and welcome to Nebras Energy's first half 2026 results call. Please note that this call is being recorded. You will have the opportunity to ask questions to our speakers later on during the Q&A session.

Speaker #1: If you'd like to ask a question at this time, please press star on your telephone keypad. Thank you. I'd now like to hand over the call to the moderator, Bobby.

Speaker #1: You may now begin.

Speaker #2: Okay, thank you. Hi, hello everyone. Sorry for the delay. This is Bobby Sarkar, Head of Research at Q&B Financial Services. I wanted to welcome everyone to Nebras Energy's second quarter and first half 2026 results conference call.

[Unknown Speaker]: Okay. Thank you. Hi. Hello, everyone. Sorry for the delay. This is Bobby Sarkar, head of research at QNB Financial Services. I wanted to welcome everyone to Nebras Energy's Q2 and H1 2026 results conference call. On this call, we have Shahzad Gill, who is the chief finance and planning officer at Nebras, and Dan Sabitov, who is the corporate planning, performance, and IR manager. We will conduct this conference with the management first reviewing the company's results, followed by Q&A. I would now like to turn the call over to Shahzad. Shahzad, please go ahead.

Bobby Sarkar: Okay. Thank you. Hi. Hello, everyone. Sorry for the delay. This is Bobby Sarkar, head of research at QNB Financial Services. I wanted to welcome everyone to Nebras Energy's Q2 and H1 2026 results conference call. On this call, we have Shahzad Gill, who is the chief finance and planning officer at Nebras, and Dan Sabitov, who is the corporate planning, performance, and IR manager. We will conduct this conference with the management first reviewing the company's results, followed by Q&A. I would now like to turn the call over to Shahzad. Shahzad, please go ahead.

Speaker #2: On this call, we have Shahzad Gill, who is the Chief Finance and Planning Officer at Nebras, and Daniyar Sabitov, who is the Corporate Planning, Performance, and IR Manager. We will conduct this conference with the management first reviewing the company's results, followed by Q&A.

Speaker #2: I would now like to turn the call over to Shahzad. Shahzad, please go ahead.

Speaker #3: Thank you very much, Bobby. Hi, everyone. Good afternoon. Assalamu alaikum. My apologies for the delay; we ran into some technical issues. I'll start the call with the results, commentary, and analysis.

Shahzad Gill: Thank you very much, Bobby. Hi, everyone. Good afternoon. As-salamu alaykum, and my apologies for the delay. We ran into some technical issues. I'll start the call with the results and commentary and analysis. Dan will pick up halfway through, and you'll have the opportunity to ask questions. Welcome to Nebras Energy's H1 2026 financial results presentation. We shall start with the headlines, as I said, and then we'll get into the analysis. We'll go to slide four of the deck. Nebras Energy Group's operational performance has remained strong throughout H1 2026. This is a testament to our robust, resilient business model. Our plant operations continued during this period without interruption. The company continues to monitor the regional situation closely and is ready to take any measures necessary to maintain seamless operations.

Speaker #3: Dan will pick up halfway through, and then we'll give you the opportunity to ask questions. So, welcome to Nebras Energy's half-year 2026 financial results presentation.

Speaker #3: We shall start with the headlines, as I said, and then we'll get into the analysis. We'll go to slide 4 of the deck. Nebras Energy Group's operational performance has remained strong throughout the first half of 2026.

Speaker #3: And this is a testament to our robust, resilient business model. Our plant operations continued during this period without interruption. The company continues to monitor the regional situation closely and is ready to take any measures necessary to maintain seamless operations.

Speaker #3: Nebras Energy's revenue for the first six months of 2026 is $1.548 billion, which is a 7% increase from the same period last year. The Group posted an EBITDA of $892 million and a net profit of $580 million.

Shahzad Gill: Nebras Energy's revenue for H1 2026 is QAR 1,548 million. This is 7% increase from the same period last year. The group posted an EBITDA of QAR 892 million and net profit of QAR 580 million. Due to delay in senior debt financial close for Facility E project, the company and the rest of the sponsors for the project continue to fund the construction, which is on track as of 30 June 2026. The management and the board decided not to declare interim dividend at this time as the company funds the construction of this strategic and critical project.

Speaker #3: Due to a delay in senior debt financial close for the Facility E project, the company and the rest of the sponsors for the project continue to fund the construction, which is on track as of June 30, 2026.

Speaker #3: The management and the Board decided not to declare an interim dividend at this time, as the Company funds the construction of this strategic and critical project.

Operator: Hello, can anyone hear me from the presenter line?

[Unknown Speaker]: Hello, can anyone hear me from the presenter line?

Speaker #4: Hello, can anyone hear me from the presenter line?

Shahzad Gill: We can hear you, we are in the middle of the call.

Speaker #3: We can hear you, but we are in the middle of the call.

Operator: Hello, can anyone hear me from the presenter line?

[Unknown Speaker]: Hello, can anyone hear me from the presenter line?

Speaker #4: Hello, can anyone hear me from the presenter line?

Speaker #3: Hello.

Shahzad Gill: Hello?

Speaker #4: Hello.

Operator: Hello.

[Unknown Speaker]: Hello.

Shahzad Gill: Who is this?

Speaker #3: Who is this?

Operator: One moment, please.

[Unknown Speaker]: One moment, please.

Speaker #4: One moment's wait.

Speaker #3: So, okay. I'll continue. Nebras Energy Group's gross installed operational power capacity is 20 gigawatts, out of which 4.2 gigawatts is renewables capacity—gross capacity.

Shahzad Gill: Okay. I'll continue. Nebras Energy Group's gross installed operational power capacity is 20 GW.

Operator: Hello?

[Unknown Speaker]: Hello?

Shahzad Gill: Out of which 4.2 GW is renewables capacity.

Operator: Hi, my apologies. Can anyone hear me from the speaker line? I'd like to make sure that you can.

[Unknown Speaker]: Hi, my apologies. Can anyone hear me from the speaker line? I'd like to make sure that you can.

Speaker #4: Hi, my apologies. Can anyone hear me from the speaker line? I'd like to make sure that you can hear me.

Speaker #3: Hello. We can hear you. Hello. Who is this? Ladies and gentlemen, my apologies. I don't know what's going on with the operator, but we'll continue.

Shahzad Gill: Hello, we can hear you. Hello, who is this? Ladies and gentlemen, my apologies. I don't know what's going on with the operator. We will continue. Gross water capacity is 541 MIGD, while gross capacity under construction is 110 MIGD. Currently, there are six CCGT projects under construction in the group portfolio. We are moving on to the next slide. This slide lists out investment highlights. It is important to note that the fundamentals of the business remain strong. Market share in power and water remains high within Qatar. Internationally, we have a well-diversified portfolio of renewable and thermal assets across multiple regions, where demand growth stays strong. Gas plays an important role as transition fuel and renewables are playing their part in replacing old thermal technology. We have long-term off-take contracts for our projects and corresponding long-term fuel supply agreements are in place.

Speaker #3: So, gross water capacity is 541 MIGD, while gross capacity under construction is 110 MIGD. Currently, there are 6 CCGT projects under construction in the group portfolio.

Speaker #3: We are moving on to the next slide. Here, this slide lists out investment highlights. It is important to note that the fundamentals of the business remain strong; market share in power and water remains high within Qatar. Internationally, we have a well-diversified portfolio of renewable and thermal assets across multiple regions, where demand growth stays strong. Gas plays an important role as a transition fuel, and renewables are playing their part in replacing old thermal technology.

Speaker #3: We have long-term off-take contracts for our projects, and corresponding long-term fuel supply agreements are in place. The cost of fuel is recovered through a pass-through mechanism.

Shahzad Gill: Cost of fuel is recovered through pass-through mechanism built within our long-term power and water purchase agreements. With the AI and data center boom, electricity demand internationally is expected to grow significantly in the coming years. Nebras Energy is well-placed to embrace these opportunities, working together with our international partners. I will move to slide number six, please. Our power and water dispatch has been higher compared to H1 2026. Also, our power and water availability is also higher in 2026 compared to the same period last year. Slide number seven. It is the key highlights. During H1 2026, the group posted revenue of QAR 1,548 million. This is 7% higher than same period last year. EBITDA for the period is QAR 893 million. This is 8% lower than the corresponding period last year.

Speaker #3: Built within our long-term power and water purchase agreements. With the AI and data center boom, electricity demand internationally is expected to grow significantly in the coming years.

Speaker #3: Nebras Energy is well placed to embrace these opportunities, working together with our international partners. I'll move to slide number 6, please. Our power and water dispatch has been higher compared to the first half of 2026.

Speaker #3: Also, our power and water availability is higher in 2026 compared to the same period last year. Slide number 7—it’s the key highlights.

Speaker #3: During the first half of 2026, the group posted revenue of $1,548 million. This is 7% higher than the same period last year.

Speaker #3: EBITDA for the period is $893 million. This is 8% lower than the corresponding period last year. Net income attributable to equity holders for the period is $580 million, compared to $662 million last year.

Shahzad Gill: Net income attributable to equity holders for the period is QAR 580 million, compared to QAR 662 million last year. The main driver of lower EBITDA and net income is a one-time fair value adjustment for which Dan will provide more details shortly. With this, I will hand over to Dan to go through the variance analysis. Dan, over to you.

Speaker #3: The main driver of lower EBITDA and net income is a one-time fair value adjustment, for which Dan will provide more details shortly. With this, I'll hand over to Dan to go through the variance analysis.

Speaker #3: Dan, over to you.

Speaker #2: Thank you, Shahzad. And good afternoon, everyone. On slide 8, revenue increased by 7% year-on-year, largely driven by higher sent-out power and water, better availability, and higher capacity charge rates under the PPA.

Dan Sabitov: Thank you, Shahzad. Good afternoon, everyone. On slide eight, revenue increased by 7% year-on-year, largely driven by higher sent-out power and water, better availability, and higher capacity charge rates under the PPA. Gross profit increased to QAR 469 million in 2026, compared with QAR 452 million for the same period last year, mainly reflecting higher revenue, partially offset by higher fuel costs. EBITDA amounted to QAR 893 million in 2026, compared with QAR 972 million for the first six months of 2025. The decrease was mainly driven by a lower share of profit from equity-accounted entities, which will be discussed on the next slide. Turning to slide nine. Share profit from our JVs and associates was QAR 266 million in 2026, compared with QAR 363 million in the prior year.

Speaker #2: Gross profit increased to $469 million in 2026, compared with $452 million for the same period last year, mainly reflecting higher revenue, partially offset by higher fuel cost.

Speaker #2: EBITDA amounted to $893 million in 2026, compared with $972 million for the first six months of 2025. The decrease was mainly driven by a lower share of profit from equity-accounted investees, which will be discussed on the next slide.

Speaker #2: Turning to slide 9, share of profit from our JVs and associates was $266 million in 2026, compared with $363 million in the prior year.

Speaker #2: The decrease was primarily driven by higher capacity charge rates at Razgirtas Power Company, partially offset by higher maintenance costs at Qatar Power Company. For international assets, low earnings from UK Wind were mainly due to a one-time fair value adjustment related to changes in subsidy indexation.

Dan Sabitov: The decrease was primarily driven by higher capacity charge rates at Ras Girtas Power Company, partially offset by higher maintenance costs at QIPCO, Qatar Power Company. For international assets, low earnings from UK Wind were mainly due to a one-time fair value adjustment related to changes in subsidy indexation. Lower construction revenue from the Surkhandarya project in Uzbekistan reflected a prior period catch-up recognized in 2025. Other income decreased from QAR 185 million to QAR 181 million for H1 2026. The decrease is mainly explained by low interest income from lower cash balances. Net profit was QAR 580 million, compared with QAR 662 million reported last year. The decrease was mainly attributable to the one-time fair value adjustment discussed earlier. The group's underlying operational performance remained solid during the period. Key financial highlights for Q2 are available on slide 10.

Speaker #2: Low construction revenue from the Surkhandarya project in Uzbekistan reflected a prior period catch-up recognized in 2025. Other income decreased from $185 million to $181 million for the first six months of 2026.

Speaker #2: The decrease is mainly explained by lower interest income from reduced cash balances. Net profit was $580 million, compared with $662 million reported last year.

Speaker #2: The decrease was mainly attributable to the one-time fair value adjustment discussed earlier, while the group's underlying operational performance remained solid during the period. Key financial highlights for the second quarter are available on slide 10.

Speaker #2: Quarter results in more detail will be covered in the next two slides. Turning to slide 11, higher revenue in the second quarter of 2026 was mainly driven by increased sent-out power and higher capacity charge rates under the PPA.

Dan Sabitov: Q2 results in more details will be covered in the next two slides. Turning to slide 11. Higher revenue in Q2 2026 was mainly driven by increased sent-out power and higher capacity charge rates under the QEWC PPA. The increase in gross profit was primarily from higher revenue, partially offset by higher fuel costs. EBITDA amounted to QAR 442 million versus QAR 530 million reported in Q2 2025. The decrease was largely due to a lower share profit from equity-accounted entities, which we will discuss on the next slide. Moving to slide 12. Decrease in share profit from Joint Ventures and associates, mainly driven by high capacity charge rates and better availability at Ras Girtas Power Company, offset by lower earnings from Umm Al Houl Power.

Speaker #2: The increase in gross profit was primarily from higher revenue, partially offset by higher fuel costs. EBITDA amounted to $442 million, versus $530 million reported in Q2 2025.

Speaker #2: The decrease was largely due to a lower share of profit from equity-accounted investees, which we will discuss on the next slide. Now, moving to slide 12: the decrease in share of profit from joint ventures and associates was mainly driven by high capacity charge rates and better availability at Razgirtas Power Company.

Speaker #2: Offset by lower earnings from Umaz Hoopline. For international assets, the decrease reflected the same drivers mentioned earlier, which are lower profit from the UK Wind business and the Surkhandair project in Uzbekistan.

Dan Sabitov: For international assets, the decrease reflected the same drivers mentioned earlier, which are lower profit from the UK Wind business and the Surkhandarya project in Uzbekistan. Lower other income is mainly attributable to lower interest income on deposits and timing of dividends from available-for-sale investments between the quarters. Net profit for Q2 was QAR 284 million, as compared to QAR 375 million last year. Decrease largely driven by a one-time fair value adjustment in UK Wind, as explained earlier. Turning to financial position on slide 13. Total assets of the group stand at QAR 224.8 billion, with 4% increase comparing to previous year-end, which was mainly due to capital expenditures on Facility E and Ras Laffan projects. Cash remained broadly the same level. Cash generated from operations and debt drawdown was offset by capital expenditures on two projects in Qatar.

Speaker #2: Lower other income is mainly attributable to low interest income on deposits and the timing of dividends from available-for-sale investments between the quarters. Net profit for Q2 was $284 million, as compared to $375 million last year, decreased largely due to a one-time fair value adjustment in the UK Wind, as explained earlier.

Speaker #2: Now, turning to financial position on slide 13: total assets of the group stand at $224.8 billion, with a 4% increase compared to the previous year-end, which was mainly due to capital expenditures on Facility E and raft picker unit projects.

Speaker #2: Cash remained broadly at the same level. Cash generated from operations and debt drawdown was offset by capital expenditures on two projects in Qatar. The decrease in value of available-for-sale investments is driven by the change in market price of shares.

Dan Sabitov: Decrease in value of available-for-sale investments is driven by the change in market price of shares. Moving to slide 14. Total equity of the group increased by QAR 90 million and amounted to QAR 15.9 billion. Increase largely driven by the profit for the period and positive cash flow hedge reserve movement recognized in OCI. Increases in total debt and net debt versus end of 2025 are mostly due to additional drawdowns to support ongoing strategic investments. With that, we will open up for questions. Over to you, Bobby.

Speaker #2: Moving to slide 14, total equity of the group increased by $90 million, amounting to $15.9 billion. This increase was largely driven by the profit for the period and positive cash flow hedge reserve movements recognized in OCI.

Speaker #2: Increases in total debt and net debt versus the end of 2025 are mostly due to additional drawdowns to support ongoing strategic investments. With that, we'll open up for questions.

Speaker #2: Over to you, Bobby.

Speaker #1: Okay. Yeah. Operator, we can open up the call for questions, please. Thank you.

[Unknown Speaker]: Okay. Yeah. Operator, we can open up the call for questions, please. Thank you.

Bobby Sarkar: Okay. Yeah. Operator, we can open up the call for questions, please. Thank you.

Operator: Okay. Thank you so much. At this time, we will now begin the question and answer session. If you would like to ask a question, please press star then the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. We will take our first question from the line of Wei Chow from Al Rayan Investment. Your line is now open. You may now begin.

Speaker #3: Okay, thank you so much. At this time, we will now begin the question and answer session. If you would like to ask a question, please press star, then the number 1 on your telephone keypad.

Speaker #3: If you'd like to withdraw your question, press star 1 again. We will take our first question from the line of Wei Chao from AI Ryan Investment.

Speaker #3: Your line is now open. You may now begin.

Speaker #1: Thank you, gentlemen, for the presentation. This is Zohaib from Al Rayan Investment. Just one question: could you tell us the quantum of this fair value adjustment?

[Analyst] (Al Rayan Investment): Thank you, gentlemen, for the presentation. This is Zoheb from Al Rayan Investment. Just one question. Could you tell us the quantum of this one-off fair value adjustment? How much was it in QAR terms, please?

Zohaib Pervez: Thank you, gentlemen, for the presentation. This is Zoheb from Al Rayan Investment. Just one question. Could you tell us the quantum of this one-off fair value adjustment? How much was it in QAR terms, please?

Speaker #1: How much was it in QAR terms, please?

Speaker #4: Yeah, it's 78 million Qatari riyals.

Shahzad Gill: Yeah. It's QAR 78 million.

Speaker #1: 78.

[Analyst] (Al Rayan Investment): 78.

Zohaib Pervez: 78.

Shahzad Gill: Hi, Zoheb. How are you?

Speaker #4: Hi, Zohaib. How are you?

Speaker #1: Thank you.

[Analyst] (Al Rayan Investment): Thank you.

Zohaib Pervez: Thank you.

Speaker #3: Operator: Again, if you would like to ask a question, please press star 1 on your telephone keypad. The next question comes from the line of Wei Chao from AI Ryan Investment.

Operator: This is the operator. Again, if you would like to ask a question, press star one on your telephone keypad. The next question comes from the line of Wei Chow from Al Rayan Investment. You may now begin.

Speaker #3: You may now begin.

Speaker #1: Hi, good afternoon. Thank you for the call. This is Chao from Al Rayan Investment. Just a question on the status of the acquisition of the Qatar Power and Razgirtas Power.

Wei Chow: Hi, good afternoon. Thank you for the call. This is Chow from Al Rayan Investment. Just a question on the status of the acquisition of the Qatar Power and Ras Girtas Power Company. What is the status of that, and when will it be reflected in the financials?

Speaker #1: What is the status of that? And when will it be reflected in the financials?

Speaker #4: Yeah, thank you for the question. So, we are working through the CPs and the required approvals. There are some government approvals required, for example, from Garama and other regulatory authorities.

Shahzad Gill: Yeah, thank you for the question. We are working through the CPs and the required approvals. There are some government approvals required, for example, from Kahramaa and other regulatory authorities. Also there are some CPs which are left. We are working through those. Given where we are, I believe we can close this transaction, if not in September, then by October.

Speaker #4: And also, there are some CPs which are left. We are working through those. So given where we are, I believe we can close this transaction, if not in September, then by October.

Speaker #1: Okay. And just one other question on the power expansion plans—in Oman and Uzbekistan, could you remind us of the timeline for this and what is the status of the project currently?

Wei Chow: Okay. Just another question on the power expansion plans in Oman and Uzbekistan. Could you remind us of the timeline of this and what is the status of the project currently?

Speaker #4: Yeah.

Dan Sabitov: Yeah. This is Dan. The two projects in Uzbekistan, Sirdarya and Surkhandarya. For Sirdarya 2, we expect COD later this year in Q3. For Surkhandarya project, it is in 2027. For Misfah and Duqm, two projects in Oman, the target COD is in 2029.

Speaker #2: So this is the so the two projects in Uzbekistan, Sardaria 2 and Surkhanda Riya, for Sardaria 2, we expect COD later this year in Q3.

Speaker #2: For Surkhanda Riya project, it is in 2027. For Miswa and Dukhum, two projects in Oman, the target COD is in 2029.

Wei Chow: All right. Okay. Thank you so much.

Speaker #1: All right. Okay. Thank you so much.

Speaker #3: Thank you so much. There are no further questions in the queue. I will now turn the call back over to Bobby for closing remarks.

Operator: Thank you so much. There are no further questions in the queue. I will now turn the call back over to Bobby for closing remarks. Please go ahead.

Speaker #3: Please go ahead.

Speaker #1: Okay. If there are no further questions, we can end the call for today. I wanted to thank Shahzad and Dan for taking the time to go over the presentation and answer our questions.

[Unknown Speaker]: Okay. If there are no further questions, we can end the call for today. I wanted to thank Shahzad and Dan for taking the time to go over the presentation and answer our questions. Again, I would like to apologize for the delay, and we will again pick up this call next quarter. Thank you so much.

Bobby Sarkar: Okay. If there are no further questions, we can end the call for today. I wanted to thank Shahzad and Dan for taking the time to go over the presentation and answer our questions. Again, I would like to apologize for the delay, and we will again pick up this call next quarter. Thank you so much.

Speaker #1: Again, I would like to apologize for the delay, and we will pick up this call again next quarter. Thank you so much.

Shahzad Gill: Okay. Thank you everyone. Thanks.

Speaker #4: Okay, thank you, everyone. Thanks. Bye.

Dan Sabitov: Bye.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

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