Half Year 2026 Muscat City Desalination Co SAOG Earnings Call
Megumi Kikuta: Kubura Muscat. Our business is production of potable water via seawater desalination process. Our plant's capacity is 191,000 cu m per day. Our client is Nama Power and Water Procurement Company, NPWP. Our contract start from signed in February 2013. The COD was February 2016. The IPO was January 2018. Okay. Can you go to next page? Okay. I gonna touch upon the two issues. One is water output delivered, and second is plant availability. In this Q1, our water output delivered was slightly lower than last year. Basically, the reason is our maintenance activity, we concentrated in Q1. That's why slightly lower than last year. Basically, this water output delivered is based on our client's dispatch instruction. Next one is plant availability. Plant availability for H1 was 95.88%. That was also slightly lower than last year.
Megumi Kikuta: Kubura Muscat. Our business is production of potable water via seawater desalination process. Our plant's capacity is 191,000 cubic meters per day. Our client is Nama Power and Water Procurement Company, NPWP. Our contract start from signed in February 2013. The COD was February 2016. The IPO was January 2018. Okay. Can you go to next page? Okay. I gonna touch upon the two issues. One is water output delivered, and second is plant availability. In this Q1, our water output delivered was slightly lower than last year. Basically, the reason is our maintenance activity, we concentrated in Q1. That's why slightly lower than last year. Basically, this water output delivered is based on our client's dispatch instruction. Next one is plant availability. Plant availability for H1 was 95.88%. That was also slightly lower than last year.
Speaker #1: Kubera Muscat's business is the production of potable water via seawater desalination. Our plant's capacity is 190,000 cubic meters per day, and our client is Nama Power and Water Procurement Company, NPWP.
Speaker #1: And our contract started when it was signed in February 2023, and the COD was February 2016. And the IPO was January 2018. Okay. Can you go to the next page?
Speaker #1: Okay. I'm going to touch upon two issues. One is water output delivered, and the second is plant availability. In this first quarter, our water output delivered was slightly lower than last year.
Speaker #1: Basically, the reason is that our maintenance activity was concentrated in the first quarter. That's why it's slightly lower than last year. And basically, this water output delivered is based on our client's dispatch instruction.
Speaker #1: And the next one is plant availability. Plant availability for the first half was 95.88%. That was also slightly lower than last year, but as I mentioned, our maintenance activity was concentrated in the first half, in the first quarter.
Megumi Kikuta: As I mentioned, our maintenance activity concentrated in the Q1. That's why slightly lower than last year. Basically, our expected plan was 94%. Comparing to our plan, slightly higher than our expectation. We also touch upon the historical availability change. 95% is not so high, not so low. Okay, can you go to next page? Next topic is HSE. HSE means Health, Safety, and Environment. Our company, we didn't experience the lost time incident during this H1 for this year. We achieved 3,775 days without any LTI since COD. That was our status. We haven't experienced environmental incident during this H1 of this year. Please go to next page. Next topic is CSR, Corporate Social Responsibility. Same as usual, our allocated budget was OMR 8,000. Our activity is still ongoing for this year.
Megumi Kikuta: As I mentioned, our maintenance activity concentrated in the Q1. That's why slightly lower than last year. Basically, our expected plan was 94%. Comparing to our plan, slightly higher than our expectation. We also touch upon the historical availability change. 95% is not so high, not so low. Okay, can you go to next page? Next topic is HSE. HSE means Health, Safety, and Environment. Our company, we didn't experience the lost time incident during this H1 for this year. We achieved 3,775 days without any LTI since COD. That was our status. We haven't experienced environmental incident during this H1 of this year. Please go to next page. Next topic is CSR, Corporate Social Responsibility. Same as usual, our allocated budget was OMR 8,000. Our activity is still ongoing for this year.
Speaker #1: That's why it's slightly lower than last year. But basically, our expected plan was 94%. So, compared to our plan, it's slightly higher than our expectation.
Speaker #1: So, and we also touched upon the historical availability change. 95% is not so high, not so low. Okay. Can you go to the next page?
Speaker #1: Next topic is HSE. HSE means Health, Safety, and Environment. The company achieved— we didn't experience any lost time incident during this year. And we achieved 3,775 days without any LTI since COD.
Speaker #1: That was our status, and we also haven't experienced any environmental incident during the first half of this year. Please go to the next page.
Speaker #1: Next topic is CSR: corporate social responsibility. As usual, our allocated budget was 8,000 Omani riyal, and our activity is still ongoing for this year.
Speaker #1: And forecast area is the same as usual: education, water awareness programs for students, and helping the less fortunate people of the community. Okay, can you go to the next page?
Megumi Kikuta: Focus area is same as usual, education, water awareness program for students, and helping the unfortunate people of the community. Okay, can you go to next page? Next topic is financial highlights. From this agenda, our CFO, Mr. Farah, will explain the details. Please go ahead, Farah.
Megumi Kikuta: Focus area is same as usual, education, water awareness program for students, and helping the unfortunate people of the community. Okay, can you go to next page? Next topic is financial highlights. From this agenda, our CFO, Mr. Farah, will explain the details. Please go ahead, Farah.
Speaker #1: Next topic is financial highlights. From this agenda, our CFO, Mr. Farah, will explain the details. Please go ahead, Farah.
Speaker #2: Assalamualaikum and a very good morning, everybody. My name is Khairul Farah. I'm the Chief Financial Officer for MCDC. I will run through with you the performance of the first half of 2026 versus the first half of 2025.
Khairul Farah: Assalamualaikum and very good morning, everybody. My name is Khairul Farah. I'm the Chief Financial Officer for MCDC. I will run through with you guys the performance of H1 of 2026 versus H1 of 2025. In front of you'll see six bar charts. In terms of the revenue, for H1 of 2026, we made OMR 8.68 million against OMR 8.75 million compared to last year. The slight decrease is, as mentioned earlier by Mr. Tsukuta, that our plant availability is slightly lower, but still within the range of operation limit. With regards to gross profit, we clocked in OMR 3.14 million against OMR 3.15 million. It's very stable at the moment. General expenses is slightly lower by OMR 50,000 in comparison to H1 2025. We are at OMR 0.45 million for general admin expenses for 2026.
Khairul Falah: Assalamualaikum and very good morning, everybody. My name is Khairul Farah. I'm the Chief Financial Officer for MCDC. I will run through with you guys the performance of H1 of 2026 versus H1 of 2025. In front of you'll see six bar charts. In terms of the revenue, for H1 of 2026, we made OMR 8.68 million against OMR 8.75 million compared to last year. The slight decrease is, as mentioned earlier by Mr. Tsukuta, that our plant availability is slightly lower, but still within the range of operation limit. With regards to gross profit, we clocked in OMR 3.14 million against OMR 3.15 million. It's very stable at the moment. General expenses is slightly lower by OMR 50,000 in comparison to H1 2025. We are at OMR 0.45 million for general admin expenses for 2026.
Speaker #2: In front of you, you will see six bar charts. In terms of the revenue, for the first half of 2026, we made OMR 8.68 million against OMR 8.75 million compared to last year.
Speaker #2: And the slight decrease is, as mentioned earlier by Mr. Kikucha, that our plant availability is slightly lower but still within the range of operational limits.
Speaker #2: With regards to gross profit, we clocked in OMR 3.14 million against OMR 3.15 million. It's very stable at the moment. G&A expenses are slightly lower by OMR 50,000.
Speaker #2: In comparison to H1 2025, we are at OMR 0.45 million for general admin expenses for 2026. This is just a timing difference because one of the inspections that we were supposed to do in June was delayed to July due to the tension in the Gulf.
Khairul Farah: This is just a timing difference because one of the inspection that we're supposed to do in June was delayed to July because of the tension in the Gulf, so our technical advisor couldn't arrive here on time. Financial cost is lower, compared to 2025 H1 of the same period. financial cost is OMR 1.12 million for 2026 against OMR 1.22 million for 2025. Main reason is because carrying on borrowings between last 2025 and this time 2026. With regards to profit before tax, we're clocking OMR 1.57 million against OMR 1.43 million for the same period last year. Mainly, the slightly higher number compared to last year is because we have better recovery of our bio recipients with PWP. lastly, profit after tax is OMR 1.33 million for 2026 against OMR 1.20 million for 2025 H1 of the year.
Khairul Falah: This is just a timing difference because one of the inspection that we're supposed to do in June was delayed to July because of the tension in the Gulf, so our technical advisor couldn't arrive here on time. Financial cost is lower, compared to 2025 H1 of the same period. financial cost is OMR 1.12 million for 2026 against OMR 1.22 million for 2025. Main reason is because carrying on borrowings between last 2025 and this time 2026. With regards to profit before tax, we're clocking OMR 1.57 million against OMR 1.43 million for the same period last year. Mainly, the slightly higher number compared to last year is because we have better recovery of our bio recipients with PWP. lastly, profit after tax is OMR 1.33 million for 2026 against OMR 1.20 million for 2025 H1 of the year.
Speaker #2: Our technical advisor couldn't arrive here on time. The financial cost is lower compared to the first half of 2025 in the same period. The financial cost is 1.12 million Omani Riyal for 2026, against 1.22 million Omani Riyal for 2025.
Speaker #2: The main reason is because of bringing down the borrowings between the end of 2025 and this time in 2026. With regards to profit before tax, we clocked in OMR 1.57 million against OMR 1.43 million for the same period last year.
Speaker #2: Mainly, the slightly higher number compared to last year is because we have better recovery of our buyer receivables with PWP. And lastly, profit after tax is OMR 1.33 million for 2026, against OMR 1.20 million for the first half of 2025.
Speaker #2: The effective tax rate is still at a similar level of 15.5% to 16%. On share price, as of exactly the 30th of June, MCDC share price is 92 baisas per share.
Khairul Farah: Effective tax rate is still at a similar level of 15.5% to 16%. On share price, as at 30 June, MCDC share price is 92 baisa per share. The same time last year was 70 baisa. Dividend in the AGM that we have held on the 26 March 2026, the shareholders has approved a distribution for May and November 2026 from the retained earnings of the company, end of 31 December 2025, not exceeding 5.464 baisa per share in total. of course, in April 2026, the board has resolved to distribute cash dividends of value of 2.732 baisa per share out of the retained earnings as of December 2025 to shareholders who are registered in the company as at 17 May 2026. This dividend was already paid in May 2026. That's all on the financial highlights for the H1 of the year.
Khairul Falah: Effective tax rate is still at a similar level of 15.5% to 16%. On share price, as at 30 June, MCDC share price is 92 baisa per share. The same time last year was 70 baisa. Dividend in the AGM that we have held on the 26 March 2026, the shareholders has approved a distribution for May and November 2026 from the retained earnings of the company, end of 31 December 2025, not exceeding 5.464 baisa per share in total. of course, in April 2026, the board has resolved to distribute cash dividends of value of 2.732 baisa per share out of the retained earnings as of December 2025 to shareholders who are registered in the company as at 17 May 2026. This dividend was already paid in May 2026. That's all on the financial highlights for the H1 of the year.
Speaker #2: The same time last year was 70 baisa. Dividend in the AGM that we have held on the 26th of March 2026, the shareholders have approved a distribution for May and November 2026.
Speaker #2: From the retained earnings of the company, ended 31st December 2025, not exceeding 5.464 biza per share in total. And, of course, in April 2026, the Board has resolved to distribute cash dividends of value 2.732 biza per share out of the retained earnings of December 2025, to shareholders who are registered in the company as at 17 May 2026.
Speaker #2: These dividends were already paid in May 2026. That's all on the financial highlights for the first half of the year. I will now pass it back to Kikucha to run through the outlook of the business.
Khairul Farah: I'll pass this back to Kikuta to run through the outlook of the business.
Khairul Falah: I'll pass this back to Kikuta to run through the outlook of the business.
Speaker #1: Okay. Can you go to the next page? The outlook and the challenges are basically the same as before. Our business is secured based on the long-term contract with NPWP.
Megumi Kikuta: Okay. Can you go to the next page? The outlook and the challenges are basically the situations same as before. Our business is secured based on the long-term contract with Nama PWP. as we've shown on the screen, our opportunity is the high water demand in Muscat zone, and the challenge is extraordinary natural phenomenon or, as we understood, the regional conflict is also challenges. so far, there are no impact for us, basically. We believe our performance is very stable, I believe we can keep the same level of the dividend in the future. That is our outlook. Thank you. That's it from us. If anyone has some question or something, please let us know. No one has a question? Okay, we're going to finish our session.
Megumi Kikuta: Okay. Can you go to the next page? The outlook and the challenges are basically the situations same as before. Our business is secured based on the long-term contract with Nama PWP. as we've shown on the screen, our opportunity is the high water demand in Muscat zone, and the challenge is extraordinary natural phenomenon or, as we understood, the regional conflict is also challenges. so far, there are no impact for us, basically. We believe our performance is very stable, I believe we can keep the same level of the dividend in the future. That is our outlook. Thank you. That's it from us. If anyone has some question or something, please let us know. No one has a question? Okay, we're going to finish our session.
Speaker #1: And as we have shown on the screen, our opportunity is the high water demand in the Muscat zone, and the challenges are extraordinary natural phenomena. As we understand, the regional conflict is also a challenge, but so far there has been no impact for us, basically.
Speaker #1: We believe our performance is very stable, and I believe we can keep the same level of the dividend in the future. That is our outlook.
Speaker #1: Thank you. That's it from us. If anyone has a question or something, please let us know. No one has a question? Okay. We're going to finish our session.
Speaker #2: All right. Thank you very much for your support.
Khairul Farah: All right. Dave, thank you very much for your support.
Khairul Falah: All right. Dave, thank you very much for your support.
Speaker #1: Thank you. Thank you very much.
Megumi Kikuta: Thank you
Megumi Kikuta: Thank you
Khairul Farah: Thank you.
Khairul Falah: Thank you.
Megumi Kikuta: Thank you very much.
Megumi Kikuta: Thank you very much.
Khairul Farah: Bye.
Khairul Falah: Bye.
