Q2 2026 Al Batinah Power Co SAOG Earnings Call

August 2, 2026

Faraz Kothari: The agenda of today's session is HSSE, which will be followed by technical and financial performance, and the last, post PPA opportunities. The first agenda is Health, Safety, Security and Environment.

Speaker #1: The agenda of today's session is HSC, which will be followed by technical and financial performance, and lastly post-PPA opportunities. The first agenda item is health, safety, security, and environment, and we will brief...

[Company Representative] (Al Batinah): Thank you, Faraz. We will brief you about the health, safety, security, and environment for the company. We are pleased to report that the plant has achieved 5,472 days without lost time accident as of end of June 2026, with no lost time accident and also no environmental incident. The company maintain the ISO certificates, which are the international. The first ISO quality management 9001, and the ISO environmental management 14001, and also the occupational health and safety certificates. Moving to the technical performance of the plant. Also, it's showing an excellent performance results through the H1 of the year, as the guaranteed power capacity remain at 736.53 MW, and also the plant reliability was 98.80%. Similarly, the load factor which was achieved during the H1 was 72.9%.

Speaker #2: ...you about the health, safety, security, and environment for the company. We are pleased to report that the plant has achieved 5,472 days without a lost time accident, as of the end of June 26, with no lost time accident and also zero environmental incidents.

Speaker #2: The company maintained the ISO certificates, which are the international—the first ISO quality management 9001, and the ISO environmental management 14001—and also the occupational health and safety certificates.

[Company Representative] (Al Batinah): The first ISO quality management 9001, and the ISO environmental management 14001, and also the occupational health and safety certificates. Moving to the technical performance of the plant. Also, it's showing an excellent performance results through the H1 of the year, as the guaranteed power capacity remain at 736.53 MW, and also the plant reliability was 98.80%. Similarly, the load factor which was achieved during the H1 was 72.9%.

Speaker #2: Moving to the technical performance of the plant, it's also showing excellent performance results through the first half of the year, as guaranteed power capacity remained at 736.53 megawatts, and the plant reliability was 98.80%.

Speaker #2: Similarly, the load factor, which was achieved during the first half, was 72.9 percent. The thermal efficiency remained stable for the first half of 2026, which also shows an efficient plant and maximizes the value of the shareholders.

[Company Representative] (Al Batinah): The thermal efficiency remains stable for the H1 of 2026, which also showing efficient plant and it maximize also the value of the shareholders.

Speaker #1: Regarding the financial performance, as you can see, the half-year 2026 results are better than the same period last year by $1.3 million. You can see from the waterfall that this is actually mainly due to gross profit, which decreased because there was some O&M-related expenditure upgrade this year.

Faraz Kothari: Regarding the financial performance, as you can see, the H1 2026 results are better by the same period last year by OMR 1.3 million. You can see from the waterfall. This is actually mainly due to gross profits was decreased because there was some O&M related expenditure upgrade this year. However, the net results were better due to reduction in interest cost due to scheduled repayment of loan. Next is future strategy and plan. Dividend. The company distribute dividend in June and will also be able to make future dividend distribution subject to the availability of cash as per past trend. Plan outage. In future during Q4 2027, we have a major maintenance for the gas turbine, which will result in higher maintenance costs.

Speaker #1: However, the net results were better due to reduction in interest cost, due to scheduled repayment of loan. Next is future strategy and plan. Dividend: The company distributes dividend in June and will also be able to make future dividend distributions, subject to the availability of cash as per past trend.

Faraz Kothari: Next is future strategy and plan. Dividend. The company distribute dividend in June and will also be able to make future dividend distribution subject to the availability of cash as per past trend. Plan outage. In future during Q4 2027, we have a major maintenance for the gas turbine, which will result in higher maintenance costs.

Speaker #1: Planned outage: In Q4 2027, we will have major maintenance for the gas turbine, which will result in higher maintenance costs. The company has executed a new PPA on 7 April 2026, which will commence on 1 April 2028 for a period of 15 years, until 2043.

Faraz Kothari: The company has executed a new PPA on 7 April 2026, which will be commenced on 1 April 2028 for a period of 15 years until 2043. The opportunities and challenges. Opportunities, as we have already got the extension. Sohar II is a highly efficient plant due to its technology. We are also planning for the potential merger between Swadi and Batinah. Refinancing opportunities are there. Expected high demand growth in the market. Challenges. Spot market is already there. Emerging of new technologies to the electrical grid. Plant cycling after adding more renewables projects. These are the expected estimated challenges which we can see. Disclaimer. This presentation is not and should not be construed as an offer, invitation, or recommendation in respect of company securities. Neither this presentation nor anything stated in it shall form the basis of any contract or commitment.

Speaker #1: The opportunities and challenges: So, opportunities—as we have already got the extension, SOHAR 2 is a highly efficient plant due to its technology. We are also planning for the potential merger between Swadhi and Batinah.

Speaker #1: Refinancing opportunities are there expected high demand growth. In the market, challenges: spot market is already there. Emerging of new technologies to the electrical grid.

Speaker #1: Plant cycling after adding more renewables projects. So, these are the expected estimated challenges which we can see. Disclaimer: This presentation is not and should not be constituted as an offer, invitation, or recommendation in respect of company security.

Faraz Kothari: These are the expected estimated challenges which we can see. Disclaimer. This presentation is not and should not be construed as an offer, invitation, or recommendation in respect of company securities. Neither this presentation nor anything stated in it shall form the basis of any contract or commitment.

Speaker #1: Neither this presentation nor anything stated in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors, and does not take into account the investment objectives, financial situations, or needs of any investor.

Faraz Kothari: This presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation, or needs of any investor. Any future outlook statements or commitments are associated with known and unknown risks and uncertainties. Hence, this presentation provides no guarantee or commitment for any future result, nor expressly or not impliedly. The financial information included in this presentation is of public knowledge disclosed to the market on MSX website, and it is for information purpose only. Now we will open the platform for any question from any investor. If anyone has any question, raise your hand and introduce yourself and to which company you belong. Anyone has any question? We are happy to answer. Yeah. Manna Thomas.

Speaker #1: Any future outlook statements or commitments are associated with known and unknown risks and uncertainties. Hence, this presentation provides no guarantee or commitment for any future result, neither expressly nor implied.

Speaker #1: The financial information included in this presentation is public knowledge, disclosed to the market on the MSX website, and is for information purposes only.

Speaker #1: Now we will open the platform for any questions from any investor. So if anyone has any questions, please raise your hand, introduce yourself, and mention which company you belong to.

Speaker #1: Does anyone have any questions? We are happy to answer. Yes, Thomas.

Speaker #3: Good morning. This is Manna from United Securities. I have a question regarding your refinancing. Can you give the expected timeline for when this is expected to happen? And would this cover the existing debt only, or also include the new capex for the new PPA period?

Manna Thomas: Good morning. This is Manna from United Securities. I have a question regarding your refinancing. Can you give the expected timeline for when this is expected to happen? And would this cover the existing debt only or for the new CapEx for the new PPA period?

Speaker #1: Thank you, Manna Thomas. So regarding your refinancing question, so we are still in the process, and still negotiation are going on, and this is subject to again with the approval of the authorities.

Faraz Kothari: Thank you, Manna Thomas. Regarding your refinancing question. We are still in the process, and still negotiations are going on. And this is subject to, again, with the approval of the authorities. Till now, we have not reached to that progress that we can disclose. Once we have the approvals and we will reach to some progress, then accordingly we will also inform all the shareholders on the MSX. Second question regarding your refinancing amount and the future CapEx. Yes, we will be exploring those things in our refinancing, how to cover our future CapEx plus the current debt. Again, these are under discussions with the expected lenders, and we will again inform whenever we will reach to some major progress. Regarding your third question, when we are expecting to finish.

Speaker #1: So, till now, we have not reached that level of progress that we can, you know, disclose. So, once we have the approvals and we reach some progress, then accordingly, we will also inform all the shareholders on the MSX.

Speaker #1: Second question regarding our refinancing amount and the future capex. Yes, so we will be exploring those things in our refinancing—how to cover our future capex, plus the current debt.

Speaker #1: So again, these are under discussion with the expected lenders, and we will inform you whenever we reach some major progress. Regarding your third question, when we are expecting to finish...

Speaker #1: So as as you are aware, in our financials, that we we our next payment will be in October. So we are targeting that, but again, this will be subject to authority approval.

Faraz Kothari: As you are aware in our financials, that our next payment will be in October. We are targeting that. Again, this will be subject to authority approval.

Speaker #3: Oh, okay. Thank you for that. And also, you mentioned in the presentation that there would be a major maintenance in the fourth quarter of 2027.

Manna Thomas: Oh, okay. Thank you for that. Also, you have mentioned in the presentation that there would be a major maintenance in Q4 2027, before the start of the new PPA. What would be the estimated cost for that? Is it already built into the current impairment or the refinancing CapEx?

Speaker #3: Before the start of the new PPA. So, what would be the estimated cost for that, and is it already built into the current impairment or the refinancing capex?

Speaker #1: Okay, thank you. So regarding your question that how much will be the expected cost. So see, once once the major inspection open, and the plant will be in the inspection, this will be based on some findings.

Faraz Kothari: Okay. Thank you. Regarding your question that how much will be the expected cost. See, once the major inspection open and the plant will be in the inspection, this will be based on some findings. If no findings, no cost. If there will be a finding, there will be a cost. We cannot estimate what amount we will be paying or what amount might come. Again, this is subject to like normal, any machine open, and then accordingly, it decided how much need to be done. This is not nothing to do with the refinancing. The refinancing is different thing, and this major CapEx, which we have in our last 15 years, a major inspection has came. Nothing to do with that, and it will be covered through our normal operation cash flows. One more question. Impairment.

Speaker #1: If there are no findings, there is no cost. If there is a finding, there will be a cost. So, we cannot estimate what amount we will be paying, or what amount might come.

Speaker #1: So again, this is subject to, like normal, any machine open, and then accordingly, it is decided how much needs to be done. This is not, this has nothing to do with the refinancing.

Speaker #1: The refinancing is a different thing, and this major capex—which we have for our last 15 years' major, major inspection—has come. So nothing to do with that, and it will be covered through our normal operational cash flows.

Speaker #1: One more question on impairment. So again, this is not linked with the impairment also. This major capex has nothing to do with impairment.

Faraz Kothari: Again, this is not linked with the impairment also. This major CapEx, nothing to do with impairment.

Speaker #3: Okay, thank you. Thank you for your answers.

Manna Thomas: Okay. Thank you. Thank you for your answers.

Speaker #1: Thank you. Does anyone else have any questions? We are happy to answer them. Yes, Mana, you raised your hand.

Faraz Kothari: Thank you. Anyone else have any questions? We are happy to answer. Yes, Manna, you raised this.

Speaker #3: Yes, yes. If anyone else is there, may I continue? Just one more question.

Manna Thomas: Yes. If no one else is there, may I continue just one more question?

Speaker #1: No problem, please.

Speaker #3: Okay. With regards to the merger announcement, can you give a few more details on the expected timeline and how the structure is going to happen?

Faraz Kothari: No problem, please.

Manna Thomas: Okay. With regards to the merger announcement, can you give a few more details on that expected timeline or how the structure is going to happen? If you can provide a few details.

Speaker #3: If you can provide a few details.

Speaker #1: Yeah, thank you, Mana, again. So, again, the same thing—the merger we have explored in order to maximize the shareholder benefit and their future regarding cash flow. It will be, obviously, increased.

Faraz Kothari: Yeah. Thank you, Manna, again. Again, it's the same thing that merger we have explored in order to maximize the shareholder benefit and their future regarding cash flow, it will be obviously increased. Again, this is subject to authority approval. We are still waiting for approvals. Once we will get the approval, then we can initiate the process. Again, it is in process, and once we will get the approval, then we will initiate some of the work and accordingly will inform the market. Once major material information will be available, any progress might come, we will inform to the shareholders.

Speaker #1: Again, this is subject to authority approval. We are still waiting for approvals. Once we get the approval, we can initiate the process.

Speaker #1: So again, it is in process, and once we get the approval, then we will start to initiate some of the work, and accordingly, we'll inform the market.

Speaker #1: So once any major material information becomes available, or any progress is made, we will inform the shareholders.

Speaker #3: Okay, understood. But just one more thing—if I can understand how the PP direct structure will be with the EWP. Would it be a combined PPA structure, or would each plant retain its own PPA terms?

Manna Thomas: Okay. Understood. Just one more thing on if I can understand how the PPA tariff structure will be with the OPWP. Would it be a combined PPA structure, or would it each plant retain its own PPA terms?

Speaker #1: So, it will be separate, separate. So, it will not combine. Whatever signed PPAs or signed contracts we have with each plant, they will continue the same.

Faraz Kothari: It will be separate. It will not combine whatever we have the signed PPAs or signed contracts with each plant. It will be continue same.

Speaker #3: Okay, thank you.

Manna Thomas: Okay. Thank you.

Speaker #1: You're welcome. Does anyone else have any questions? If there are no questions, then we can end the session. So thank you, everyone, for joining. I think there are no more questions.

Faraz Kothari: You're welcome. Anyone else has any questions? If no questions, then we can end the session. Thank you everyone for joining. I think there is no more questions. Thank you for your time joining this investor session of Al Batinah. We will be closing the meeting now. Thank you. Thank you, everyone.

Speaker #1: Thank you for your time and for joining this investor session of Al Batinah. We will be closing the meeting now. Thank you everyone.

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Q2 2026 Al Batinah Power Co SAOG Earnings Call

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