Q2 2026 Phoenix Power Co SAOG Earnings Call

August 12, 2026

[Company Representative] (Phoenix Power): Disclaimer slide. Before we proceed, please note that this presentation is provided for information purpose only. It should not be considered as investment advice or a recommendation regarding the company security. The financial information presented today is unaudited and has already been publicly disclosed to the Muscat Stock Exchange. Now let us move into the first topic, our commitment safety. At Phoenix Power, safety remains our highest priority. Our guidance principle is simple: nothing is so urgent or important that cannot be done safely. This is more than a saying, it is reflecting the way we operate every day. Every activity carries our safety at the front of our decision. Now let me please introduce our project. The Sur IPP is one of Oman's largest power generation facilities.

Speaker #1: Same or standard. Before we proceed, please note that this presentation is provided for information purposes only. It should not be considered as investment advice or a recommendation regarding the company's securities.

Speaker #1: The financial information presented today is unaudited and has already been publicly disclosed on the MSX website. Now, let us move to the first topic: our committee's commitment to safety.

Speaker #1: At Phoenix Power, safety remains our highest priority. Our guiding principle is simple: nothing is so urgent or important that it cannot be done safely. This is more than a saying; it reflects the way we operate every day.

Speaker #1: Every activity is carried out with safety at the front of our decisions. Now, let me briefly introduce our project. The Sour ID 1 is Oman's largest power generation facility.

Speaker #1: It is a built-on and operates as a combined cycle gas, under a 15-year power purchase agreement, and it is extended for another 15 years until March 2044.

[Company Representative] (Phoenix Power): It is built, owned, and operated as a combined cycle plant under a 15-years power purchase agreement, and it is extended for another 15 years, March 2044. The plant is located within Sur Industrial Estate, approximately 180 kilometers from Muscat. The project has a generation capacity of 2,000 megawatts with investment value of 1.6 billion USD. The plant is owned by Phoenix Power Company, while the operation are managed by Phoenix Operation & Maintenance Company. This slide shows our contractual framework. Phoenix Power Company own the asset, while the Phoenix Operation & Maintenance Company is responsible for operation plant. Our major shareholders are Japanese company, which holds 52%, while the share offering to the IPO represented 34.9% from the total shares. Our generation license is signed with Authority for Public Services Regulation in Oman.

[Company Representative] (Phoenix Power): It is built, owned, and operated as a combined cycle plant under a 15-years power purchase agreement, and it is extended for another 15 years, March 2044. The plant is located within Sur Industrial Estate, approximately 180km from Muscat. The project has a generation capacity of 2,000MW with investment value of $1.6 billion. The plant is owned by Phoenix Power Company, while the operation are managed by Phoenix Operation & Maintenance Company. This slide shows our contractual framework. Phoenix Power Company own the asset, while the Phoenix Operation & Maintenance Company is responsible for operation plant. Our major shareholders are Japanese company, which holds 52%, while the share offering to the IPO represented 34.9% from the total shares. Our generation license is signed with Authority for Public Services Regulation in Oman.

Speaker #1: The plant is located within Sour Industrial Estate, approximately 180 km from Muscat. The project has a generation capacity of 2,000 megawatts, with an investment value of $1.6 billion.

Speaker #1: The plant is owned by Phoenix Power Company, while the operations are managed by Phoenix Operation and Management Company. This slide shows our contractual framework.

Speaker #1: Phoenix Power Company owned the assets, while the Phoenix Operation and Maintenance Company is responsible for operating the plants. Our major shareholders are Japanese companies, which hold 22%, while the shares offered in the IPO represented 34.9% of the total shares.

Speaker #1: Our generation license is signed with the Authority for Public Services Regulation in Oman. We have a power purchase agreement signed with TEMA Power and Water Procurement Company, and a gas purchase agreement with ITC.

[Company Representative] (Phoenix Power): We have a power purchase agreement signed with Nama Power and Water Procurement Company and a gas purchase agreement with Integrated Gas Company. Following the successful refinancing, our new lenders are the National Bank of Oman and Sohar International Bank. Our long-term service agreement is with Siemens, and our operational insurance broker is Marsh and Partners. Sur IPP continues to play an important role in Oman electricity sector. Our plant contribution approximately 23% of the total capacity. Now we present our health, safety, and environmental performance. We are pleased to report another strong safety performance during the period. The slide highlights our HSE statistics for the Q2 2026, including the total safe man hours accumulated since the commercial operation, as well the man hours worked during 2026. The results reflect our continuous commitment of our employees and contracts to maintain a safe working environment. Let us look to our operation performance.

Speaker #1: Following the successful refinancing, our new lenders are the National Bank of Oman and Sohar International Bank. Our long-term service agreement is with Siemens, and our operational insurance broker is Megal & Partners.

Speaker #1: SOUR IPP continues to play an important role in Oman's electricity sector. Our plants contribute approximately 23% of the total contracted operational capacity. Now, we'll present our health, safety, and environmental performance.

Speaker #1: We placed two reports, another strong safety performance during the period. The slide highlights our SSC statistic for the second quarter of 2026, including the total safe man-hours accumulated since the commercial operation, as well as the man-hours worked during 2026.

Speaker #1: The results reflect our continued commitment of our employees and contractors to maintain a safe working environment. Let us look to our operational performance. The commercial availability remained exceptionally strong at 99.84% during the first half of 2026, compared with 99.85% during the same period last year.

[Company Representative] (Phoenix Power): The commercial availability remained exceptionally strong at 99.84% during the H1 2026, comparing with 99.85% during the same period last year. The electricity generation totaled 4,611.97 gigawatt hours comparing with the same period of 2025. In the next three slides, we will present the company unaudited income statement for the six-month period ending 30 June 2026, comparing with the figure for the same period the last year. Rather than reviewing each line visually, I will focus to the key factors that influence our financial performance during the period. Overall, the company delivered a stable financial performance during the first year of the 2026. The key factor influence our results. The operational performance remained always strong with the commercial availability maintained at approximately 99.84%, and the financial results item have an overall positive impact, mainly due to the saving arising from re-evaluation the ARO.

[Company Representative] (Phoenix Power): The commercial availability remained exceptionally strong at 99.84% during the H1 2026, comparing with 99.85% during the same period last year. The electricity generation totaled 4,611.97GW hours comparing with the same period of 2025. In the next three slides, we will present the company unaudited income statement for the six-month period ending 30 June 2026, comparing with the figure for the same period the last year. Rather than reviewing each line visually, I will focus to the key factors that influence our financial performance during the period. Overall, the company delivered a stable financial performance during the first year of the 2026. The key factor influence our results. The operational performance remained always strong with the commercial availability maintained at approximately 99.84%, and the financial results item have an overall positive impact, mainly due to the saving arising from re-evaluation the ARO.

Speaker #1: The electricity generation total is 4,211.97 gigawatt-hours, compared with the same period of 2025. In the next three slides, we will present the company and audited income statement for the six-month period ending 30 June 2026.

Speaker #1: Comparing with the figure for the same period last year, and reviewing each line visually, I will focus on the key factors that influenced our financial performance during the period.

Speaker #1: Overall, the company delivered a stable financial performance during the first year of 2026. The key factor influencing our results: the operational performance remained strong, with commercial availability maintained at approximately 99.84%. The financial results item had an overall positive impact, mainly due to savings arising from re-evaluation of the arrow.

Speaker #1: Together with the interest income, this positive movement was partially offset by the impact of the hydrogen-related item and certain other financial assessments. The net result is a profit of 13.2 million riyals for this period, compared with 12.27 million Omani riyals for the same period last year, having a positive impact of 1.05 million Omani riyals.

[Company Representative] (Phoenix Power): Together with the interest income, this positive movement were partially offset by the impact of the hedging-related item and certain other financial assessments. The net result is profit OMR 13.2 million for this period, comparing with OMR 12.27 million for the same period last year, having a positive impact of OMR 1.05 million. As a result of this factor, the company records a reasonable improvement in the profit comparing with the corresponding period last year. This is the conclude of our presentation. Thank you for your attention and for your interest in Phoenix Power Company. We will be now pleased to answer any question you may have. Please, when you ask, present yourself and your company for us. Mohammed?

Speaker #1: As a result of this factor, the company recorded a reasonable improvement in profit compared with the corresponding period last year. This concludes our presentation.

Speaker #1: Thank you for your attention and for your interest in Phoenix Power Company. We will now be pleased to answer any questions you may have.

Speaker #1: Please, when you speak, introduce yourself and your company. Mohammed?

Speaker #2: Hi, this is Abbas from U Capital. My first question is on the PPA that was renewed. Can you give us some details in terms of what sort of capacity charge you are looking at in the new PPA versus the old one?

[Company Representative] (U Capital): Hi.

Abbas Ali: Hi.

[Company Representative] (Phoenix Power): Hi.

[Company Representative] (U Capital): This is Abbas from Ubhar Capital. My first question is on the PPA that was renewed. Can you give us some details in terms of what sort of capacity charge are you looking at in the new PPA versus the old? That's my first question.

Abbas Ali: This is Abbas from Ubhar Capital. My first question is on the PPA that was renewed. Can you give us some details in terms of what sort of capacity charge are you looking at in the new PPA versus the old? That's my first question.

Speaker #2: That's my first question.

Speaker #1: Okay, thank you for your questions. Actually, this is compensation information, and we are not allowed to disclose it to the market.

[Company Representative] (Phoenix Power): Well, thank you for your question. Actually, this is as a confidential information, and we are not allowed to disclose it to the market.

Speaker #2: Okay, I had another question. The second question is, I noticed in your notes you mentioned that the total loan facility that you signed is $720 million.

[Company Representative] (U Capital): I had another question. The second question is, I noticed in your notes you mentioned that the total loan facility that you signed is $720 million. But if I look at your existing facility and the announcement that you made that you want to pay the entire retained earnings as dividend, and you're waiting for the external audit to conclude, there's still a gap of this $120 million that you're taking approximately as a new facility. Can you explain why this new debt is needed? Are you expanding the capacity of the plant? Is there a long-term life extension CapEx? Because it's a big number, $120 million, that you're speaking about when you mention in the notes.

Abbas Ali: I had another question. The second question is, I noticed in your notes you mentioned that the total loan facility that you signed is $720 million. But if I look at your existing facility and the announcement that you made that you want to pay the entire retained earnings as dividend, and you're waiting for the external audit to conclude, there's still a gap of this $120 million that you're taking approximately as a new facility. Can you explain why this new debt is needed? Are you expanding the capacity of the plant? Is there a long-term life extension CapEx? Because it's a big number, $120 million, that you're speaking about when you mention in the notes.

Speaker #2: But if I look at your existing facility and the announcement that you made—that you want to pay the entire retained earnings as dividend, and you're waiting for the external audit to conclude—there's still a gap of this $120 million that you're taking approximately as a new facility.

Speaker #2: Can you explain why this new debt is needed? Are you expanding the capacity of the plant? Is there a long-term life extension capex?

Speaker #2: Because there's it's a big number, 120 million dollars. That you're speaking about when you when you mentioned in the notes.

Speaker #1: You are right. The remaining funds will be utilized for our capex, to maintain our plant in the future. Are there any further questions? Mohammed, has anyone raised their hand for questions?

[Company Representative] (Phoenix Power): You are right. The remaining will be utilizing for our CapEx to maintain our plant future. Any further questions? Mohammed, anyone has raising his hand for questions?

Speaker #2: Yes, please.

[Company Representative] (Phoenix Power): Yes, please.

Ahmed Alhinai: Yes, please.

Speaker #1: Yes.

Speaker #2: This is Ahmad Lina from Dafar Insurance Company. We would like to know when the audited financials will be published, or if there is any expected date?

[Company Representative] (Phoenix Power): Yes.

[Company Representative] (Phoenix Power): This is Ahmed Lenay from Dhofar Insurance Company. We are wondering when the audited financial will be published, or is there any expected date? Because till now it has not been announced. Is there any expected dividend to be distributed?

Ahmed Alhinai: This is Ahmed Lenay from Dhofar Insurance Company. We are wondering when the audited financial will be published, or is there any expected date? Because till now it has not been announced. Is there any expected dividend to be distributed?

Speaker #2: Because until now it has not been announced, is there any expected dividend to be distributed?

[Company Representative] (Phoenix Power): As disclosed in the company announcement, the proposed special cash dividends remain subject to the completion of the audit of the financial statement, as well all the necessary approval from the board of director and the relevant authority. Once this process completed, the company will call for the OGM for the shareholders to consider and approve the proposed dividends.

Speaker #1: As disclosed in the company announcement, the proposed special cash dividends remain subject to the completion of the audit of the financial statement, as well as all necessary approvals from the Board of Directors and the relevant authorities.

Speaker #1: Once this process is completed, the company will call for the OJM for the shareholders to consider and approve the proposed dividends.

Speaker #2: Again, we need the expected date. Is there an expected date in our minds? Will it be this month, or the upcoming month, by September?

[Company Representative] (Phoenix Power): Again, we need the expected. Is there any expected date, by month? Will it be this month or upcoming month by September?

Ahmed Alhinai: Again, we need the expected. Is there any expected date, by month? Will it be this month or upcoming month by September?

[Company Representative] (Phoenix Power): Estimation, it will be end of September.

Speaker #1: Estimation—it will be end of September. Thank you. Mohammed, any further questions?

[Company Representative] (Phoenix Power): Okay, thank you.

Ahmed Alhinai: Okay, thank you.

[Company Representative] (Phoenix Power): Thank you. Mohammed, any further questions?

Speaker #2: Yes. Can you hear me?

[Company Representative] (Phoenix Power): Yes. Can you hear me?

Rao Aamir Ali: Yes. Can you hear me?

Speaker #1: Yes, yes, we can hear you.

[Company Representative] (Phoenix Power): Yes.

[Company Representative] (Phoenix Power): Hello?

Rao Aamir Ali: Hello?

[Company Representative] (Phoenix Power): Yes, we can hear you.

Speaker #2: Can you hear me?

[Company Representative] (Phoenix Power): Can you hear me?

Rao Aamir Ali: Can you hear me?

Speaker #1: Yes. Yes.

[Company Representative] (Phoenix Power): Yes.

[Company Representative] (Phoenix Power): Yes. This is Rao Amrity from Ubhar Capital. I have a follow-up question regarding the PPA which Mr. Tahir has asked. The term of new PPAs is till 2044, and your loan is also maturing at the same timeline. Can we expect that you are getting the new PPA, which also comprising the loan amount? The last PPA was return equity, debt repayments, operation maintenance, and insurance. Can we take this guideline? The capacity payment for 2025 was around OMR 68.7 million. If you cannot give us the exact number of the capacity payment, can you give a guide to what percentage of OMR 68.7 million we might take as a capacity payment for new PPA?

Rao Aamir Ali: Yes. This is Rao Amrity from Ubhar Capital. I have a follow-up question regarding the PPA which Mr. Tahir has asked. The term of new PPAs is till 2044, and your loan is also maturing at the same timeline. Can we expect that you are getting the new PPA, which also comprising the loan amount? The last PPA was return equity, debt repayments, operation maintenance, and insurance. Can we take this guideline? The capacity payment for 2025 was around OMR 68.7 million. If you cannot give us the exact number of the capacity payment, can you give a guide to what percentage of OMR 68.7 million we might take as a capacity payment for new PPA?

Speaker #2: Yes, this is Raw Amiri from Obah Capital. I have a follow-up question regarding the PPA. Mr. Abbas has asked whether the term of the new PPAs is still until 2044 and if your loan is also maturing around the same timeline.

Speaker #2: Can we expect that you are getting a new PPA which also includes the loan amount? Like, the last PPA was for return equity, debt repayment, suppression, maintenance, and insurance, etc.?

Speaker #2: Can we take this as a guideline? And the capacity payment for 2025 was around $68.7 million. So if you can't give us the exact number for the capacity payment, can you tell us what percentage of the $68.7 million we would take as a capacity payment for a new PPA?

Speaker #1: I will allow my colleague, Mr. Saif Faisal, to give you an answer.

[Company Representative] (Phoenix Power): I will allow my colleague, Mr. Saeed Faisal, he will give you an answer on this.

Speaker #2: So, if I understand your question correctly, you are trying to link the loan with the structure of the PPA, right? As I have disclosed in the financials, the PPA is still until March 2044, and the loan will be maturing in June 2043.

Saeed Faisal: If I understand your question correctly, you are trying to link the loan with the structure of PPA, right? As per disclosing the financials, the PPA is till March 2044, and the loan will be maturing in June 2043. Both information are disclosed in the financials, and this is the refinance loan.

Syed Faisal: If I understand your question correctly, you are trying to link the loan with the structure of PPA, right? As per disclosing the financials, the PPA is till March 2044, and the loan will be maturing in June 2043. Both information are disclosed in the financials, and this is the refinance loan.

Speaker #2: So, both pieces of information are disclosed in the financials. And this is the refinance loan.

Speaker #1: Did anyone have an answer?

[Company Representative] (Phoenix Power): If anyone has another.

Speaker #3: Yes, this is Abhishek from Liva Group. I wanted to understand one point: you are paying off your retained earnings as a dividend, of course, subject to auditor approval.

[Company Representative] (Liva Group): Yes. This is Abhishek from Liva Group. I wanted to understand on one point, wherein you are paying off your retained earnings as dividend, of course, subject to auditor approval, and you have a long-term PPA. What kind of dividend sustainability we can expect for the future periods if you are paying out your retained earnings at the moment?

Abhishek Khetan: Yes. This is Abhishek from Liva Group. I wanted to understand on one point, wherein you are paying off your retained earnings as dividend, of course, subject to auditor approval, and you have a long-term PPA. What kind of dividend sustainability we can expect for the future periods if you are paying out your retained earnings at the moment?

Speaker #3: And you have a long-term PPA. What kind of dividend sustainability can we expect for future periods if you are paying out your retained earnings at the moment?

Speaker #1: Normally, our dividends are as per the company policy, which is already disclosed in the market. And we expect, inshallah, if there's any special dividend or any increase in the dividend percentage, we will definitely disclose it in the market.

[Company Representative] (Phoenix Power): Normally, our dividends are as per the company policy, which is already disclosed in the market. We expect, inshallah, if there is any special dividends or any increase in the dividend percent, we definitely disclose it in the market.

Speaker #2: Hi. This is Abbas again.

[Company Representative] (U Capital): Hi, this is Tahir again.

Abbas Ali: Hi, this is Tahir again.

Speaker #1: Yes.

[Company Representative] (Phoenix Power): Yes.

Speaker #2: I had a question for the CFO. Ahmad, if you look at all the renewals that have happened in the past, there has been an impairment expense that's been booked by all these companies.

[Company Representative] (U Capital): I had a question for the CFO, Ahmed. If you look at all the renewals that have happened in the past, there has been an impairment expense that has been booked by all these companies. Phoenix has not booked this expense. Currently, you are going to an external audit. Is there a reason why you have not booked it? Is it because of the nature of the new sort of renewal, the tariff terms have been more favorable where if you look at the present value of all future cash flows that you are going to accumulate, it is not going to lead to an impairment of your fixed assets?

Abbas Ali: I had a question for the CFO, Ahmed. If you look at all the renewals that have happened in the past, there has been an impairment expense that has been booked by all these companies. Phoenix has not booked this expense. Currently, you are going to an external audit. Is there a reason why you have not booked it? Is it because of the nature of the new sort of renewal, the tariff terms have been more favorable where if you look at the present value of all future cash flows that you are going to accumulate, it is not going to lead to an impairment of your fixed assets?

Speaker #2: Now, Phoenix hasn't booked this expense, and currently you're going into an external audit. Is there a reason you know why you haven't booked it?

Speaker #2: Is it because of the nature of the new sort of renewal? The tariff terms have been more favorable, where if you look at the present value of all future cash flows that you're going to accumulate, it's not going to lead to an impairment of your fixed assets.

Speaker #3: Thank you, Abbas, for your questions. In answer to your query—definitely, that's the reason. I mean, we cannot book impairment as it is. We have, of course, the external auditor reviewing all these things.

Ahmed Al Abri: Thank you, Tahir, for your questions. The answer to your query, definitely that is the reason. We cannot book impairment as it is. We have, of course, the external auditor reviewing all these things. So there has been no change in the impairment position since last year, and we are not expecting that in the near future.

Ahmed Al-Abri: Thank you, Tahir, for your questions. The answer to your query, definitely that is the reason. We cannot book impairment as it is. We have, of course, the external auditor reviewing all these things. So there has been no change in the impairment position since last year, and we are not expecting that in the near future.

Speaker #3: So there has been no change in impairment position since last year, and we are not expecting that in the near future.

Speaker #2: I have another question, if you allow me to ask.

Ahmed Al Abri: I have another question, if you allow me to ask.

Abbas Ali: I have another question, if you allow me to ask.

Speaker #1: Yes, please. Go ahead.

[Company Representative] (Phoenix Power): Yes, please. Go ahead.

Speaker #2: With the special dividend given, Bezza, can we expect another dividend, like the regular dividend you are paying—six Bezzas per share annually?

[Company Representative] (Phoenix Power): With the special dividend of 81 baisa, can we expect another dividend, like regular dividend you people are paying six baisa per share annually?

Abbas Ali: With the special dividend of 81 baisa, can we expect another dividend, like regular dividend you people are paying six baisa per share annually?

Speaker #3: Sorry, we didn't get your question clearly. Could you please repeat your question?

Ahmed Al Abri: Sorry, we didn't get your question clearly. Can you just repeat your question, please?

Ahmed Al-Abri: Sorry, we didn't get your question clearly. Can you just repeat your question, please?

Speaker #1: Mohammed, can you ask him to unmute his mic?

[Company Representative] (Phoenix Power): Ahmed, can you give him. Ask him to unmute his mic.

Speaker #2: Can you hear me now?

[Company Representative] (Phoenix Power): Can you hear me now?

Abbas Ali: Can you hear me now?

Speaker #1: Yes. Can you please repeat your question?

[Company Representative] (Phoenix Power): Yes. Can you please repeat your question?

Speaker #2: Yes, my question is whether the 81 Bezza special dividend incorporates the regular dividend or if the regular dividend will be announced separately?

[Company Representative] (Phoenix Power): Yes. My question is that, the 81 baisa special dividend incorporates the regular dividend, or the regular dividend will be announced separately?

Abbas Ali: Yes. My question is that, the 81 baisa special dividend incorporates the regular dividend, or the regular dividend will be announced separately?

Speaker #3: No, that actually covers all dividends. So, 81 base—what we have proposed, and as our colleagues here mentioned, it is subject to certain approval.

Ahmed Al Abri: No, that actually cover all dividends. So 81 baisa, what we have proposed, and as our colleague here mentioned, it is subject to a certain approval. But if that has been approved by all the parties, that will be the full retaining of the company in the financial statement. So there will be not expected any additional dividends in this year.

Ahmed Al-Abri: No, that actually cover all dividends. So 81 baisa, what we have proposed, and as our colleague here mentioned, it is subject to a certain approval. But if that has been approved by all the parties, that will be the full retaining of the company in the financial statement. So there will be not expected any additional dividends in this year.

Speaker #3: But if that has been approved by the all the parties, that will be the the full dividend sorry, the full retained earning of the of the company in the financial financial statement.

Speaker #3: So, there will not be any additional dividends expected this year.

[Company Representative] (Phoenix Power): Okay. Ahmed, any further questions? Yes. Joyce Mathew, you are unmuted.

[Company Representative] (Phoenix Power): Okay. Ahmed, any further questions?

Speaker #1: Mohammed, any further questions?

Speaker #2: Yes, Joyce, not you. You're unmuted.

Operator: Yes. Joyce Mathew, you are unmuted.

Speaker #4: Hello, good morning. Thank you. Thank you for the presentation and the answers so far. But you know, one observation that I have from the answers so far is that you are not disclosing the full information.

Joyce Mathew: Hello. Good morning.

Joice Mathew: Hello. Good morning.

[Company Representative] (Phoenix Power): Morning.

Joyce Mathew: Thank you for the presentation and the answers so far. But one observation that I have from the answers so far is that you are not disclosing the full information. This is a public call where the minority shareholders have the only opportunity to interact with the management. Also, I have noticed that you are not allowing more than one question, so I am taking this opportunity to ask all my questions. I have around 10 questions on the company, so I wanted to ask in this meeting. So how should we go about this? Should we go one by one, or will you be taking all the questions right now?

Joice Mathew: Thank you for the presentation and the answers so far. But one observation that I have from the answers so far is that you are not disclosing the full information. This is a public call where the minority shareholders have the only opportunity to interact with the management. Also, I have noticed that you are not allowing more than one question, so I am taking this opportunity to ask all my questions. I have around 10 questions on the company, so I wanted to ask in this meeting. So how should we go about this? Should we go one by one, or will you be taking all the questions right now?

Speaker #4: This is a public call where the minority shareholders have the only opportunity to interact with management. Also, I have noticed that you're not allowing more than one question.

Speaker #4: So, I'm taking this opportunity to ask all my questions. I have around 10 questions on this—on the company's—wanted to ask in this meeting.

Speaker #4: So I'm how do we how should we go about this? Should we go one by one or should we be taking will you be taking all the questions right now?

Speaker #1: It's up to you, Mr. Matthew. You can go one by one, or you can ask all of them fully, then we will answer.

[Company Representative] (Phoenix Power): Up to you, Mr. Mathew. You can go one by one, or you can ask all of them fully, then we will answer.

Speaker #4: Okay. Fine. So then let's go by one by one. So you know, one of the questions, two three of the questions that earlier raised were about you know, overview of the new PPA and how does it compares with the existing one and the on the operational and financial aspects.

Joyce Mathew: Okay, fine. Let's go one by one. One of the questions, two, three of the questions that earlier raised were about an overview of the new PPA and how does it compares with the existing one and on the operational and financial aspects, and you said this is a confidential information. But one thing that I have noticed is you have now discussed this with the banks, and the banks have given you OMR 750 million on loan, specifically based on certain financial projections. So I would highly appreciate if you can share the information because you are on a contracted business model where you have the contract for next 18 years and your capacity charge, your energy charge, and even your O&M charges are fixed to a certain extent.

Joice Mathew: Okay, fine. Let's go one by one. One of the questions, two, three of the questions that earlier raised were about an overview of the new PPA and how does it compares with the existing one and on the operational and financial aspects, and you said this is a confidential information. But one thing that I have noticed is you have now discussed this with the banks, and the banks have given you OMR 750 million on loan, specifically based on certain financial projections. So I would highly appreciate if you can share the information because you are on a contracted business model where you have the contract for next 18 years and your capacity charge, your energy charge, and even your O&M charges are fixed to a certain extent.

Speaker #4: And you said this is confidential information. But one thing that I have noticed is that you have, you know, discussed this with the banks, and the banks have given you $750 million on loan.

Speaker #4: Specifically, based on certain financial projections, I would highly appreciate it if you could share the information. You are on a contracted business model, where you have the contract for the next 18 years.

Speaker #4: And your capacity charge your energy charge and even your random charges are fixed to a certain extent. So if if you can share us the overview of what the financial aspects are and what are the operational aspects like what the capacity that you have contracted for and what are and assuming 100 percent plan availability and in a blue sky scenario, what's the expected EBITDA difference that you are envisaging between the new PPA as well as the current PPA?

Joyce Mathew: If you can share us the overview of what the financial aspects are and what are the operational aspects like, what is the capacity that you have contracted for? And I am assuming 100% plan availability and in a blue sky scenario. What is the expected EBITDA difference that you are envisaging between the new PPA as well as the current PPA? Are there any other operational aspects that we should be looking at? You mentioned earlier that there is OMR 100 million plus that you require for CapEx requirements. What are these CapEx requirements? Because over the last 15 years, you did not have any significant CapEx requirements. What are the CapEx requirements that you are looking for after the expiry of this contract? If you can just start with answering these questions, that will be very helpful. Then I will remain here for asking the other questions.

Joice Mathew: If you can share us the overview of what the financial aspects are and what are the operational aspects like, what is the capacity that you have contracted for? And I am assuming 100% plan availability and in a blue sky scenario. What is the expected EBITDA difference that you are envisaging between the new PPA as well as the current PPA? Are there any other operational aspects that we should be looking at? You mentioned earlier that there is OMR 100 million plus that you require for CapEx requirements. What are these CapEx requirements? Because over the last 15 years, you did not have any significant CapEx requirements. What are the CapEx requirements that you are looking for after the expiry of this contract? If you can just start with answering these questions, that will be very helpful. Then I will remain here for asking the other questions.

Speaker #4: And are there any other operational aspects that we should be looking at? You mentioned earlier that there's a $100 million-plus amount that you require for capex requirements.

Speaker #4: And what are these capex requirements? Because over the last 15 years, you didn't have any significant capex requirements. So, what are the capex requirements that you are looking for, you know, after the expiry of this contract?

Speaker #4: So if you can, you know, just start with answering these questions, that will be very helpful. And then I will remain here to ask the other questions.

Speaker #3: Thank you, Matthew. So, back to your point where you said there is, I mean, limited information, and you pointed out about the PPA. So, PPA is something—a contractual agreement between us and the PWB.

Ahmed Al Abri: Thank you, Mathew. Back to your point where you said there is limited information, and you point out about the PPA. PPA is something, a contractual agreement between us and the OPWP. It is actually something we cannot disclose to the public. This is something within the company. So we cannot go and disclose such kind of agreement. As I mentioned, something is between us and other party, and we are not allowed to do that. This is one thing. We are here to disclose whatever has been requested from us to disclose as per the law and regulations. We are disclosing the six-month unaudited financial statement of the company that has been provided by Nora overview. We should not give any things that cannot be provided at this stage. This is another thing.

Ahmed Al-Abri: Thank you, Mathew. Back to your point where you said there is limited information, and you point out about the PPA. PPA is something, a contractual agreement between us and the OPWP. It is actually something we cannot disclose to the public. This is something within the company. So we cannot go and disclose such kind of agreement. As I mentioned, something is between us and other party, and we are not allowed to do that. This is one thing. We are here to disclose whatever has been requested from us to disclose as per the law and regulations. We are disclosing the six-month unaudited financial statement of the company that has been provided by Nora overview. We should not give any things that cannot be provided at this stage. This is another thing.

Speaker #3: And it is actually something we cannot disclose to the public. This is something within the company. So we cannot, I mean, go and disclose these kind of agreements.

Speaker #3: As I mentioned, something is between us and the other party, and we are not allowed to do that. So this is one thing. We are here to disclose whatever has been requested from us to disclose, as per the law and regulations.

Speaker #3: Okay, we are disclosing the six years, six months unallotted financial statement of the company that has been provided by Noura, for overview. Okay. We should not, I mean, give any things that cannot be provided at this stage.

Speaker #3: Okay, this is another thing. And back to your question regarding the capex. Yes, in the last 10 years, there was no additional capex required as we just passed 10 years.

Ahmed Al Abri: Back to your question regarding the CapEx. Yes, last 10 years, there was no additional CapEx required. As we just passed 10 years, there was no requirement for any additional CapEx during the past periods. However, going forwards, there will be expectation that will be requirement for expenditures for additional CapEx. This will be covering the lifetime extensions of machines. Plus, we are also doing some upgrade as we disclose in the market. So our capacity will be slightly improved and that will be as a contribution from our end. We know that the electricity demand has been increased, so we propose some additional upgrade on our machines that will enhance the capacity of the cities and that has been discussed with the offtaker during the PPA extension that has been agreed. So all of these CapEx will be related to that particular work in the future.

Ahmed Al-Abri: Back to your question regarding the CapEx. Yes, last 10 years, there was no additional CapEx required. As we just passed 10 years, there was no requirement for any additional CapEx during the past periods. However, going forwards, there will be expectation that will be requirement for expenditures for additional CapEx. This will be covering the lifetime extensions of machines. Plus, we are also doing some upgrade as we disclose in the market. So our capacity will be slightly improved and that will be as a contribution from our end. We know that the electricity demand has been increased, so we propose some additional upgrade on our machines that will enhance the capacity of the cities and that has been discussed with the offtaker during the PPA extension that has been agreed. So all of these CapEx will be related to that particular work in the future.

Speaker #3: So, there was no requirement for any additional capex during the past period. However, going forward, there is an expectation that there will be a requirement for expenditures on additional capex.

Speaker #3: This is will be covering the lifetime extensions. Of of machines plus also we are doing some upgrade as we disclose in the in the in the market.

Speaker #3: So our capacity will be slightly improved, and that will be, you know, as a contribution from our end. We know that the electricity demand has increased.

Speaker #3: So we propose some additional upgrades on our machines, which will enhance the capacity of the ETs. That has been discussed with the offtaker during the PP extension.

Speaker #3: That has been agreed. So, all of these CapEx will be related to that particular work in the future.

Speaker #1: Further questions?

[Company Representative] (Phoenix Power): Further questions. Mr. Talib Al-Rawahi.

Speaker #2: Mr. Farab. Maybe.

Speaker #4: السلام عليكم ورحمة الله وبركاته. وعليكم السلام ورحمة الله وبركاته.

Speaker #1: حياكم الله.

Speaker #4: السؤال أجيبه باللغة العربية، ما في إمكانية.

Speaker #1: تفضل.

Speaker #4: بالنسبة لي، عندي ثلاث استفسارات. الاستفسار الأول عن التوزيع الاستثنائي: لماذا اعتمدت الشركة التوزيع الاستثنائي هذا من أرباح مستقبلية متوقعة؟ قد تحرم المستثمرين اللاحقين في الشركة من هذه الأرباح.

Speaker #4: يعني الأرباح اللي توزع الحين هي بقرض، والقرض فيه تكلفة. بالتالي، هذه التكلفة كلها بيدفعها المستثمرون اللاحقون في الشركة ويستفيد منها المستثمرون الحاليون في الشركة.

Speaker #4: وهي كذا كذا ولا كذا بتأثر على الأرباح اللي توزَّع بعد التوزيع الاستثنائي هذا من 2027 وطالع إلى نهاية العقد. هي قد تُكافئ المستثمرين الموجودين حالياً، ولكن تُؤثر تأثير جوهري على المستثمرين اللي يدخلوا في الشركة.

Speaker #4: ويعايشوا الشركة وأرباحها الحقيقية، لكن ما يستفيدوا من هذه الأرباح الحقيقية، استفاد منها الناس اللي كانوا موجودين في الشركة في عام 2026. هي مكافأة للمستثمرين الحاليين، ولكنها تؤثر تأثير جوهري على المستثمرين اللاحقين.

Speaker #4: هذا استفساري الأول. استفساري الثاني بالنسبة للتوزيعات المستقبلية. طبعاً سُئل هذا السؤال من أكثر من زميل هنا، وكان جوابكم شوي غامض. أن التوزيعات بتستمر، ولكن لم يكن هناك جواب مقنع.

Speaker #4: على أساس الناس يريدون يستمرون في الشركة ويريدون يعرفون وضع الشركة في المستقبل، وهذا شيء مهم جدًا. التوزيعات المستقبلية بعد التوزيع الاستثنائي هذا، كم المتوقع التوزيعات؟ حاليًا التوزيعات بين خمسة إلى ستة في المئة من، ويش يسموه، من القيمة الاسمية.

Speaker #4: ماذا عن التوزيعات المستقبلية من 2027 حتى نهاية العقد؟ التوزيع، سؤالي الثالث، نفس الشيء؛ سُئِل من أكثر من زميل وكان جوابكم فيه نفس الشيء، ما كان واضحًا، ولكن هذا مهم جدًا للمستثمرين في الشركة.

Speaker #4: ماذا عن تفاصيل العقد؟ تفاصيل العقد حالياً مبهمة، ولكن أي مستثمر يريد أن يستمر في الشركة يجب أن يعرف تفاصيل هذا العقد ومدى جدواه، وجوده في الشركة، واستمراره فيها.

Speaker #4: تمام. أتمنى أنكم تجاوبون بشكل أوضح إن شاء الله. أشكركم.

Speaker #1: شكراً، أخي العزيز. فاضل أحمد العبري سيرد على استفساراتك.

Speaker #3: شكراً جزيلاً على هذه الأسئلة. أول شيء نتطرق إليه هو الأرباح. طبعاً، هذه الأرباح ليست أرباحاً مستقبلية، للتوضيح. نحن لا نوزّع أرباحاً مستقبلية، ولا يمكن لأي شركة أن توزّع أرباحاً مستقبلية.

Speaker #3: هذه التوزيعات هي أرباح لسنوات سابقة، وليست لأرباح سنوات لاحقة. فالأرباح هي أرباح تراكمت لسنوات سابقة، والشركة لم تتمكن من توزيعها. ولكن الآن، في ظل وجود السيولة، ستقوم الشركة بالتوزيع.

Speaker #3: أما الأرباح، اللي هي المستقبلية، هذه ما ممكن الشركة أنها توزعها حالياً بأي صورة. القانون لا يسمح. بالنسبة للأرباح المستقبلية، الأرباح المستقبلية ما راح تتأثر بتوزيعات الأرباح الحالية.

Speaker #3: والشركة عندها سياسة، اللي هي تعظيم التوزيعات. إحنا كشركة طبعاً ما عندنا، يعني إحنا نملك محطة، هي Special Project. طبعاً ما فيه توسع إلا في محطات مثل شركات ثانية أو شيء.

Speaker #3: فكل الأرباح متى ما توفرت راح توزع، هذه هي سياسة الشركة. التوزيعات الأرباح المستقبلية متوقعينها إن شاء الله راح تكون مقاربة للتوزيعات السابقة. ما بيكون في تأثير، مثل ما قلت لك، على توزيعات الأرباح المستقبلية.

Speaker #3: والأرباح المستقبلية راح أكيد يعني تعلن. وبناءً عليه راح يتم توزيع الأرباح على المساهمين. المستثمرين أو اللي عندهم أسهم في فترة التوزيع راح يستفيدوا نفس الشيء من الأرباح المستقبلية.

Speaker #3: هذه بالنسبة للنقطة الثانية. النقطة الثالثة هي بطبيعة الحال. يعني التعاقدات طبعاً إحنا كان عندنا تعاقد إلى 15 سنة مع الشركة العمانية لشراء الطاقة.

Speaker #3: طبعاً كان من المفترض أن ينتهي في 2029. نحن عملنا على تجديد العقد مع الشركة العمانية لشراء الطاقة. طبعاً هذا من صالح المساهمين، سواء كانوا صغاراً أو كباراً.

Ahmed Al Abri: طبعًا هذا من صالح المساهمين سواء كان صغار أو كبار. فتجديد العقد، لأننا لا نملك إلا عقدًا واحدًا، وأرباحنا والشركة معتمدة على هذا الشيء، فبالتالي هذا من صالح المستثمرين في المدى الطويل. تفاصيل العقود مثل هذه؟ تفاصيل العقود طبعًا مثلما ذكرنا هي تفاصيل ليست فقط مرتبطة بالشركة ولكن أيضًا هناك أطراف أخرى، وبالتالي بعض الرموز لا يمكن ذكرها أو طرحها. فهذا توضيحًا لكلامك.

Speaker #3: فتجديد العقد، لأننا ما عندنا إلا عقد واحد، وأرباحنا والشركة معتمدة على هذا الشيء. فأكيد يعني هذه من صالح المستثمرين في المدى الطويل.

Speaker #3: التفاصيل العقود مثل هذه التفاصيل العقود طبعا هذه مثل ما ذكرنا هي تفاصيل مش فقط مرتبطة بالشركة. ولكن أيضا في أطراف أخرى. وبالتالي ما ممكن يعني بعض الأمور ما ممكن إحنا نذكرها أو أو نطرحها يعني.

Speaker #3: فهذه يعني توضيحا لكلامك يعني.

Ahmed Al-Abri: [Foreign language].

Speaker #4: هلو.

Speaker #1: يس.

Joyce Mathew: Hello.

Joice Mathew: Hello.

Speaker #4: Since you are muted, it's for now immediately after asking the questions. I will list out my questions and I have put them in the chat.

Ahmed Al Abri: Yes.

Ahmed Al-Abri: Yes.

Joyce Mathew: Since you are muting us immediately after asking the questions, I will list out my questions and I have put them in the chat. So if you can read out those questions and answer them one by one that would be very highly appreciated. Or I shall read it out here and maybe you can refer to those questions and answer them. How do you want to take it?

Joice Mathew: Since you are muting us immediately after asking the questions, I will list out my questions and I have put them in the chat. So if you can read out those questions and answer them one by one that would be very highly appreciated. Or I shall read it out here and maybe you can refer to those questions and answer them. How do you want to take it?

Speaker #4: So, if you can, you know, read out those questions and answer them one by one, that would be very highly appreciated. Or I will—I shall read it out here, and maybe you can refer to those questions and answer them.

Speaker #4: How do you want to take it?

Speaker #3: Yeah, Matthew, can you list all your questions here one time, so we can go one by one and answer?

Ahmed Al Abri: Yeah, Mr. Mathew, you can list all your question here one time, so we can go one by one.

Ahmed Al-Abri: Yeah, Mr. Mathew, you can list all your question here one time, so we can go one by one.

Speaker #4: اوكي. سو اس ا فولو اب تو يور تو يور انسر ايرلير اند مي كوستين. سي ايم نوت اسكين اباوت ذا ترمز اوف بي بي بي.

Joyce Mathew: Okay. As a follow-up to your answer earlier and my question, see, I am not asking about the terms of PPA, I am asking about what is the exact difference between the current PPA which you are already working on, and how the new PPA is different from the current PPA. What are the operational aspects as well as the financial aspects? Because right now you have taken a loan, and that loan requires you to pay almost OMR 28 million every year until 2043. Correct? Once you have a full drawdown. You are basing it on certain assumptions, and the banks are giving you the money. So USD 720 million loan is not a small amount, and that is going to have a major impact on the company. We are trying to understand what is the impact that is coming up from the new PPA. How is it different?

Joice Mathew: Okay. As a follow-up to your answer earlier and my question, see, I am not asking about the terms of PPA, I am asking about what is the exact difference between the current PPA which you are already working on, and how the new PPA is different from the current PPA. What are the operational aspects as well as the financial aspects? Because right now you have taken a loan, and that loan requires you to pay almost OMR 28 million every year until 2043. Correct? Once you have a full drawdown. You are basing it on certain assumptions, and the banks are giving you the money. So USD 720 million loan is not a small amount, and that is going to have a major impact on the company. We are trying to understand what is the impact that is coming up from the new PPA. How is it different?

Speaker #4: ايم اسكين اباوت وات از ذي اكساكت دفرنس بتوين ذا كارنت بي بي اي ويتش يو اوف اولدي وركين اون اند واتز هاو از ايت دفرنت هاو از ذا نيو بي بي اي دفرنت فروم ذي كارنت بي بي اي.

Speaker #4: So, what are the operational aspects as well as the financial aspects? Because right now, you have taken a loan, and that loan requires you to pay almost 28 million rials every year until 2043.

Speaker #4: Correct. And once you have a full drawdown, so you are basing it on certain assumptions and the banks are giving you the money. So, you know, $720 million loan is not a small amount.

Speaker #4: And that's going to have a major impact on the company. So we are trying to understand what the impact that's coming up, you know, from the new PPA.

Speaker #4: So how is it different from what's kind of EBITDA difference that you are looking at? What's new capacity? You said there is a new capacity that you have contracted with current new PPA.

Joyce Mathew: What kind of EBITDA difference that you are looking at? What is the new capacity? You said there is a new capacity that you have contracted with the new PPA. What is the new capacity? Could you please explain that? Another question that I had is what are the intended use of proceeds from the new loan of OMR 720 million? You have answered that now you will be paying dividends and you will use it for CapEx. The next question on what are the repayment terms? Could you please explain what are the repayment terms of your new loan that you have taken, and what are the interest rate on these borrowings? Your earlier loan was hedged. Right now, are the interest rates on these new loans are hedged? If yes, at what proportion of the loan is hedged?

Joice Mathew: What kind of EBITDA difference that you are looking at? What is the new capacity? You said there is a new capacity that you have contracted with the new PPA. What is the new capacity? Could you please explain that? Another question that I had is what are the intended use of proceeds from the new loan of OMR 720 million? You have answered that now you will be paying dividends and you will use it for CapEx. The next question on what are the repayment terms? Could you please explain what are the repayment terms of your new loan that you have taken, and what are the interest rate on these borrowings? Your earlier loan was hedged. Right now, are the interest rates on these new loans are hedged? If yes, at what proportion of the loan is hedged?

Speaker #4: So, what's new capacity? Could you please explain that? And you have mentioned that—another question that I had is, what are the intended uses of proceeds from the new loan of 720 million riyals?

Speaker #4: You have answered that you would be paying dividends and you would be using it for CapEx. And the next question is on what are the repayment terms?

Speaker #4: Could you please explain what are the repayment terms of your new loan that you have taken? And what are the interest rates on these borrowings?

Speaker #4: Your earlier loan was hedged. So right now, are the interest rates on these, the new loans, also hedged? If yes, at what proportion of the loan is hedged?

Speaker #4: What is your hedging policy, and what are the effective interest rates during the tenure of the loan where you are hedging these loan amounts? And which currency is the payment for your own agreement?

Joyce Mathew: What is your hedging policy and what are the effective interest rates during the tenure of the loan where you are hedging this loan amount? Which currency is the payment for your on-demand agreement? Because earlier you had a different currency other than Omani rial. The next question is there an existing hedge on these cash flows for the on-demand expenses under the new PPA? The next one is what is the contracted capacity? You mentioned there is a higher capacity that you agreed with the OPWP. What is the new capacity? What was the contracted capacity for the year 2026 when you were operating? Because you started it with the 2,000 megawatt capacity, and there was a gradual degradation of the capacity that you had. What was the contracted capacity that you have as of now?

Joice Mathew: What is your hedging policy and what are the effective interest rates during the tenure of the loan where you are hedging this loan amount? Which currency is the payment for your on-demand agreement? Because earlier you had a different currency other than Omani rial. The next question is there an existing hedge on these cash flows for the on-demand expenses under the new PPA? The next one is what is the contracted capacity? You mentioned there is a higher capacity that you agreed with the OPWP. What is the new capacity? What was the contracted capacity for the year 2026 when you were operating? Because you started it with the 2,000 megawatt capacity, and there was a gradual degradation of the capacity that you had. What was the contracted capacity that you have as of now?

Speaker #4: Because earlier, you had a different currency other than Omani Rial. And the next question is: is there an existing hedge on these cash flows for the O&M expenses?

Speaker #4: اندر ذي كارنت ذي نيو بي بي اي. اند ذي نكست ون از واتز كونتراكتد كاباسيتي. يو منشن ذير از ا هاير كاباسيتي ذات يو هاف اگرید ويت ذي او بي دبليو بي.

Speaker #4: And what’s new capacity? And what was the contracted capacity for the year 2026 when you were operating? Because you started it with the 2,000 megawatt capacity and there was a gradual degradation of the capacity that you had.

Speaker #4: So, what was the contracted capacity that you have as of now? And what's the anticipated drawdown schedule of the remaining loan amount? When—probably you have already announced that there is a dividend of 81 baisa.

Joyce Mathew: What is the intended drawdown schedule of the remaining loan amount when probably you have already announced that there is a dividend of 81 baisa, so that might get drawn down, but when are you planning to draw down the remaining part of the loan amount? What are the annual debt service amount on these loans? My calculations are suggesting somewhere around OMR 28 million. Just wanted to confirm if that is correct. Assuming 100% plant availability, and if you have lender's consent in place, would the company's financial forecast show the ability to continue with the dividend distributions on all the contracted years through 2044? That is another thing that I wanted to know. Another crucial question that I have is, your earlier announcement was to distribute around 81 baisa as special dividend based on 2025 audited financials.

Joice Mathew: What is the intended drawdown schedule of the remaining loan amount when probably you have already announced that there is a dividend of 81 baisa, so that might get drawn down, but when are you planning to draw down the remaining part of the loan amount? What are the annual debt service amount on these loans? My calculations are suggesting somewhere around OMR 28 million. Just wanted to confirm if that is correct. Assuming 100% plant availability, and if you have lender's consent in place, would the company's financial forecast show the ability to continue with the dividend distributions on all the contracted years through 2044? That is another thing that I wanted to know. Another crucial question that I have is, your earlier announcement was to distribute around 81 baisa as special dividend based on 2025 audited financials.

Speaker #4: So, that amount might get drawn down. But when are you planning to draw down the remaining part of the loan amount? And what are the annual debt service amounts on these loans?

Speaker #4: My calculations are suggesting somewhere around 28 million rials. So, I just wanted to confirm if that is correct, and I'm assuming 100 percent plant availability.

Speaker #4: If you have lenders' consent in place, what would the company's financial forecast show? Would the company's financial forecast show the ability to continue with the dividend distributions?

Speaker #4: On all those contracted years through 2024, that's another thing that I wanted to know. Another crucial question that I have is your earlier announcement was to distribute around 81 baisa as a special dividend, based on 2025 audited financials.

Speaker #4: This meant essentially that you were essentially sweeping the entire retained earnings as of December 2025. But now that FSA has asked you to audit two financial statements based on the six-month results of 2026.

Joyce Mathew: This essentially meant that you were essentially sweeping the entire retained earnings as of December 2025. But now that the CMA has asked you to audit the financial statements based on six months results of 2026 and declare dividends based on the June financials. I have noticed that you have around OMR 113 million in retained earnings, which is higher than the December level. So should the shareholders expect a higher dividend other than this is already announced and approved by the board? Will there be any difference? So, will your policy be about 100% sweep of the existing retained earnings, or will you stick to the 81 baisa dividend? The next question is, what is your target EBITDA for 2028? The next one you have already answered, that are CapEx requirements. The plant lifetime extension process also you have mentioned.

Joice Mathew: This essentially meant that you were essentially sweeping the entire retained earnings as of December 2025. But now that the CMA has asked you to audit the financial statements based on six months results of 2026 and declare dividends based on the June financials. I have noticed that you have around OMR 113 million in retained earnings, which is higher than the December level. So should the shareholders expect a higher dividend other than this is already announced and approved by the board? Will there be any difference? So, will your policy be about 100% sweep of the existing retained earnings, or will you stick to the 81 baisa dividend? The next question is, what is your target EBITDA for 2028? The next one you have already answered, that are CapEx requirements. The plant lifetime extension process also you have mentioned.

Speaker #4: And declared dividends based on the June financials. Now, I have noticed that you have around 113 million rials in retained earnings, which is higher than the December level.

Speaker #4: So, should the shareholders expect a higher dividend other than this, as disclosed? This has already been announced and approved by the Board. And will there be any difference?

Speaker #4: So, will your policy be about 100% sweep of the existing retained earnings, or will you stick to the 81 baisa dividend? And the next question is, what's your target EBITDA for 2028?

Speaker #4: And the next one you have already answered. There are CAPEX requirements and the plant lifetime extension process also you have mentioned. And now the company has—another question that I have is, the company has a lower level of retained earnings once you sweep these retained earnings with dividends.

Joyce Mathew: Another question that I have is, the company has a lower level of retained earnings once you sweep this retained earnings with dividends. It will automatically limit your capacity to pay dividend distributions in the future. You have already mentioned earlier to Tahir' question that you are not looking at any difference in the value in use, which causes me to assume that the current PPA terms might be very much similar to the existing terms. So I wanted to check if the management has considered any potential capital reduction plans in the future to enhance shareholder returns. If it is there, and if you have considered it earlier, could you please share the details as to the timing and the extent of potential capital reduction in the future? Also, this one I have already mentioned under the refinancing assumptions.

Joice Mathew: Another question that I have is, the company has a lower level of retained earnings once you sweep this retained earnings with dividends. It will automatically limit your capacity to pay dividend distributions in the future. You have already mentioned earlier to Tahir' question that you are not looking at any difference in the value in use, which causes me to assume that the current PPA terms might be very much similar to the existing terms. So I wanted to check if the management has considered any potential capital reduction plans in the future to enhance shareholder returns. If it is there, and if you have considered it earlier, could you please share the details as to the timing and the extent of potential capital reduction in the future? Also, this one I have already mentioned under the refinancing assumptions.

Speaker #4: And it will automatically limit your capacity to pay dividend distributions in the future. Now, you have already mentioned earlier to Abbas' question that you are not looking at any value in use depreciation.

Speaker #4: And the difference in the value in use, which caused me to assume that there will be some—the current PPA terms might be very much similar to the existing terms.

Speaker #4: So I wanted to check if the management has considered any potential capital reduction plans in the future to enhance shareholder returns. If it is there, and if you have considered it earlier.

Speaker #4: I know you, could you please share the details as to the timing and the extent of potential capital reduction in the future? And also, this one I have already mentioned under the refinancing assumptions.

Speaker #4: Will your code end up being around 28 million annually until 2043? What would be the potential for dividend distribution? So you are committing that there will be a 28 million repayment to the banks.

Joyce Mathew: While you could end up paying around OMR 28 million annually until 2043, what could be the potential for dividend distribution? So you are committing that there will be an OMR 28 million repayment to the banks. So this must be based on certain assumptions, right? My question is, based on the same set of assumptions, how much money would be left out to pay the shareholders after payment of the tax and capital requirements? So these are my questions. If you can answer them, that would be very much highly appreciated. Thank you.

Joice Mathew: While you could end up paying around OMR 28 million annually until 2043, what could be the potential for dividend distribution? So you are committing that there will be an OMR 28 million repayment to the banks. So this must be based on certain assumptions, right? My question is, based on the same set of assumptions, how much money would be left out to pay the shareholders after payment of the tax and capital requirements? So these are my questions. If you can answer them, that would be very much highly appreciated. Thank you.

Speaker #4: So this must be based on certain assumptions, right? So my question is based on the same set of assumptions. How much money would be left out to pay the shareholders after payment of the tax and capital requirements?

Speaker #4: So these are my questions. If you can answer them, that would be very much highly appreciated. Thank you.

Speaker #1: ثانك يو مارك. ثانك يو.

[Company Representative] (Phoenix Power): Thank you, Shamith. Thank you.

Speaker #2: Salam, Smit. Thank you for all the questions. We’ll answer them in a structural way. Me, as regarding—so, first, we’ll start with a loan.

Saeed Faisal: Shamith, thank you for all the questions. We will answer them in a structural way. First, we will start with the loan. As we have disclosed, we have done a refinancing agreement, which is effective from 29 June 2026, and the last repayment of loan is on June 2043. As for the disclosure, we have mentioned that the loan is hedged 95%, which is consistent with what we have now. The terms of the financing is, of course, the most competitive term in the market, which is the normal desktop requirements and these things which are consistent with as compared to our current PPA. The terms and these things are same. This is regarding the loan. Now regarding the repayment of loan, it will be a structured repayment. No cash sweep. Nothing is there.

Syed Faisal: Shamith, thank you for all the questions. We will answer them in a structural way. First, we will start with the loan. As we have disclosed, we have done a refinancing agreement, which is effective from 29 June 2026, and the last repayment of loan is on June 2043. As for the disclosure, we have mentioned that the loan is hedged 95%, which is consistent with what we have now. The terms of the financing is, of course, the most competitive term in the market, which is the normal desktop requirements and these things which are consistent with as compared to our current PPA. The terms and these things are same. This is regarding the loan. Now regarding the repayment of loan, it will be a structured repayment. No cash sweep. Nothing is there.

Speaker #2: Okay, so as we have disclosed, we have done the financing—refinancing agreement—which is effective from 29 June 2026, and the last repayment of the loan is on June 2043.

Speaker #2: And as for the disclosure, we have mentioned that the loan is at 95%. Which is inconsistent with what we have now. The terms of the financing are, of course, the most competitive terms in the market.

Speaker #2: which is the normal desktop requirements. And this thing, which is consistent with— as compared to our current CTA. So the terms and these things are the same.

Speaker #2: So this is regarding the loan. Okay. Now regarding the repayment of the loan, it will be a structural repayment. No cash sweep, nothing is there.

Speaker #2: So, the structure is a straight line kind of motivation of loan. So, we are not expecting any cash sweep. So, to answer your question regarding dividend, there will be—of course, the company has a dividend maximization policy where the company wants to distribute as much dividend as possible.

Saeed Faisal: It is a structured straight line kind of amortization of loan. We are not expecting any cash sweep. To answer your question regarding dividends, of course, company has a dividend maximization policy where company wants to distribute as much dividend as possible. It will be a consistent payout based on this structure. This is regarding the loan. Now regarding PPA, as Shamith has mentioned, that we will be doing a CapEx, which will be from the proceed of the new loan. This will be used for LTE and the enhancement of capacity of the plant. We have disclosed that our plant capacity will be increased post PPA. A very critical thing is the PPA will start from 2029. PPA is not effective from today. We are under the current PPA in 2026, 2027, 2028. The new PPA will start from April 2029.

Syed Faisal: It is a structured straight line kind of amortization of loan. We are not expecting any cash sweep. To answer your question regarding dividends, of course, company has a dividend maximization policy where company wants to distribute as much dividend as possible. It will be a consistent payout based on this structure. This is regarding the loan. Now regarding PPA, as Shamith has mentioned, that we will be doing a CapEx, which will be from the proceed of the new loan. This will be used for LTE and the enhancement of capacity of the plant. We have disclosed that our plant capacity will be increased post PPA. A very critical thing is the PPA will start from 2029. PPA is not effective from today. We are under the current PPA in 2026, 2027, 2028. The new PPA will start from April 2029.

Speaker #2: سو ايت ويل بي ا كنسستنت بيه اوت بيسد اون ديس ستركچر. سو ديس از ريغاردينغ ذا لون. ناو ريغاردينغ بي بي ايه از مستر احمد هاز منشند.

Speaker #2: That will be doing a CapEx, which will be from the proceeds of the new loan. This will be used for LTE and the enhancement of capacity of the plant.

Speaker #2: اند وي هاف ديسكلوزد ذات اور بلانت كپاسيتي ويل بي انكريزد پوس بي بي ايه. بوت ا فيري كريتيكل ثين از ذا بي بي ايه ويل ستارت فروم 2029.

Speaker #2: بي بي ايه از نوت افكتف فروم تودي. سو وي ار اندر ذا كرنت بي بي ايه ان 2026. 7 8. ذا نيو بي بي ايه ويل ستارت فروم اپریل 2029.

Speaker #2: So, as we have disclosed in our disclosure of the enhancement of capacity, that the capacity will be increased in the new PPA.

Saeed Faisal: As we have disclosed in our disclosure of enhancement of capacity, that the capacity will be increased in the new PPA. We will have consistent cash flows based on the existing PPA, based on the existing capacity for the next two to three years. In that case, any enhancement will happen, it will happen at a later year. Regarding the cash flows and this thing, of course, for impairment, Shamith has explained that we believe there is no change in the impairment strategy as compared to last year as of now, we believe. Again, it will be subject to external auditor review and other things will be, of course, disclosed in the audited financials also. We will be disclosing this in the financials, what we have.

Syed Faisal: As we have disclosed in our disclosure of enhancement of capacity, that the capacity will be increased in the new PPA. We will have consistent cash flows based on the existing PPA, based on the existing capacity for the next two to three years. In that case, any enhancement will happen, it will happen at a later year. Regarding the cash flows and this thing, of course, for impairment, Shamith has explained that we believe there is no change in the impairment strategy as compared to last year as of now, we believe. Again, it will be subject to external auditor review and other things will be, of course, disclosed in the audited financials also. We will be disclosing this in the financials, what we have.

Speaker #2: So we'll have a consistent cash flow based on the existing PPA, based on the existing capacity, for the next two to three years.

Speaker #2: So in that case, any enhancement will happen. It will happen at a later year. And regarding the cash flow and listing, of course, for impairment.

Speaker #2: Mr. Ahmed has explained that we believe there is no change in the environment strategy as compared to last year, as if normal to believe.

Speaker #2: But again, it will be subject to external auditor review and other things will be, of course, disclosed in the audited financials. Also, we will be having—we will be disclosing this in the financials.

Speaker #2: What we have... Yes, Saif. Thank you. And just to add to the PPA terms where you asked, does that change? Actually, I can say that the majority of the terms are the same.

Ahmed Al Abri: Yes, Saif. Thank you. Just to add to the PPA terms where you asked if there is a change. Actually, I can say that the majority of the terms are the same. Might be the only thing that has been discussed and negotiated with the PPA is the tariff and also the terms extension of the periods. The majority of the terms are, I can say, or I can explain, it is almost in line with the previous PPA, so there is no major change on it. The currency we are paying the loan is in USD. We took a USD facility and it is based in USD. We are protected under the PPA, the new PPA are same as in the previous PPA. As I mentioned, there is not much change in the terms of the new PPA. Yeah.

Ahmed Al-Abri: Yes, Saif. Thank you. Just to add to the PPA terms where you asked if there is a change. Actually, I can say that the majority of the terms are the same. Might be the only thing that has been discussed and negotiated with the PPA is the tariff and also the terms extension of the periods. The majority of the terms are, I can say, or I can explain, it is almost in line with the previous PPA, so there is no major change on it. The currency we are paying the loan is in USD. We took a USD facility and it is based in USD. We are protected under the PPA, the new PPA are same as in the previous PPA. As I mentioned, there is not much change in the terms of the new PPA. Yeah.

Speaker #2: What has been the only thing that has been discussed and negotiated with the PPA is the tariff, and also the terms—extension of the periods.

Speaker #2: بوت ذا ميجوريتي اوف ذا تيرمز ار اي كان سي اور اي كان سي ان ايت از الموست ست ان لاين ويت ذا بريفيس بي بي ايه.

Speaker #2: سو ذير از نو ميجور چينج اون ايت. اند ذا كارنسي وي ار بيين. ذا لون از ان يو اس تو دوت. سو وي توك ا يو اس تو دوت فاسيليتي.

Speaker #2: اند ايت سبيدز ان يو اس تو دوت. اند وي ار بروتكتد اندر ذا بي بي ايه. ذا نيو بي بي ايه از سيم از ذا بريفيس بي بي ايه.

Speaker #2: So as I mentioned, there is not much change in the terms of the new PPA. Yeah, so also the others' payments are inconsistent with others, with the previous structures.

Ahmed Al Abri: Also the others payment are consistent with others, with the previous structures. There is no change in the loan payments. For long-term service agreement with Siemens also, we are, let's say, currency, the euro. We are retaining the same OEM, Siemens, for the long-term service agreement. The majority contracts in place are consistent with others. We just extended it for the same terms of the new PPA. I can say the same, or I can say there was no much change on the terms. Mr. Mathew, can give you now the mic if you want to comment on this answer. If you have anything you want us to clarify more, I can give you this chance. Mohammed, can you give him the unmute?

Ahmed Al-Abri: Also the others payment are consistent with others, with the previous structures. There is no change in the loan payments. For long-term service agreement with Siemens also, we are, let's say, currency, the euro. We are retaining the same OEM, Siemens, for the long-term service agreement. The majority contracts in place are consistent with others. We just extended it for the same terms of the new PPA. I can say the same, or I can say there was no much change on the terms. Mr. Mathew, can give you now the mic if you want to comment on this answer. If you have anything you want us to clarify more, I can give you this chance. Mohammed, can you give him the unmute?

Speaker #2: So, there is no change in the O&M agreement or long-term service agreement with Siemens. Also, we are the same currency, being denomination in Euro.

Speaker #2: We are returning the same O&M, same for the Long-Term Service Agreement. So, the majority of contracts are in English, or inconsistent with others.

Speaker #2: We just extended for the same terms of the new PPA, with the Kansu—the same, or I can say there is no much change in the terms.

Speaker #2: Smith, you can give you now the mic. If you want to comment on this answer, if you have anything you want to clarify more, you can give you this chance.

Speaker #2: سو محمد كان جيف ان.

Speaker #1: Yes, thank you very much for that. And what’s the interest on this new loan?

Joyce Mathew: Yes. Thank you very much for that. What is the interest on this new loan?

Joice Mathew: Yes. Thank you very much for that. What is the interest on this new loan?

Speaker #2: Actually, as I mentioned, this is also something between us and the banks. But we get a very competitive, you know, interest rate, and it was also hedged—95 percent—as I mentioned.

Ahmed Al Abri: Actually, as I mentioned, this is also something between us and the banks, but we get a very competitive interest rates, and it was also hedged 95%, as Sayed mentioned. We are saying that the same structure has been followed.

Ahmed Al-Abri: Actually, as I mentioned, this is also something between us and the banks, but we get a very competitive interest rates, and it was also hedged 95%, as Sayed mentioned. We are saying that the same structure has been followed.

Speaker #2: So we are seeing that this same structure has been followed.

Speaker #1: So, what's the effective interest rate after the hedge? So, no, I don't want to know what's the exact margin, but what's the effective interest rate?

Joyce Mathew: What is the effective interest rate after the hedging? I do not want to know what is the exact margin, but what is the effective interest rate that you will be paying after the hedging?

Joice Mathew: What is the effective interest rate after the hedging? I do not want to know what is the exact margin, but what is the effective interest rate that you will be paying after the hedging?

Speaker #1: That you will be paying after the HJ.

Speaker #2: Yeah, I think that can range from 5.5% to 6%.

Ahmed Al Abri: Yeah. I think that can range from, give me one second. Yeah. That can range from 5.5% to 6%.

Ahmed Al-Abri: Yeah. I think that can range from, give me one second. Yeah. That can range from 5.5% to 6%.

Speaker #1: Alright. Thanks. And what's the current capacity, contract capacity? And what's the new capacity in the new PPA?

Joyce Mathew: All right. Thanks. What is the current capacity or contracted capacity and what is the new capacity in the new PPA?

Joice Mathew: All right. Thanks. What is the current capacity or contracted capacity and what is the new capacity in the new PPA?

Speaker #2: As we mentioned, and as he also explained to that, I mean that current PPA—there is no change in the capacity of the current PPA.

Ahmed Al Abri: As we mentioned, and Sayed also explained that, the current PPA, there is no change on the capacity of the current PPA. The current PPA is valid till 2029, so there is no change on that. The new PPA will be from 2029 onwards. So we are going to enhance our capacity. As we mentioned, might be we are adding around 5% on the capacity, on the current capacity post-PPA. That will be through upgrading some parts of the machines that will enhance the capacity. However, that will take place only after 2030.

Ahmed Al-Abri: As we mentioned, and Sayed also explained that, the current PPA, there is no change on the capacity of the current PPA. The current PPA is valid till 2029, so there is no change on that. The new PPA will be from 2029 onwards. So we are going to enhance our capacity. As we mentioned, might be we are adding around 5% on the capacity, on the current capacity post-PPA. That will be through upgrading some parts of the machines that will enhance the capacity. However, that will take place only after 2030.

Speaker #2: The current PPA is valid till 2029, so there is no change on that. And the new PPA will be from 2029 onward.

Speaker #2: So, we will want to enhance our capacity. As we mentioned, it might be we'll be adding around 5 percent on the capacity, on the current capacity, post PPA.

Speaker #2: That will be through, I mean, upgrading some parts of the machines. That will enhance the capacity. However, that will take place only after 2030.

Speaker #1: Okay. And what will be the annual debt service amount that you will end up paying under the new financing agreement, after a full drawdown of this loan?

Joyce Mathew: Okay. What will be the annual debt service amount that you will end up paying under the new financing agreements after a full drawdown of this loan?

Joice Mathew: Okay. What will be the annual debt service amount that you will end up paying under the new financing agreements after a full drawdown of this loan?

Speaker #2: So as a normal, this or the SLR rate, actually we have the bank as 1.2, so that has been also inconsistent with the previous rate.

Ahmed Al Abri: As a normal debt service or DSRA rate, actually, we have with the bank is 1.2. That has been also inconsistent with previous rate we had. We agreed with the lenders to continue with the same.

Ahmed Al-Abri: As a normal debt service or DSRA rate, actually, we have with the bank is 1.2. That has been also inconsistent with previous rate we had. We agreed with the lenders to continue with the same.

Speaker #2: We have. So we agreed with the lenders to continue with the same.

Speaker #3: Just to add one thing, we have refinanced the loan from today's date. So, effectively, the loan started from today. The repayment will also start from today.

Saeed Faisal: Just to add one thing. We have refinanced the loan from today's date. Effectively, the loan started from today. The repayment will also start from today because we have repaid to our existing lender and we have entered into the contract with the new lender. The refinancing will start from today, not for 15 years. Practically, you can say 17 years of refinancing instead of 15 years starting from the new PPA. We have paid off the existing lender, and then we have entered into the contract with the new lender, as you are referring to the OMR 720 million, which include the CapEx amount, I think, which we have explained to Tahir that out of this OMR 720, already CapEx is also factored into this.

Syed Faisal: Just to add one thing. We have refinanced the loan from today's date. Effectively, the loan started from today. The repayment will also start from today because we have repaid to our existing lender and we have entered into the contract with the new lender. The refinancing will start from today, not for 15 years. Practically, you can say 17 years of refinancing instead of 15 years starting from the new PPA. We have paid off the existing lender, and then we have entered into the contract with the new lender, as you are referring to the OMR 720 million, which include the CapEx amount, I think, which we have explained to Tahir that out of this OMR 720, already CapEx is also factored into this.

Speaker #3: Because we have repaid to our existing lender, and we have entered into contract with the new lender. So the refinancing will start from today.

Speaker #3: Note for 15 years. Effectively, you can see 17 years of refinancing, instead of 15 years, starting from the new PPA. So, we have paid off the existing lender.

Speaker #3: And then we have entered into contract with the new lender. As you are referring to this, $720 million, which includes the CapEx amount, I think, which we have explained to Abbas.

Speaker #3: That out of this 720 already capex is also factored into this.

Speaker #4: لا، أنا فهمت كويس. نعم، مستر بايشن.

Ahmed Al Abri: Tahir, any further questions? Yes, Mr. Bhushan.

Ahmed Al-Abri: Tahir, any further questions?

Operator: Yes, Mr. Bhushan.

Speaker #1: هاي. گود مارننگ مي اوديبل.

[Analyst]: Hi. Good morning. Am I audible?

[Analyst] (Oman-American Investment Company): Hi. Good morning. Am I audible?

Speaker #2: يس يور.

Speaker #1: Yeah, thank you for the answer so far. I just want to clarify one point regarding the debt service. Just from my calculations, I think the number mentioned is 28 million.

Ahmed Al Abri: Yes.

Ahmed Al-Abri: Yes.

Saeed Faisal: Yes, sure.

Syed Faisal: Yes, sure.

[Analyst]: Thank you for the answers so far. I just wanted to clarify one point. Regarding the debt service, just per my calculations, I think the number mentioned is OMR 28 million. If you can just confirm what that number is. Is it OMR 28 million? Is it OMR 26 million? More so, more importantly, the current debt service is OMR 44 million. The reason I am asking the new debt service is the difference between what you were paying earlier on and what is the current service. Is that what we will get as extra dividend till the current PPA expires? So OMR 44 million minus, let us say, OMR 28 million base case. Is that what we will get till March 2029 in terms of excess dividend? If you could just clarify that.

[Analyst] (Oman-American Investment Company): Thank you for the answers so far. I just wanted to clarify one point. Regarding the debt service, just per my calculations, I think the number mentioned is OMR 28 million. If you can just confirm what that number is. Is it OMR 28 million? Is it OMR 26 million? More so, more importantly, the current debt service is OMR 44 million. The reason I am asking the new debt service is the difference between what you were paying earlier on and what is the current service. Is that what we will get as extra dividend till the current PPA expires? So OMR 44 million minus, let us say, OMR 28 million base case. Is that what we will get till March 2029 in terms of excess dividend? If you could just clarify that.

Speaker #1: If you can just confirm what that number is. Is it 28 million? Is it 26 million? And more, so more importantly, the current debt service is 44 million.

Speaker #1: The reason I am asking, the new debt service—is the difference between what you are paying earlier on and what is the current, you know, service.

Speaker #1: As that, what will get as extra dividend in the current PPA expire. So 44 minus, let's say, 28 base case. You know. Is that what we'll get till March 29 in terms of excess dividend?

Speaker #1: If you can just clarify that.

Speaker #2: اوكي. يور فروم ويتش كمبني.

Saeed Faisal: Okay. You are from which company, Mr. Baksh?

Syed Faisal: Okay. You are from which company, Mr. Baksh?

Speaker #1: I represent a local family office of Nu'man.

[Analyst]: I represent a local family office over here in Oman.

[Analyst] (Oman-American Investment Company): I represent a local family office over here in Oman.

Speaker #2: Okay. So as we have mentioned, we will go for the dividend maximization policy, because whatever capex is required will be drawn down from the bank.

Saeed Faisal: Okay. As we have mentioned that we will go for a dividend maximization policy because whatever CapEx is required will be drawing down from the bank and we will be using this as a CapEx and LTE thing. Ultimately, company will not retain any cash if it is not required for the expansion or anything of the plant. If any extra cash will be distributed as dividend at the end of the day, this is as per our policy. As I mentioned, the loan will be repaid. You are right. The loan will be repaid in 17 years instead of the previous loan where we have to repay this $300 million in 3 years. Now, the extended loan will be repaid up to June 2043.

Syed Faisal: Okay. As we have mentioned that we will go for a dividend maximization policy because whatever CapEx is required will be drawing down from the bank and we will be using this as a CapEx and LTE thing. Ultimately, company will not retain any cash if it is not required for the expansion or anything of the plant. If any extra cash will be distributed as dividend at the end of the day, this is as per our policy. As I mentioned, the loan will be repaid. You are right. The loan will be repaid in 17 years instead of the previous loan where we have to repay this $300 million in 3 years. Now, the extended loan will be repaid up to June 2043.

Speaker #2: And we'll be using this as a CapEx and LTIE, I think. So ultimately, the company will not retain any cash if it is not required for the extension or anything of the plant.

Speaker #2: So if any extra cash will be distributed as dividend at the end of this—this is as per our policy. So, as I mentioned, the loan will be repaid.

Speaker #2: You are right. So the loan will be repaid in 17 years, instead of the previous loan where we had to repay this $300 million in 3 years.

Speaker #2: Now, the extended loan will be repaid up to June 2043. So, in that case, of course, the debt service will go down, which will have a positive cash impact on the company.

Saeed Faisal: In that case, of course, the debt service will go down, which will have a positive cash impact on the company. As Mr. Ahmed has mentioned, this dividend maximum policy will be applied accordingly.

Syed Faisal: In that case, of course, the debt service will go down, which will have a positive cash impact on the company. As Mr. Ahmed has mentioned, this dividend maximum policy will be applied accordingly.

Speaker #2: And as Mr. mentioned, that this dividend maximum policy will be applied accordingly.

Speaker #4: حمد اني فوردر كويس.

[Company Representative] (Phoenix Power): Ahmed, any further questions?

Saeed Faisal: I think we have answered all the questions. We have answered. Mr. Abbas, I think we have answered all 3 questions which you have mentioned on the screen regarding CapEx, I think Mr. Ahmed has mentioned. Regarding the increase of capacity, we have mentioned and disclosed also that there will be an increase in capacity, but post PPA. Regarding the operational assumption, as Mr. Ahmed has mentioned, there will be no change in the operational assumption under the new PPA and the old PPA. It is almost consistent. As you know that most of our money comes from capacity only, the other things are mostly passed through. So Phoenix Power will not be affected mostly from these changes, if any.

Syed Faisal: I think we have answered all the questions. We have answered. Mr. Abbas, I think we have answered all 3 questions which you have mentioned on the screen regarding CapEx, I think Mr. Ahmed has mentioned. Regarding the increase of capacity, we have mentioned and disclosed also that there will be an increase in capacity, but post PPA. Regarding the operational assumption, as Mr. Ahmed has mentioned, there will be no change in the operational assumption under the new PPA and the old PPA. It is almost consistent. As you know that most of our money comes from capacity only, the other things are mostly passed through. So Phoenix Power will not be affected mostly from these changes, if any.

Speaker #2: And Mr. Abbas, I think we have answered all three questions, which you have mentioned on screen regarding capex. I think Mr. Ahmed has mentioned.

Speaker #2: Regarding the increase of capacity, we have mentioned and disclosed also that there will be an increase in capacity, but mostly by PPA. And regarding the operational assumption...

Speaker #2: As Mr. Ahmed has mentioned, there will be no change in the operational assumption under the new PPA and the old PPA.

Speaker #2: So, the most consistent. And as you know, most of our money comes from capacity only. The other thing is mostly pass-through. So, PPC will not be affected.

Speaker #2: Mostly from these changes, if any.

Speaker #4: مستر نعمان ميوت عباس.

[Company Representative] (Phoenix Power): Okay. You can unmute, Tahir. Yes?

Speaker #1: Mohammed, can you please not mute me again until Ahmed and I have had a chat? Because this is extremely frustrating as an investor, you know, to get muted when you know.

[Company Representative] (U Capital): Mohammed, can you please not mute me again until Ahmed and I have had a chat? It is extremely frustrating as an investor to get muted when I do not have a chance of follow-up. Please do not mute me again until Ahmed and I have had a chat, please. I appreciate it. Ahmed, thank you very much. Just a couple of questions to follow up. Your existing capacity charges, your existing debt service is $44 million as per the new debt service. I understand, I have been tracking this sector from 2008, so I am quite aware of the sector.

Abbas Ali: Mohammed, can you please not mute me again until Ahmed and I have had a chat? It is extremely frustrating as an investor to get muted when I do not have a chance of follow-up. Please do not mute me again until Ahmed and I have had a chat, please. I appreciate it. Ahmed, thank you very much. Just a couple of questions to follow up. Your existing capacity charges, your existing debt service is $44 million as per the new debt service. I understand, I have been tracking this sector from 2008, so I am quite aware of the sector.

Speaker #1: I don't have a chance of follow-up, so please do not mute me again until Ahmed and I have had a chat. Please, I appreciate it.

Speaker #1: Ahmed, thank you very much. Just a couple of questions—follow-up. Now, your existing capacity charge, as you know, your existing debt service is $44 million.

Speaker #1: As per the new data service, and I understand, I have been tracking this sector from 2008, so I am quite aware of the sector, your activities.

Speaker #1: If you look at the dividend maximization policy, what I’m looking at is effectively the 6 pieces that you're making from the current BBA.

[Company Representative] (U Capital): If you look at the dividend maximization policy, what I am looking at is effectively the 6 baisa that you are making from the current PPA as per the old debt service, then there is an additional 10 baisa impact from the new debt service because you are going to save this because there is a new debt that is going to be repaid over 18 years instead of the existing debt that was going to be repaid over the term of this PPA. For the next 3 years, effectively, I am expecting you guys to make 16 baisa per year. Given that your comment is that 16 baisa should be able to be distributed to investors. What I am not able to understand is, we are not discussing anything in the non-public space, so I do not understand why there is so much hesitation to declare numbers that are already in the public domain.

Abbas Ali: If you look at the dividend maximization policy, what I am looking at is effectively the 6 baisa that you are making from the current PPA as per the old debt service, then there is an additional 10 baisa impact from the new debt service because you are going to save this because there is a new debt that is going to be repaid over 18 years instead of the existing debt that was going to be repaid over the term of this PPA. For the next 3 years, effectively, I am expecting you guys to make 16 baisa per year. Given that your comment is that 16 baisa should be able to be distributed to investors. What I am not able to understand is, we are not discussing anything in the non-public space, so I do not understand why there is so much hesitation to declare numbers that are already in the public domain.

Speaker #1: As per the old debt service, and then there’s an additional 10 basis points impact from the new debt service, because you are going to save this.

Speaker #1: Because there's a new date that's going to be re-pegged over 18 years, instead of the existing date that was going to be re-pegged over the term of this PPA.

Speaker #1: So for the next three years, effectively, I am expecting you guys to make 16 baisa per year. And given that, your comment is that 16 baisa should be able to be distributed to investors.

Speaker #1: Because, you know, what I'm not able to understand is—you know, we're not discussing anything in the non-public space. So I don't understand why there's so much hesitation to declare numbers that are already in the public domain.

Speaker #1: Well, we are asking for clarification from investors. You know, we have significant shareholding from minorities. You know, and at some—yes. Please.

[Company Representative] (U Capital): All we are asking for is clarification as investors. We have significant shareholding as minorities.

Abbas Ali: All we are asking for is clarification as investors. We have significant shareholding as minorities.

Saeed Faisal: Abbas?

Syed Faisal: Abbas?

[Company Representative] (U Capital): Yes, please.

Abbas Ali: Yes, please.

Speaker #2: Just to clarify one thing, we are not hesitant to answer the question. But sometimes, you know, we cannot. I mean, give you what is—

Saeed Faisal: Just to clarify one thing here. We are not hesitating to answer the question. But sometimes, we cannot have it now, okay? You have done some analysis on your side. I cannot say that your analysis is right or wrong. So what we are having here, we are disclosing. Our policy, as mentioned previously, whatever cash we are having, we are not expanding. We are not a company that we are going to expand. So whatever we have as cash that left us, which is not required in the business normal, we are going to distribute. Of course, that will depend on the approval we seek from the board and the regulations. But our policy, as we mentioned, is to maximize the outrage. So whatever we have as a cash for the shareholder, that will be distributed. This is one thing.

Ahmed Al-Abri: Just to clarify one thing here. We are not hesitating to answer the question. But sometimes, we cannot have it now, okay? You have done some analysis on your side. I cannot say that your analysis is right or wrong. So what we are having here, we are disclosing. Our policy, as mentioned previously, whatever cash we are having, we are not expanding. We are not a company that we are going to expand. So whatever we have as cash that left us, which is not required in the business normal, we are going to distribute. Of course, that will depend on the approval we seek from the board and the regulations. But our policy, as we mentioned, is to maximize the outrage. So whatever we have as a cash for the shareholder, that will be distributed. This is one thing.

Speaker #2: I mean, we cannot have it now. Okay. You have done some analysis on your site. I cannot see that your analysis is right or wrong.

Speaker #2: So, what we are having here, we are disclosing. So, our policy is as mentioned previously. Whatever cash we are having, we are not expanding.

Speaker #2: We are not a company that we are going to expand. So whatever we have is cash that is left off, which is not required in the business normally.

Speaker #2: We are going to distribute, of course. I mean, that will depend on the approval we see from the board and the regulations. But our policy, as we mentioned, is to maximize the out ratio.

Speaker #2: So what offer we have is a cash for the shareholder that will be distributed. So, this is one thing. You might do some analysis.

Speaker #2: Another company do another analysis. We are not doing here in the future's analysis. We are what we are having. We disclose.

Saeed Faisal: You might do some analysis, another company does another analysis. We are not doing here as a future analysis. What we are having, we disclose.

Ahmed Al-Abri: You might do some analysis, another company does another analysis. We are not doing here as a future analysis. What we are having, we disclose.

Speaker #1: Okay. Now, let me discuss when you mentioned, I think charges are pass-through. But for the last two years, I'm seeing that the revenue that you make from energy is higher than the gas consumption expense that you pay.

[Company Representative] (U Capital): Okay. Now tell me this. When you mentioned that energy charges are a pass-through, but for the last 2 years, I am seeing that the revenue that you make from energy is higher than the gas consumption expense that you pay. Now, that is an addition over and above the PPA. That number was OMR 5 million last year, which effectively means 3 baisa in extra dividend. So it is not a straight pass-through, right? I would imagine that there is an upside to some of these charges. The same question I had for the O&M expenses, because you mentioned that your load factor for the H1 has come down because there are renewables coming in and the power demand is being spread across different power plants as well.

Abbas Ali: Okay. Now tell me this. When you mentioned that energy charges are a pass-through, but for the last 2 years, I am seeing that the revenue that you make from energy is higher than the gas consumption expense that you pay. Now, that is an addition over and above the PPA. That number was OMR 5 million last year, which effectively means 3 baisa in extra dividend. So it is not a straight pass-through, right? I would imagine that there is an upside to some of these charges. The same question I had for the O&M expenses, because you mentioned that your load factor for the H1 has come down because there are renewables coming in and the power demand is being spread across different power plants as well.

Speaker #1: Now, that is an addition over and above the BBA. Now, that number was 5 million riyals last year, which effectively means 3 baiza in extra dividend.

Speaker #1: So it's not a straight pass-through, right? I would imagine that there's an offset to some of these charges. The same question I had for the O&M expenses.

Speaker #1: Because you mentioned that your load factor for the first half has come down because there's renewables coming in, and the power demand is being spread across.

Speaker #1: You know, different power plants as well. So, what my question is, based on my understanding of a PPA contract, where everything is a pass-through.

[Company Representative] (U Capital): So what my question is, based on my understanding of a PPA contract where everything is a pass-through, but when I see your numbers, your notes, and I see there is a OMR 5 million additional sort of revenue that you make or the net revenue that you make just from energy charges alone, because your revenue is OMR 5 million higher than your expense. These are upside to the PPA, right? Assuming that the plant is working in an efficient manner, your gas consumption, your heat rate, because there are a lot of technical aspects to these plants, right? But there is potential for upside. Is my understanding correct? What that number will be, we will discuss it later as and when the PPA gets renewed. But what I am seeing is, I am seeing your historicals and I am seeing an upside. I just wanted to clarify that.

Abbas Ali: So what my question is, based on my understanding of a PPA contract where everything is a pass-through, but when I see your numbers, your notes, and I see there is a OMR 5 million additional sort of revenue that you make or the net revenue that you make just from energy charges alone, because your revenue is OMR 5 million higher than your expense. These are upside to the PPA, right? Assuming that the plant is working in an efficient manner, your gas consumption, your heat rate, because there are a lot of technical aspects to these plants, right? But there is potential for upside. Is my understanding correct? What that number will be, we will discuss it later as and when the PPA gets renewed. But what I am seeing is, I am seeing your historicals and I am seeing an upside. I just wanted to clarify that.

Speaker #1: But when I see your numbers, your notes, and I see there's a $5 million additional source of revenue that you make, or net revenue that you make.

Speaker #1: Just from energy charges alone, you know, because your revenue is $5 million higher than your expense. So these are offset to the PPA.

Speaker #1: Right. Assuming that the plant is working in an inefficient manner—you know, your gas consumption, your heat rate—you know, because there are a lot of technical aspects to these plants.

Speaker #1: Right. But there is potential for upside. As my understanding, correct. What that number will be, we'll discuss it later, as and when the PPA gets renewed.

Speaker #1: But what I'm saying is, I'm saying your historicals and I'm saying on offside, so I just want to clarify that.

Speaker #2: Okay. So it requires a bit of detailed exploration. So, overall, your concept is correct. That plant is running in an efficient way. There might be some upside.

Saeed Faisal: Okay. It requires a bit detailed explanation. Overall, your concept is correct, that if plant is running in an efficient way, there might be some upside, but it is not up to the magnitude of OMR 5 million. This is one thing. Because energy charge include our fuel charges, but we are having for gas. This is also revenue. Plus it includes the variable energy charges, which is EED also. EED is not a very apple-to-apple comparison if you are taking energy charges and letting off with the fuel charges from cost side, because fuel charges in the cost side only have gas payments. The other impact of variable comes in O&M cost, which is, again, which is in the different line item.

Syed Faisal: Okay. It requires a bit detailed explanation. Overall, your concept is correct, that if plant is running in an efficient way, there might be some upside, but it is not up to the magnitude of OMR 5 million. This is one thing. Because energy charge include our fuel charges, but we are having for gas. This is also revenue. Plus it includes the variable energy charges, which is EED also. EED is not a very apple-to-apple comparison if you are taking energy charges and letting off with the fuel charges from cost side, because fuel charges in the cost side only have gas payments. The other impact of variable comes in O&M cost, which is, again, which is in the different line item.

Speaker #2: But it is not up to the magnitude of 5 million riyal. This is one thing. Because energy charge includes our fuel charges. But we are hoping for gas.

Speaker #2: دس از اوفر ريفنيو. پلس انکلوڈز. اٹ انکلوڈز ا ویری ایبل انرجی چارجز. وچ از ای ڈی او. سو ای ڈی. اٹس نوت ا ویری اپل ٹو اپل کمپیریزن.

Speaker #2: If you are taking energy charges and at the end of it, with a fuel charge from cost side, because fuel charges on the cost side only have gas payments.

Speaker #2: . سو دا ادر امپیکٹ اف ویری ایبل کمز ان او این ایم کاسٹ. وچ از اگین. وچ از ان دا ڈفرنٹ لائن ائٹم. سو دیر از ا پوتنشل افسايد.

Speaker #2: And there is an upside if the plant is new, running in a very efficient way, and maintained in a very good way. But again, it is not up to the magnitude of 5 million riyal per year.

Saeed Faisal: There is a potential upside and there is a upside if the plant is new, running in a very efficient way and maintained in a very good way. But again, it is not up to the magnitude of OMR 5 million per year. Overall, yes, your understanding is correct. This is-

Syed Faisal: There is a potential upside and there is a upside if the plant is new, running in a very efficient way and maintained in a very good way. But again, it is not up to the magnitude of OMR 5 million per year. Overall, yes, your understanding is correct. This is-

Speaker #2: So, overall, yes, your understanding is correct. This is.

Speaker #1: Yeah. Just to add, I mean, of course, I mean, we are doing it. Of course, I mean, for maintenance and operation of the plant, we try to enhance our efficiency.

Ahmed Al Abri: Yeah, just to add, of course, we are going to for maintenance and operation of the plant, we try to enhance our efficiency. As Vincent said, there is some bark on that because of the efficiency we have worked in the past years to raise the efficiency of machines. But I cannot imagine that will be reached to OMR 5 million. Plus also our maintenance regime depends on the running hours. Sometimes, because you do not control it, you plan an outage in certain years that might be cost you some amount. However, because that is linked to the running hours or the dispatch, that might be having some impact on that as well.

Ahmed Al-Abri: Yeah, just to add, of course, we are going to for maintenance and operation of the plant, we try to enhance our efficiency. As Vincent said, there is some bark on that because of the efficiency we have worked in the past years to raise the efficiency of machines. But I cannot imagine that will be reached to OMR 5 million. Plus also our maintenance regime depends on the running hours. Sometimes, because you do not control it, you plan an outage in certain years that might be cost you some amount. However, because that is linked to the running hours or the dispatch, that might be having some impact on that as well.

Speaker #1: As mentioned, sir, there is some variance in because of the efficiency. We have worked in the past years to raise the efficiency of machines.

Speaker #1: But I cannot imagine that will be reached to 5 million. Plus also our maintenance regime, you know, depends on the running hours.

Speaker #1: So sometimes, because you don’t control it. You plan an outage in certain years. That might cost you some amount. But however...

Speaker #1: Because that links to the running hours, or the dispatch, so that might be some impact in that as well.

Speaker #2: Okay. My next question is, we are sitting now in August, and by September end—before September 30—this 81 baisa should be in the hands of shareholders.

[Company Representative] (U Capital): Okay. My next question is, we are sitting now in August, and by September end, before 30 September, this 81 baisa should be in the hand of shareholders based on the external audit timeline that you have, because that is a direct engagement, right? That 81 baisa should be in the. Assuming there is no negative audit opinion, that should come in the hand of the shareholders by September end. As a follow-up, for the remaining term of the current PPA, which is till March 2029, effectively you have 3 years. Now whatever that number is, 16 baisa, 15 baisa, 17 baisa, depending on our analysis and what others have done, that effectively should come in each year. Let us say, in the calendar year 2027, we should get the numbers that we make for 2026. 2028 we will get for 2027, and 2029 we will get for 2028.

Abbas Ali: Okay. My next question is, we are sitting now in August, and by September end, before 30 September, this 81 baisa should be in the hand of shareholders based on the external audit timeline that you have, because that is a direct engagement, right? That 81 baisa should be in the. Assuming there is no negative audit opinion, that should come in the hand of the shareholders by September end. As a follow-up, for the remaining term of the current PPA, which is till March 2029, effectively you have 3 years. Now whatever that number is, 16 baisa, 15 baisa, 17 baisa, depending on our analysis and what others have done, that effectively should come in each year. Let us say, in the calendar year 2027, we should get the numbers that we make for 2026. 2028 we will get for 2027, and 2029 we will get for 2028.

Speaker #2: Based on the external audit timeline that you have, because that is a direct engagement, right? So that 81 basis should be in the...

Speaker #2: Assuming there is no negative audit opinion, that should come in the hands of the shareholders by September end, and as a follow-up for the remaining term of the current PPA.

Speaker #2: Which is still March 2029, effectively. You have three years now, whatever that number is—16 Baisa, 15 Baisa, 17 Baisa—depending on our analysis.

Speaker #2: And you know, what others have done, that effectively should come in each year. So let's see, in the calendar year 2027, you know, we should get the number that we make for 2026.

Speaker #2: 28. We'll get for 27. And 29. We'll get for 28. So effectively, what I'm looking at, it is 16 to 17 baisa every year for the next three years.

[Company Representative] (U Capital): Effectively what I am looking at it is 16 to 17 baisa every year for the next 3 years. Then the new PPA comes in, which we are not sure about the tariff yet. We have made some analysis based on what we understand based on the value in use that you did not have to take an impairment versus the others. I am hoping when the external auditors write about this, because in Sembcorp's case, they have actually declared the actual capacity charges for the new. You should see the notes of Sembcorp Salalah, I think. Then what happens is, as minority investors, we have the same information as the majority, because tomorrow, for example, if let us say one of your majority investors decides to come and sell in the market, they have more information than us, right? Because this plant is not like a Bank Muscat.

Abbas Ali: Effectively what I am looking at it is 16 to 17 baisa every year for the next 3 years. Then the new PPA comes in, which we are not sure about the tariff yet. We have made some analysis based on what we understand based on the value in use that you did not have to take an impairment versus the others. I am hoping when the external auditors write about this, because in Sembcorp's case, they have actually declared the actual capacity charges for the new. You should see the notes of Sembcorp Salalah, I think. Then what happens is, as minority investors, we have the same information as the majority, because tomorrow, for example, if let us say one of your majority investors decides to come and sell in the market, they have more information than us, right? Because this plant is not like a Bank Muscat.

Speaker #2: Then the new PPA comes in, which we are not sure about the tariff yet. You know, we have made some—you know.

Speaker #2: Analysis based on, you know, what we understand, based on the value in use, that you did not have to take an impairment versus the others.

Speaker #2: And I'm hoping when the external auditors write about this, because in same CAPs case, they have actually declared the actual capacity charges for the new...

Speaker #2: You know, you should see the Notice of Same Copies, something like that, I think. So then, what happens is, as minority investors, we have the same information.

Speaker #2: As are the majority, because tomorrow, for example, if, let's say, one of your majority investors decides to come and sell in the market, they have more information than us.

Speaker #2: Right. Because this plant is not like a bank, Mister. It is not going to exist forever. It has a finite term. So then, there is no lock-in.

[Company Representative] (U Capital): It is not going to exist forever. It has a finite term. There is no lock-in when it comes to the majority investors, your promoters. Tomorrow, if your promoter decides to come and sell the share in the market, he has more information than I have as a minority. That is the reason if you notice the tone of the call and some of the frustration expressed by the analyst community, it is not personal. The idea is that, guys give us the same information that your majority has access to because tomorrow your majority has the option of coming and selling in the market, and they have more information than I have as a minority. That is the reason a lot of the questions are trying to ascertain, are trying to figure out what the new dividends will be.

Abbas Ali: It is not going to exist forever. It has a finite term. There is no lock-in when it comes to the majority investors, your promoters. Tomorrow, if your promoter decides to come and sell the share in the market, he has more information than I have as a minority. That is the reason if you notice the tone of the call and some of the frustration expressed by the analyst community, it is not personal. The idea is that, guys give us the same information that your majority has access to because tomorrow your majority has the option of coming and selling in the market, and they have more information than I have as a minority. That is the reason a lot of the questions are trying to ascertain, are trying to figure out what the new dividends will be.

Speaker #2: When it comes to the majority investors, your promoters, not tomorrow. If your promoter decides to come and sell the share in the market, he has more information.

Speaker #2: Dean, I have it as a minority and that's the reason. If you notice the tone of the call and some of the frustration expressed by the analyst community.

Speaker #2: It's not personal. The idea is that guys give us the same information that your majority has access to. Because tomorrow, your majority has the option of coming and selling in the market.

Speaker #2: And they have more information than I have as a minority. And that's the reason. A lot of the questions are trying to ascertain, are trying to figure out.

Speaker #2: What the new dividends will be, because it’s a power company, it's a utility company. There is no analysis of future growth. I am effectively in a contracted business model.

[Company Representative] (U Capital): Because as a power company, as a utility company, there is no analysis of future growth. I am effectively in a contracted business model. After 15 years, maybe I can make an assumption that the plant will work for another 9 years. Maybe it will not. The point is, that is very important for me to analyze the company because every day that the stock trades in the market, I have to decide should I buy, sell or hold? That decision is based not on sentiment like it is with, let us say a Bank Muscat. In this case, it is simple math when it comes to your contract. I just wanted to give you some context into why Joyce Mathew, me, and everyone else on the call is so adamantly asking you about the terms so you can appreciate where they are coming from.

Abbas Ali: Because as a power company, as a utility company, there is no analysis of future growth. I am effectively in a contracted business model. After 15 years, maybe I can make an assumption that the plant will work for another 9 years. Maybe it will not. The point is, that is very important for me to analyze the company because every day that the stock trades in the market, I have to decide should I buy, sell or hold? That decision is based not on sentiment like it is with, let us say a Bank Muscat. In this case, it is simple math when it comes to your contract. I just wanted to give you some context into why Joyce Mathew, me, and everyone else on the call is so adamantly asking you about the terms so you can appreciate where they are coming from.

Speaker #2: After 15 years, maybe I can make an assumption that the plant will work for another nine years. Maybe it will not, but the point is...

Speaker #2: That is very important for me to analyze the company, because every day that the stock trades in the market, I have to decide—should I buy, sell, or hold?

Speaker #2: And that decision is based not on sentiment. Like, with, let's say, a bank, mister. In this case, it's simple math when it comes to...

Speaker #2: Your contract. And that’s, I just want to give you some context into why Josh, me, and everyone else on the call is so adamantly astute about.

Speaker #2: You know, the term, so you can appreciate where we are coming from, you know. It's not just to ask more information or get something.

Speaker #2: You know, that's—you don't want to give. But for us, when we buy and sell shares, and we advise our clients, and we manage portfolios.

[Company Representative] (U Capital): It's not just to ask more information or get something that you don't want to give. But for us, when we buy and sell shares and we advise our clients and we manage portfolios, we need to have access to the same information that say that some of the majorities have because tomorrow there is no law that is stopping them from selling.

Abbas Ali: It's not just to ask more information or get something that you don't want to give. But for us, when we buy and sell shares and we advise our clients and we manage portfolios, we need to have access to the same information that say that some of the majorities have because tomorrow there is no law that is stopping them from selling.

Speaker #2: We need to have access to the same information. Let's say, that's something the majorities have, because tomorrow, there is no law that's stopping them from selling.

Speaker #2: یا.

Speaker #1: We need to make up our minds to see how it makes sense.

Ahmed Al Abri: Yeah.

Ahmed Al-Abri: Yeah.

[Company Representative] (U Capital): We need to make up our minds to see how it makes sense.

Abbas Ali: We need to make up our minds to see how it makes sense.

Speaker #2: Yeah, just answer to your question or to these comments, actually. Whatever we give is, we disclose to the majority. And the majority as well.

Ahmed Al Abri: Yeah, just answer to your question. To this comment, actually, whatever we give is we disclose to the majority and the minority as well. So we are following the regulations that set by the Authority for Public Services Regulation. We are asked for any material disclosure, we disclose in the market. So we keep following this, not just for you, but also for the other investments. So if there's any major or material information that will be disclosed in the market. For this presentation, I understand.

Ahmed Al-Abri: Yeah, just answer to your question. To this comment, actually, whatever we give is we disclose to the majority and the minority as well. So we are following the regulations that set by the Authority for Public Services Regulation. We are asked for any material disclosure, we disclose in the market. So we keep following this, not just for you, but also for the other investments. So if there's any major or material information that will be disclosed in the market. For this presentation, I understand.

Speaker #2: So we are following the regulations that are set by the Authority, and we are not asking for any, I mean, material disclosure. We disclose in the market.

Speaker #2: So we are keeping following this, not just for you, but also for the other investments. So if there is any major or material information—

Speaker #2: That will be disclosed in the market for these discussions, okay? And whatever the dividend timeline that I discussed, 81 baisa is coming in by September end.

[Company Representative] (U Capital): Okay. What about the dividend timeline that I discussed, 81 baisa coming in by September end, inshallah, if everything goes well?

Abbas Ali: Okay. What about the dividend timeline that I discussed, 81 baisa coming in by September end, inshallah, if everything goes well?

Speaker #2: Inshallah, if everything goes well—yeah, actually, we proposed early to be distributed, but, however, our requirement from the authority is to do the audit.

Ahmed Al Abri: Yeah. Actually, we proposed earlier to be distributed, but however, there was a requirement from the Authority for Public Services Regulation to do their audit for the 6 months. Once that has been completed, of course, I cannot say it will be complete in X date, but once that has been completed, or if the things has been, goes smoothly and there is nothing, we are also counting the requirement deadline for each event. If that has been done as we have set the deadline, we expect the OGM will be held on end of September or 1st of October. That will be the cutoff date for the dividends.

Ahmed Al-Abri: Yeah. Actually, we proposed earlier to be distributed, but however, there was a requirement from the Authority for Public Services Regulation to do their audit for the 6 months. Once that has been completed, of course, I cannot say it will be complete in X date, but once that has been completed, or if the things has been, goes smoothly and there is nothing, we are also counting the requirement deadline for each event. If that has been done as we have set the deadline, we expect the OGM will be held on end of September or 1st of October. That will be the cutoff date for the dividends.

Speaker #2: For the six months. So once that has been completed, of course, I mean, I cannot say it will be complete in the next date.

Speaker #2: But once that has been completed, or if things have gone smoothly and there is no issue, we are—I mean, also counting the requirement deadline.

Speaker #2: For H. A. I. Main event, so if that has been done, as we have, you know, set the deadline, we expect the OGM.

Speaker #2: Will be held on end of September and first of October. So that will be the cut-off date for the dividends, okay? And then...

Speaker #2: I'll still be getting three years of dividend, as for the old PPA, right? And my analysis, forget the number, but my logic about the savings.

[Company Representative] (U Capital): Okay. I will still be getting 3 years of dividend as for the old PPA, right? My analysis, forget the number, but my logic about the savings in debt service is correct. That is the way to look at it.

Abbas Ali: Okay. I will still be getting 3 years of dividend as for the old PPA, right? My analysis, forget the number, but my logic about the savings in debt service is correct. That is the way to look at it.

Speaker #2: This date service is correct. That's the way to look at it. Yeah.

Speaker #1: As we mentioned, we are not here to give any future, you know, perspectives or any future announcements. So, we are requested to—I mean...

Ahmed Al Abri: Yeah. As we mentioned, we are not here to give any future perspectives or any future announcements. We are requested to present the result for the 6 months, and we are not in a position, as I mentioned, to give anything else. As disclaimer, we have at the beginning of the presentations, this should not be counting us to call for any investment or might be a suggestion for purchasing issues. We stick on providing the information as it is and whatever we have as of now.

Ahmed Al-Abri: Yeah. As we mentioned, we are not here to give any future perspectives or any future announcements. We are requested to present the result for the 6 months, and we are not in a position, as I mentioned, to give anything else. As disclaimer, we have at the beginning of the presentations, this should not be counting us to call for any investment or might be a suggestion for purchasing issues. We stick on providing the information as it is and whatever we have as of now.

Speaker #1: Present the result for the six months. And we are not in a position, as I mentioned, to give anything else, as I scream presentations.

Speaker #1: This should not be, I mean, counting as to, you know, call for any investment. Or might be a suggestion for purchasing issues. So, we stick in.

Speaker #1: Providing the information as it is, and whatever we have as of now.

Speaker #2: Okay. And the three years dividend part, that you can confirm, right? As for the current PPA, forget the 81 Baisa. We’re still eligible for another three years of dividends.

[Company Representative] (U Capital): Okay. The 3 years dividend part, that you can confirm, right? As for the current PPA, forget the 81 baisa, we are still eligible for another 3 years of dividend.

Abbas Ali: Okay. The 3 years dividend part, that you can confirm, right? As for the current PPA, forget the 81 baisa, we are still eligible for another 3 years of dividend.

Speaker #1: As we mentioned in the past, and we mention now and every time, so whatever we have will be distributed to the shareholders. We are not keeping the cash in the company.

Ahmed Al Abri: As we mentioned in the past, and we mention now and every time. Whatever we have, we will distribute it to the shareholder. We are not keeping the cash in the company. Our policy is to maximize our

Ahmed Al-Abri: As we mentioned in the past, and we mention now and every time. Whatever we have, we will distribute it to the shareholder. We are not keeping the cash in the company. Our policy is to maximize our

Speaker #1: And our policy is to maximize. And...

Speaker #2: Okay. Thank you. Good luck. Thank you.

[Company Representative] (U Capital): Okay. Thank you. Good luck. Thank you.

Abbas Ali: Okay. Thank you. Good luck. Thank you.

Ahmed Al Abri: Thank you.

Ahmed Al-Abri: Thank you.

Speaker #3: اینی کویسچنز، محمد؟

[Company Representative] (Phoenix Power): Any questions, Mohammed?

Speaker #2: Right. Thank you. But you haven't mentioned about two of my questions. One is on the 81% payout dividend. That was assumed to be sweeping the entire retained earnings.

Joyce Mathew: All right. Thank you. You haven't mentioned about two of my questions. One is on the 81 baisa dividend that was assumed to be sweeping the entire retained earnings. Will you be considering adding the additional six months profit into the retained earnings? Will that be considered for dividend distribution?

Joice Mathew: All right. Thank you. You haven't mentioned about two of my questions. One is on the 81 baisa dividend that was assumed to be sweeping the entire retained earnings. Will you be considering adding the additional six months profit into the retained earnings? Will that be considered for dividend distribution?

Speaker #2: So will you be considering adding the additional six months' profit into the retained earnings? Will that be considered for dividend distribution? Because you have already mentioned that there is—you have a policy of shareholder retain.

Ahmed Al Abri: Oh.

Ahmed Al-Abri: Oh.

Joyce Mathew: Because you have already mentioned that you have a policy of shareholder return-

Joice Mathew: Because you have already mentioned that you have a policy of shareholder return-

Speaker #1: Just to that answer to that, I mean, has not been yet considered. And as I mentioned, might be as of now. What we have is...

Ahmed Al Abri: Yeah.

Ahmed Al-Abri: Yeah.

Joyce Mathew: -maximizes, and-

Joice Mathew: -maximizes, and-

Ahmed Al Abri: Actually, just so that the answer to that, has not been yet considered. As I mentioned, might be, as of now, what we have is we propose only 81 baisa. That will be left to the board of director later on if they want to decide it, and of course, the Authority if they accept it. So that is, from the company perspective, has not been considered.

Ahmed Al-Abri: Actually, just so that the answer to that, has not been yet considered. As I mentioned, might be, as of now, what we have is we propose only 81 baisa. That will be left to the board of director later on if they want to decide it, and of course, the Authority if they accept it. So that is, from the company perspective, has not been considered.

Speaker #1: We propose only 81 baisas. That will be left to the, I mean, Board of Directors later on, if they want to decide it, and of course, the authority.

Speaker #1: I've accepted it. So that is from the company perspective. He's not been considered.

Speaker #2: Okay. And in the future, beyond 2029, since your debt service will be somewhere around $25 million plus, and your retained earnings will be very limited for distribution of cash.

Joyce Mathew: Okay. In the future, beyond 2029, since your debt service will be somewhere around OMR 25 million plus and your retained earnings will be very limited for distribution of cash, have you ever considered about anything like a potential capital reduction or something like that?

Joice Mathew: Okay. In the future, beyond 2029, since your debt service will be somewhere around OMR 25 million plus and your retained earnings will be very limited for distribution of cash, have you ever considered about anything like a potential capital reduction or something like that?

Speaker #2: Have you ever considered anything like a capital, potential capital reduction, or something like that?

Speaker #1: No, as of now, there is no consideration for that, as of now. So, we expect that the dividends will be distributed over the period till the end of the new PPA.

Ahmed Al Abri: No. As of now, there is no consideration for that. So we expect that the dividends will be distributed over the period till the end of the new PPA. So we have not considered, as of now, any equity reduction.

Ahmed Al-Abri: No. As of now, there is no consideration for that. So we expect that the dividends will be distributed over the period till the end of the new PPA. So we have not considered, as of now, any equity reduction.

Speaker #1: So we haven't considered any, as of now, any equity redemption.

Speaker #2: Alright. That's it from my side. Thank you. Thank you for your answers.

Joyce Mathew: All right. That is it from my side. Thank you. Thank you for your answers.

Joice Mathew: All right. That is it from my side. Thank you. Thank you for your answers.

Speaker #3: Thank you. Thank you once again for joining us today. We appreciate your participation and your valuable questions. This presentation will be available in MSX.

[Company Representative] (Phoenix Power): Thank you. Thank you once again for joining us today. We appreciate your participation and your valuable questions. This presentation will be available on Muscat Stock Exchange website for your reference. We wish you a pleasant day. Thank you all.

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Q2 2026 Phoenix Power Co SAOG Earnings Call

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