Half Year 2026 Oman Chlorine SAOG Earnings Call
Bader Mohammed Al Yahyai: Okay. Assalamualaikum. Good morning, everyone. Is the voice clear? This is our presentation for H1 2026. We will go through the agenda. We will take you on an overview about Oman Chlorine if you are new investors. Then we will highlight on the major shareholders. We will talk about our product and capacity. We will give an overview about our subsidiaries in UAE and Qatar, including the shareholders' representatives. After that, we will take you through the financial performance, and then we will end up with Q&A. Oman Chlorine was established in 1997 as the first manufacturer of chloralkali. In 2007 and 2008, we were awarded His Majesty's Cup for the best five factories in Oman. In 2021, we did an expansion. We increased the capacity of the main plant by 60%.
[Company Representative] (Oman Chlorine): Okay. Assalamualaikum. Good morning, everyone. Is the voice clear? This is our presentation for H1 2026. We will go through the agenda. We will take you on an overview about Oman Chlorine if you are new investors. Then we will highlight on the major shareholders. We will talk about our product and capacity. We will give an overview about our subsidiaries in UAE and Qatar, including the shareholders' representatives. After that, we will take you through the financial performance, and then we will end up with Q&A. Oman Chlorine was established in 1997 as the first manufacturer of chloralkali. In 2007 and 2008, we were awarded His Majesty's Cup for the best five factories in Oman. In 2021, we did an expansion. We increased the capacity of the main plant by 60%.
Speaker #1: Yes.
Speaker #2: Hold on.
Speaker #1: Assalamu alaikum. Good morning, everyone. If the voice is clear, so this is our presentation for H1 2026. So we'll go through the agenda, we'll take you an overview about Oman Chlorine if you're a new investor, then we'll highlight on the major shareholders, we'll talk about our product and capacity, we'll give an overview about our subsidiaries in EUA and Qatar, including the shareholders' representatives, then after that we'll take you through the financial performance, and then we'll end up with Q&A.
Speaker #1: Oman Chlorine was established in 1997 as the first manufacturer of chlorine alkali. In 2007 and 2008, we were awarded His Majesty's Cup as one of the best five factories in Oman. In 2021, we did an expansion and increased the capacity of the main plant by 60%. In 2022, we built a new plant for calcium chloride with a capacity of 80 metric tons per day. In 2025, we added flaking capacity, which was commissioned on 1 October 2025. We have a very good HSE track record. We produce chemicals that go into oil and gas, as well as water treatment.
Bader Mohammed Al Yahyai: In 2022, we built a new plant for Calcium Chloride, with a capacity of 80 metric ton a day. In 2025, we added flaking capacity. It was commissioned on 1 October 2025. We have very good HSE track records. We produce chemicals that go into oil and gas and also water treatment. The major shareholders that own above 5%, we have Al Anwar Investments. They own 22.012%. We have Bank Muscat. They own 11.067%. We have Social Protection Fund. They own 9.5%. We have Oman International Petroleum and Energy Services. They own 9.1%. We have Al Azhar Trading and Contracting. They own 5.16%. We produce two main products, which is Hydrochloric Acid and Caustic Soda, and then we convert Hydrochloric Acid into Calcium Chloride and also Caustic Soda into Caustic Soda Flakes.
[Company Representative] (Oman Chlorine): In 2022, we built a new plant for Calcium Chloride, with a capacity of 80 metric ton a day. In 2025, we added flaking capacity. It was commissioned on 1 October 2025. We have very good HSE track records. We produce chemicals that go into oil and gas and also water treatment. The major shareholders that own above 5%, we have Al Anwar Investments. They own 22.012%. We have Bank Muscat. They own 11.067%. We have Social Protection Fund. They own 9.5%. We have Oman International Petroleum and Energy Services. They own 9.1%. We have Al Azhar Trading and Contracting. They own 5.16%. We produce two main products, which is Hydrochloric Acid and Caustic Soda, and then we convert Hydrochloric Acid into Calcium Chloride and also Caustic Soda into Caustic Soda Flakes.
Speaker #1: The major shareholders that own above 5%: we have Anwar Investment, they own 22.012%. We have Bank Muscat, they own 11.067%. We have the Social Protection Fund, they own 9.5%.
Speaker #1: We have Oman International Petroleum and Energy Services; they own 9.1%. And we have Al-Akhtiyar Trading and Contracting; they own 5.16%. We produce two main products, which are hydrochloric acid and caustic soda.
Speaker #1: And then we convert hydrochloric acid into calcium chloride, and also caustic soda into caustic soda flakes. The main application of our products: hydrochloric acid goes into oil and gas, it goes into enhanced oil recovery, mainly in oil stimulation or acid treatment.
Bader Mohammed Al Yahyai: The main application of our products, Hydrochloric Acid, goes into oil and gas. It goes into enhanced oil recovery, mainly in well stimulation or acid treatment. Calcium Chloride goes into drilling fluid as a drilling salt. We produce small quantities of Sodium Hypochlorite that goes into water treatment and purification of water. The Caustic Soda, if it is liquid or flakes, it goes into other products as a raw material to create a secondary component that is turned into plastic, and other products in petrochemicals. Milestones. Oman Chlorine subsidiaries. We have two plants in the region. One plant in the UAE under the name of Union Chlorine, and we own 72.1%. We produce similar products as Oman Chlorine. We produce Hydrochloric Acid, Caustic Soda, and Calcium Chloride.
[Company Representative] (Oman Chlorine): The main application of our products, Hydrochloric Acid, goes into oil and gas. It goes into enhanced oil recovery, mainly in well stimulation or acid treatment. Calcium Chloride goes into drilling fluid as a drilling salt. We produce small quantities of Sodium Hypochlorite that goes into water treatment and purification of water. The Caustic Soda, if it is liquid or flakes, it goes into other products as a raw material to create a secondary component that is turned into plastic, and other products in petrochemicals. Milestones. Oman Chlorine subsidiaries. We have two plants in the region. One plant in the UAE under the name of Union Chlorine, and we own 72.1%. We produce similar products as Oman Chlorine. We produce Hydrochloric Acid, Caustic Soda, and Calcium Chloride.
Speaker #1: Calcium chloride goes into drilling fluid as a drilling salt. We produce small quantities of sodium hypochlorite that goes into water treatment and purification of water.
Speaker #1: Then the caustic soda, whether it is in liquid form or as flakes, goes into other products as a raw material to create a secondary component that turns into plastic and other products in petrochemicals.
Speaker #1: Oman Chlorine subsidiaries: we have two plants in the region. One plant is in the UAE, and the name is Union Chlorine. We own 72.1%. We produce similar products as Oman Chlorine—we produce hydrochloric acid, caustic soda, and calcium chloride.
Speaker #1: And Union Chlorine is also managed by Oman Chlorine, since we have the majority in that company. This is the shareholder structure: we own 71.93%, 11.36% is owned by Union Chlorine Holding, and 16.71% is owned by Verizon Energy.
[Company Representative] (Oman Chlorine): Union Chlorine also is managed by Oman Chlorine since we have the majority in that company. This is the shareholder structure. I said we own 71.93%, 11.36% owned by Union Chlorine Holding, and 16.71% owned by Horizon Energy. We have another company in Qatar under the name of Gulf Chlorine. The capacity is similar to the plant in UAE, 72.5%, and it produces similar products, Caustic Soda, Hydrochloric Acid, and Sodium Hypochlorite. But the difference between the subsidiaries in UAE and the subsidiaries in Qatar, in Qatar, we have a JV that will produce Calcium Chloride with other partner under the name of United Chemicals. Gulf Chlorine is managed also by Oman Chlorine. This is the structure in Qatar. In Qatar, Gulf Chlorine, we own 51%, and Markab Capital, they own 49%.
Bader Mohammed Al Yahyai: Union Chlorine also is managed by Oman Chlorine since we have the majority in that company. This is the shareholder structure. I said we own 71.93%, 11.36% owned by Union Chlorine Holding, and 16.71% owned by Horizon Energy. We have another company in Qatar under the name of Gulf Chlorine. The capacity is similar to the plant in UAE, 72.5%, and it produces similar products, Caustic Soda, Hydrochloric Acid, and Sodium Hypochlorite. But the difference between the subsidiaries in UAE and the subsidiaries in Qatar, in Qatar, we have a JV that will produce Calcium Chloride with other partner under the name of United Chemicals. Gulf Chlorine is managed also by Oman Chlorine. This is the structure in Qatar. In Qatar, Gulf Chlorine, we own 51%, and Markab Capital, they own 49%.
Speaker #1: Then we have another company in Qatar, and the name is Gulf Chlorine. The capacity is similar to the plant in UAE—72.5%. And we produce similar products.
Speaker #1: Caustic soda, hydrochloric acid, and sodium hypochlorite. But the difference between the JV, the subsidiaries in the UAE, and the subsidiaries in Qatar—in Qatar, we have a JV where we produce calcium chloride with other partners, and the name is United Chemical.
Speaker #1: Gulf Chlorine is managed by—again, is managed also by Oman Chlorine. This is the structure in Qatar. So, in Qatar, for Gulf Chlorine, we own 51%, and Al-Marqab Capital owns 49%.
Speaker #1: Then on the calcium chloride, the JV that Gulf Chlorine owns under the name of United Chemical—Gulf Chlorine, they own 35%, and our Qatari partner, KLJQ, owns 65%.
Bader Mohammed Al Yahyai: On the Calcium Chloride, the JV that Gulf Chlorine own under the name of United Chemicals. Gulf Chlorine, they own 35%, and our Qatari partner, KLJ Organics Qatar, they own 65%. We will go through the financial and future outlook. I will hand over the presentation to our Group CFO, Mr. Balakrishnan.
[Company Representative] (Oman Chlorine): On the Calcium Chloride, the JV that Gulf Chlorine own under the name of United Chemicals. Gulf Chlorine, they own 35%, and our Qatari partner, KLJ Organics Qatar, they own 65%. We will go through the financial and future outlook. I will hand over the presentation to our Group CFO, Mr. Balakrishnan.
Speaker #1: Next, we'll go through the financials and future outlook. I will now hand over the presentation to our Group CFO, Mr. Balak Deshmukh.
Speaker #3: Hey, good afternoon. For the net profit for this half year, the profit was negative by 303, and you can see in this slide you have the dividend trend for the past 5 years.
Balakrishnan Venkataraman: Good afternoon. The net profit for this half yearly profit was -303. You can see in this slide we have the dividend trend for the past five years and also the share prices movement with the MSM. Coming to the financials, Oman Chlorine achieved a revenue of OMR 3.7 million for the first six months as against a 12 months figure of OMR 8.62 last year. EBITDA has come down to 605 and net profit is -303. The EBITDA margin has shrunk from 26% to 16%. On the group company level, the total revenue achieved was OMR 10.6 million as against last 12 months figure of OMR 27 million. The EBITDA was OMR 2.5 million as against OMR 7.8 for the last year.
Balakrishnan Venkataraman: Good afternoon. The net profit for this half yearly profit was -303. You can see in this slide we have the dividend trend for the past five years and also the share prices movement with the MSM. Coming to the financials, Oman Chlorine achieved a revenue of OMR 3.7 million for the first six months as against a 12 months figure of OMR 8.62 last year. EBITDA has come down to 605 and net profit is -303. The EBITDA margin has shrunk from 26% to 16%. On the group company level, the total revenue achieved was OMR 10.6 million as against last 12 months figure of OMR 27 million. The EBITDA was OMR 2.5 million as against OMR 7.8 for the last year.
Speaker #3: And also, the share price is moving with the MSFs. Coming to the financials, Oman Chlorine achieved a revenue of OMR 3.7 million for the first six months, as against a 12-month figure of OMR 8.62 million last year.
Speaker #3: EBITDA has come down to 605, and net profit is negative 303. EBITDA margin has shrunk from 26% to 16%. On the group company level, the total revenue achieved was 10 million Omani riyals, 10.6 million Omani riyals, as against last 12 months' figure of 27 million.
Speaker #3: And the EBITDA was 2.5 million, as against 7.8 for last year. And the profit is a loss—the opposite—a loss of negative 474 for the first 6 months, as against last year's profit of 1.6 million riyals.
Balakrishnan Venkataraman: The profits is a personal loss of -474 for the first six months as against last year's profit of OMR 1.6 million. This sheet shows the revenue, EBITDA, and the profit or loss figures for the past five years. You see that compared to last year, the revenue fell by 56.76%, EBITDA dropped by 73%, and PAT declined significantly. We have been able to maintain the capacity utilization at the same levels as the earlier years. The decline in sales is only primarily related to the ongoing regional situation, is impacting our demand. We have been optimizing our cost control in terms of administrative and costs. We have been controlling our costs, it has been lower than earlier years.
Balakrishnan Venkataraman: The profits is a personal loss of -474 for the first six months as against last year's profit of OMR 1.6 million. This sheet shows the revenue, EBITDA, and the profit or loss figures for the past five years. You see that compared to last year, the revenue fell by 56.76%, EBITDA dropped by 73%, and PAT declined significantly. We have been able to maintain the capacity utilization at the same levels as the earlier years. The decline in sales is only primarily related to the ongoing regional situation, is impacting our demand. We have been optimizing our cost control in terms of administrative and costs. We have been controlling our costs, it has been lower than earlier years.
Speaker #3: Here, this sheet shows the revenue, EBITDA, and the profit or loss figures for the past 5 years. You see that compared to last year, the revenue fell by 56.76%, EBITDA dropped by 73%, and PAT declined significantly.
Speaker #3: We have been able to maintain the capacity utilization at the same levels as in earlier years. The decline in sales volume is primarily related to the ongoing regional situation.
Speaker #3: It is impacting the demand. We have been optimizing our cost control in terms of administrative costs; we have been controlling, and of course, it has been lower than the earlier years.
Balakrishnan Venkataraman: We wanted to remain focused on maintaining high capacity and building stock so that once this conflict is over, we can come back to the market. On the group level, the revenue decreased by 60% as compared to last year. EBITDA fell by again the same 60.5%. The international prices in the Caustic Soda Lye and Calcium Chloride slightly better than last year. Sales volume has dropped due to the regional conflict. Both the subsidiary span companies have recorded loss in the first six months. We are very confident that once this regional conflict subsides, our revenues will be recovered to previous levels. We are remaining very focused on maintaining the profitability in the upcoming periods. Just to note, the current losses are primarily driven by the temporary geopolitical disruptions affecting trade flows, logistics, and customer demand.
Balakrishnan Venkataraman: We wanted to remain focused on maintaining high capacity and building stock so that once this conflict is over, we can come back to the market. On the group level, the revenue decreased by 60% as compared to last year. EBITDA fell by again the same 60.5%. The international prices in the Caustic Soda Lye and Calcium Chloride slightly better than last year. Sales volume has dropped due to the regional conflict. Both the subsidiary span companies have recorded loss in the first six months. We are very confident that once this regional conflict subsides, our revenues will be recovered to previous levels. We are remaining very focused on maintaining the profitability in the upcoming periods. Just to note, the current losses are primarily driven by the temporary geopolitical disruptions affecting trade flows, logistics, and customer demand.
Speaker #3: We wanted to remain focused on getting and maintaining high capacity and building stocks so that once this conflict is over, we can come back to the market.
Speaker #3: At the group level, revenue decreased by 60% compared to last year. EBITDA fell by, again, roughly the same amount—60.5%. International prices for caustic lye and calcium chloride are slightly better than last year.
Speaker #3: Sales volume has dropped due to the regional conflict. Both the subsidiaries and parent companies have recorded losses in the first six months. We are very confident that, once this regional conflict subsides, we will be able to recover. The revenues will be restored to previous levels.
Speaker #3: We are remaining very focused on maintaining profitability in the upcoming periods. Just to note, the current losses are primarily driven by temporary geopolitical disruptions affecting trade flows, logistics, and customer demand.
Speaker #3: Management is confident that this performance will improve once regional conditions stabilize, supported by the company's strong market presence, enhanced customer relationships, and operational resilience.
Balakrishnan Venkataraman: Managing this conflict that the business performance will improve once regional conditions stabilize, supported by each company's strong market presence, enhanced customer relationship, and operational resilience. We are continuing to monitor the oil fluctuations and the price fluctuation in chemical commodities globally. The group continuously remain optimistic for its product demand and price position in the near future provided the oil and gas activities continue to revive. Any questions? Please let us know.
Balakrishnan Venkataraman: Managing this conflict that the business performance will improve once regional conditions stabilize, supported by each company's strong market presence, enhanced customer relationship, and operational resilience. We are continuing to monitor the oil fluctuations and the price fluctuation in chemical commodities globally. The group continuously remain optimistic for its product demand and price position in the near future provided the oil and gas activities continue to revive. Any questions? Please let us know.
Speaker #3: We are continuing to monitor the oil fluctuations and price fluctuations in chemical commodities globally. The group continues to remain optimistic about its product demand and price position in the near future.
Speaker #3: However, the oil and gas activity continues to remain. If you have any questions, please let us know.
Speaker #1: Okay, so we'll open the floor to Q&A. If you have any questions, please introduce yourself and then ask your question. Any questions?
[Company Representative] (Oman Chlorine): We will open the floor to Q&A. Please, if you have any questions, please introduce yourself and then ask your question. Any questions?
Bader Mohammed Al Yahyai: We will open the floor to Q&A. Please, if you have any questions, please introduce yourself and then ask your question. Any questions?
[Company Representative] (Oman Chlorine): Mohammed, we will wait for three minutes. Mohammed, I think there is no question. We can continue. If you do not have any question, we will conclude our session today and hopefully we will see you in the next investor sessions next year. Thank you very much. The recording has stopped.
[Company Representative] (Oman Chlorine): Mohammed, we will wait for three minutes. Mohammed, I think there is no question. We can continue.
Speaker #1: Mohamed, we'll wait for three minutes. Hello, any questions? Mohamed, I think there are no questions. You can continue.
Speaker #2: So, if you don't have any questions, we'll conclude our session today. Hopefully, we'll see you in the next investor sessions next year. Thank you very much.
Bader Mohammed Al Yahyai: If you do not have any question, we will conclude our session today and hopefully we will see you in the next investor sessions next year. Thank you very much.
