Half Year 2026 SMN Power Holding SAOG Earnings Call
Abdullah Al Naimi: السلام عليكم جميعًا. I hope you can all see us okay and hear us fine. If there are any issues, please let us know. If there are any issues with the audio, please let us know. Once again, I would like to welcome you to this interactive session to discuss the results for the H1 of the year 2026, six months period starting from January to June 2026 for SMN Power Holding. Before I start, I would like to introduce myself, Abdullah Al Naimi, I am the Chief Financial Officer of the company. Also by my colleague, Taylor Stanway from the Finance Department. The structure for today's session will be as follows: we will start to provide a very quick overview of the operation and performance for the six months period. After that, we will give a very quick overview of the financial results for the same period.
Abdullah Al Naimi: [Foreign language]. I hope you can all see us okay and hear us fine. If there are any issues, please let us know. If there are any issues with the audio, please let us know. Once again, I would like to welcome you to this interactive session to discuss the results for the H1 of the year 2026, six months period starting from January to June 2026 for SMN Power Holding. Before I start, I would like to introduce myself, Abdullah Al Naimi, I am the Chief Financial Officer of the company. Also by my colleague, Taylor Stanway from the Finance Department. The structure for today's session will be as follows: we will start to provide a very quick overview of the operation and performance for the six months period. After that, we will give a very quick overview of the financial results for the same period.
Speaker #1: I hope you can all see us okay and hear us fine. If there are any issues, please let us know.
Speaker #1: If there are any issues with the audio, please let us know. So, once again, I would like to welcome you to this interactive session to discuss the results for the first half of the year 2026.
Speaker #1: It's a six-month period, starting from January to June 2026, for SMN Power Holdings. Before I start, I would like to introduce myself: Abdullah Nahimi.
Speaker #1: I'm the Chief Financial Officer of the company. Also, I'm joined by my colleague, Taylor Hassanoui, from the Finance Department. The structural quoting session will be as follows: we will start by providing a very quick overview of the operation and performance for the 6-month period, and after that, we'll give a very quick overview of the financial results for the same period.
Speaker #1: Then after that, we will give an overview of the dividend policy and progress, and then finally a quick overview of the future outlook. Assalamu alaikum jami'an wa narahib bikum jami'an fi hadhihi al-jalsa al-naqashiya.
Abdullah Al Naimi: Then after that, we will give an overview of the dividend policy and progress, and then finally, a quick overview of the future outlook. السلام عليكم جميعًا، ونرحب بالجميع في هذه الجلسة المناقشية لمناقشة النتائج المالية للفترة الستة أشهر من شهر يناير إلى شهر يونيو 2026. خلال هذه الجلسة إن شاء الله، سنحاول تغطية بعض المعلومات، من خلالها سيكون هناك نبذة عن الأداء التشغيلي للشركة خلال الستة أشهر، وأيضًا سيكون هناك نبذة عن الأداء المالي للشركة خلال فترة الستة أشهر، بالإضافة إلى نبذة عن توزيعات الأرباح، وأيضًا فكرة عامة عن التوقعات المستقبلية للشركة، إن شاء الله. In terms of the operational performance, as you all know, the company has two power plants, water plants. The power plants are located at Al Wusta Industrial Area, under Al Wusta Power Company, and the other power plant is Barka, which is located at Barka Governorate.
Abdullah Al Naimi: Then after that, we will give an overview of the dividend policy and progress, and then finally, a quick overview of the future outlook. السلام عليكم جميعًا، ونرحب بالجميع في هذه الجلسة المناقشية لمناقشة النتائج المالية للفترة الستة أشهر من شهر يناير إلى شهر يونيو 2026. خلال هذه الجلسة إن شاء الله، سنحاول تغطية بعض المعلومات، من خلالها سيكون هناك نبذة عن الأداء التشغيلي للشركة خلال الستة أشهر، وأيضًا سيكون هناك نبذة عن الأداء المالي للشركة خلال فترة الستة أشهر، بالإضافة إلى نبذة عن توزيعات الأرباح، وأيضًا فكرة عامة عن التوقعات المستقبلية للشركة، إن شاء الله. In terms of the operational performance, as you all know, the company has two power plants, water plants. The power plants are located at Al Wusta Industrial Area, under Al Wusta Power Company, and the other power plant is Barka, which is located at Barka Governorate.
Speaker #1: من شهر يناير إلى شهر يونيو 2026. خلال هذه الجلسة، إن شاء الله، راح نحاول نغطي بعض المعلومات. من خلالها راح يكون هناك نبذة عن الأداء التشغيلي للشركة خلال الستة أشهر، وأيضًا راح يكون هناك نبذة عن الأداء المالي للشركة خلال فترة الستة أشهر، بالإضافة إلى نبذة عن توزيعات الأرباح، وأيضًا فكرة عامة عن التوقعات المستقبلية للشركة، إن شاء الله.
Speaker #1: So, in terms of the operational performance, as you all know, the company has two power plants: water plants. The power plants are located at, I would say, industrial area, and that, I would say, power company.
Speaker #1: And the other power plant is Baraka, which is located at Baraka Governorate. For, I would say, the power company, as also disclosed to the market in our Board of Directors report for the 6-month period, we are delighted to confirm that we have largely completed the GT1 to GT6 dismantling process, which was a very complex process indeed, and we're delighted to confirm that the process is now completed.
Abdullah Al Naimi: For Al Wusta Power Company, as also disclosed to the market in our board of directors report for the six-month period, we are delighted to confirm that we are largely completed GT1 to GT6 dismantling process, which was a very complex process indeed. We are delighted to confirm that the process is now completed, achieving the best and highest HSE, Health, Safety, Environment standards. We have been working very closely with the buyer and also with the relevant authorities to ensure that this project will go actually very well, achieving all the regulatory and also environmental obligations. This has been already disclosed to the market, and we wanted just to confirm it as well.
Abdullah Al Naimi: For Al Wusta Power Company, as also disclosed to the market in our board of directors report for the six-month period, we are delighted to confirm that we are largely completed GT1 to GT6 dismantling process, which was a very complex process indeed. We are delighted to confirm that the process is now completed, achieving the best and highest HSE, Health, Safety, Environment standards. We have been working very closely with the buyer and also with the relevant authorities to ensure that this project will go actually very well, achieving all the regulatory and also environmental obligations. This has been already disclosed to the market, and we wanted just to confirm it as well.
Speaker #1: Achieving the best and highest HSE—health, safety, environment—standards. We have been working very closely with the buyer and also with the relevant authorities to ensure that this project will give us very well achieving all the regulatory and also environmental regulation.
Speaker #1: So, this has been already disclosed to the market, and we wanted just to confirm it as well. The industrial shelter of a sale in the word and June 2026، وتمت العملية الحمد لله بأعلى معايير الصحة والسلامة البيئية، وأيضًا الالتزام بأعلى معايير إجراءات القوانين اللازمة.
Abdullah Al Naimi: بالنسبة لشركة الطاقة، نود أن نذكر بأن مشروع تفكيك التوربينات الغازية من التوربين رقم واحد إلى التوربين رقم ستة، تم الحمد لله بنجاح في خلال شهر يونيو 2026، وتمت العملية الحمد لله بأعلى معايير الصحة والسلامة البيئية، وأيضًا الالتزام بأعلى معايير الإجراءات والقوانين اللازمة. وتم العمل بشكل وثيق مع جميع الشركاء، سواء كان الشركة المنفذة والمشتري لهذه المعدات، أو من خلال أيضًا العمل مع الجهات المنظمة كذلك. For SMN Barka Power Company, again, for the six-month period, we are delighted to confirm that the company has achieved a good reliability performance as disclosed to the market for both plants, actually for SMN Barka Power and also for SMN Barka Water. We are continuing to work closely with our partners, including the offtaker and the regulator to ensure that the various standards, the requirements, etc., have been complied with for the period.
Abdullah Al Naimi: بالنسبة لشركة الطاقة، نود أن نذكر بأن مشروع تفكيك التوربينات الغازية من التوربين رقم واحد إلى التوربين رقم ستة، تم الحمد لله بنجاح في خلال شهر يونيو 2026، وتمت العملية الحمد لله بأعلى معايير الصحة والسلامة البيئية، وأيضًا الالتزام بأعلى معايير الإجراءات والقوانين اللازمة. وتم العمل بشكل وثيق مع جميع الشركاء، سواء كان الشركة المنفذة والمشتري لهذه المعدات، أو من خلال أيضًا العمل مع الجهات المنظمة كذلك. For SMN Barka Power Company, again, for the six-month period, we are delighted to confirm that the company has achieved a good reliability performance as disclosed to the market for both plants, actually for SMN Barka Power and also for SMN Barka Water. We are continuing to work closely with our partners, including the offtaker and the regulator to ensure that the various standards, the requirements, etc., have been complied with for the period.
Speaker #1: وتم العمل بشكل وثيق مع جميع الشركاء، سواء كانت الشركة المنفذة والمشترية لهذه المعدات، أو من خلال أيضًا العمل مع الجهات المنظمة كذلك. For SMN Baraka Power Company, again, for the six-month period, we're delighted to confirm that the company has achieved good reliability performance, as disclosed to the market, for both plants—actually for SMN Baraka Power and also for SMN Baraka Water.
Speaker #1: And we're continuing to work closely with our partners, including the off-taker and the regulator, to ensure that the various standards, requirements, etc., have been complied with for the period.
Speaker #1: بالنسبة لشركة بركة للطاقة، كذلك نود التأكيد بأن الشركة حققت أداء جيداً خلال فترة الستة أشهر من الناحية التشغيلية، سواء كان ذلك لمحطة بركة للطاقة أو لمحطة بركة للمياه. وما يزال العمل مستمراً أيضاً بشكل وثيق مع شركائنا، سواء الشركة العمانية لشراء الطاقة والمياه أو مع منظم القطاع، الهيئة العامة لتنظيم الخدمات العامة، للتأكد من أن جميع الالتزامات والاشتراطات المطلوبة قد تم الامتثال لها.
Abdullah Al Naimi: بالنسبة لشركة بركة للطاقة، كذلك نود التأكيد أن الشركة حققت أداءً جيدًا خلال فترة الستة أشهر من الناحية التشغيلية، سواء كان لمحطة بركة للطاقة أو لمحطة بركة للمياه. ونستمر العمل أيضًا بشكل وثيق مع شركائنا، سواء الشركة العمانية لشراء الطاقة والمياه أو مع المنظمة التي تعمل على تنظيم الخدمات العامة للتأكد من أن جميع الالتزامات والاشتراكات المقررة قد تم الامتثال لها. This is a very quick overview of the operational performance of the company, including its plants for power, Al Wusta and SMN Barka, and also the plant for water. In terms of the financial results for the six months period from January to June 2026, and as disclosed to the market, the company has achieved an overall revenue of OMR 45 million for the six months period. In 2025, for the same period, the company achieved OMR 3 million.
Abdullah Al Naimi: بالنسبة لشركة بركة للطاقة، كذلك نود التأكيد أن الشركة حققت أداءً جيدًا خلال فترة الستة أشهر من الناحية التشغيلية، سواء كان لمحطة بركة للطاقة أو لمحطة بركة للمياه. ونستمر العمل أيضًا بشكل وثيق مع شركائنا، سواء الشركة العمانية لشراء الطاقة والمياه أو مع المنظمة التي تعمل على تنظيم الخدمات العامة للتأكد من أن جميع الالتزامات والاشتراكات المقررة قد تم الامتثال لها. This is a very quick overview of the operational performance of the company, including its plants for power, Al Wusta and SMN Barka, and also the plant for water. In terms of the financial results for the six months period from January to June 2026, and as disclosed to the market, the company has achieved an overall revenue of OMR 45 million for the six months period. In 2025, for the same period, the company achieved OMR 3 million.
Speaker #1: So, this is a very quick overview of the operational performance of the company, including its plants for power, I would say, and SMN Baraka.
Speaker #1: And also the plans for, in terms of the financial results for the 6-month period from January to June 2026. As disclosed to the market, the company has achieved an overall revenue of OMR 45 million for the 6-month period.
Speaker #1: And in 2025, for the same period, the company achieved OMR 3 million. This significant increase in revenue is mainly attributable to the high dispatch and the high utilization of the plants in 2026.
Abdullah Al Naimi: This significant increase in revenue is mainly attributable to the high dispatch, the high utilization of the plant in 2026. Similarly, the company has incurred a total direct cost of production of OMR 43 million in comparison to OMR 1.2 million for the same period in 2025. Again, this is for the same reason, driven by the high dispatch and utilization of the plant. Overall, in terms of the gross profit, the company generated OMR 2.2 million in comparison to OMR 2.1 million in 2025, keeping the gross profit more or less in line with the previous year. In terms of the net profit for the period, the company achieved OMR 844,000 as net profit for the period six months ended in 2026 in comparison to OMR 1.4 million achieved for the same period in 2025.
Abdullah Al Naimi: This significant increase in revenue is mainly attributable to the high dispatch, the high utilization of the plant in 2026. Similarly, the company has incurred a total direct cost of production of OMR 43 million in comparison to OMR 1.2 million for the same period in 2025. Again, this is for the same reason, driven by the high dispatch and utilization of the plant. Overall, in terms of the gross profit, the company generated OMR 2.2 million in comparison to OMR 2.1 million in 2025, keeping the gross profit more or less in line with the previous year. In terms of the net profit for the period, the company achieved OMR 844,000 as net profit for the period six months ended in 2026 in comparison to OMR 1.4 million achieved for the same period in 2025.
Speaker #1: And similarly, the company has incurred a total direct cost of production of 43 million Omani riyals, in comparison to 1.2 million Omani riyals for the same period in 2025.
Speaker #1: Again, this is for the same reasons, driven by the high dispatch and utilization of the plants. Overall, in terms of gross profit, the company generated 2.2 million, in comparison to 2.1 million in 2025, keeping the gross profit more or less in line with the previous year.
Speaker #1: In terms of the net profit for the period, the company achieved OMR 844,000 net profit for the six-month period in 2026, in comparison to OMR 1.4 million achieved for the same period in 2025.
Speaker #1: The key reason for this variance is, and as disclosed to the market, is in relation to the theme turbine number 2, insurance claim. A claim has been made, and was successful, for the period 6 months period in 2025, and that has accounts for the majority of the difference between 26 and 6 months period in 2025.
Abdullah Al Naimi: The key reason for this variance is, and as disclosed to the market, is in relation to the steam turbine number two insurance claim. A claim has been made and was successful for the period six months ended in 2025 and that has accounted for the majority of the difference between '26 and six months period in 2025. خلال فترة الستة أشهر من شهر يناير إلى شهر يونيو 2026، حققت الشركة إجمالي إيرادات مقدرة بـ OMR 45 مليون مقارنة بـ OMR 33 مليون لنفس الفترة في 2025. ويعزى هذا التغيير في الإيرادات بشكل رئيسي إلى زيادة تحميل الأوزان، الذي هو طبعًا تشغيل المحطات، كان أكثر بكثير من نفس الفترة من عام 2025. طبعًا لنفس السبب أيضًا، كانت تكاليف الإنتاج للشركة OMR 43 مليون لفترة الستة أشهر من 2026 مقارنة بـ OMR 31 مليون لنفس الفترة من 2025، لنفس السبب وهو الزيادة الكبيرة في تشغيل المحطة.
Abdullah Al Naimi: The key reason for this variance is, and as disclosed to the market, is in relation to the steam turbine number two insurance claim. A claim has been made and was successful for the period six months ended in 2025 and that has accounted for the majority of the difference between '26 and six months period in 2025. خلال فترة الستة أشهر من شهر يناير إلى شهر يونيو 2026، حققت الشركة إجمالي إيرادات مقدرة بـ OMR 45 مليون مقارنة بـ OMR 33 مليون لنفس الفترة في 2025. ويعزى هذا التغيير في الإيرادات بشكل رئيسي إلى زيادة تحميل الأوزان، الذي هو طبعًا تشغيل المحطات، كان أكثر بكثير من نفس الفترة من عام 2025. طبعًا لنفس السبب أيضًا، كانت تكاليف الإنتاج للشركة OMR 43 مليون لفترة الستة أشهر من 2026 مقارنة بـ OMR 31 مليون لنفس الفترة من 2025، لنفس السبب وهو الزيادة الكبيرة في تشغيل المحطة.
Speaker #1: خلال فترة الستة أشهر من يناير إلى يونيو 2026، حققت الشركة إجمالي إيرادات مقدرة بـ 45 مليون ريال عُماني، مقارنة بـ 33 مليون ريال عُماني لنفس الفترة في 2025.
Speaker #1: ويعزى هذا التغير في الإيرادات بشكل رئيسي إلى زيادة تحميل الأوزان، اللي هو طبعًا تشغيل المحطات كان أكثر بكثير من نفس الفترة من عام 2025.
Speaker #1: طبعًا لنفس السبب أيضًا، كانت تكاليف الإنتاج للشركة 43 مليون ريال عماني لفترة الستة أشهر من 2026، مقارنة بـ 31 مليون ريال عماني لنفس الفترة من 2025 لنفس السبب، وهو الزيادة الكبيرة في تشغيل المحطات.
Speaker #1: طبعًا من ناحية الربح الإجمالي، الأرباح الإجمالية تقريبًا مليونين ومئتين ألف ريال عماني، مقارنة بمليونين ومئة ألف ريال عماني لنفس الفترة من عام 2025.
Abdullah Al Naimi: طبعًا من ناحية الربح الإجمالي، الأرباح الإجمالية تقريبًا OMR 2.2 مليون مقارنة بـ OMR 2.1 مليون تقريبًا لنفس الفترة من عام 2025. بالنسبة لصافي الأرباح، حققت الشركة OMR 844,000 كأرباح خلال فترة الستة أشهر من 2026 مقارنة بـ OMR 1.4 مليون لنفس الفترة من عام 2025. ويعزى السبب الرئيسي في هذا الفرق إلى مطالبة التأمين المتعلقة بالتوربين الغازي في محطة SMN Barka، حيث تمت المطالبة بالتأمين في عام 2025 وتم الحصول عليها. In terms of the dividend policy, and again as disclosed to the market, our dividend policy is based on that once the company fulfills all its obligations under the various agreements, including facilities agreements and provisions and CapEx requirements, the company will then distribute all the remaining surplus to the investors. The dividend policy has already been disclosed to the market earlier this year.
Abdullah Al Naimi: طبعًا من ناحية الربح الإجمالي، الأرباح الإجمالية تقريبًا OMR 2.2 مليون مقارنة بـ OMR 2.1 مليون تقريبًا لنفس الفترة من عام 2025. بالنسبة لصافي الأرباح، حققت الشركة OMR 844,000 كأرباح خلال فترة الستة أشهر من 2026 مقارنة بـ OMR 1.4 مليون لنفس الفترة من عام 2025. ويعزى السبب الرئيسي في هذا الفرق إلى مطالبة التأمين المتعلقة بالتوربين الغازي في محطة SMN Barka، حيث تمت المطالبة بالتأمين في عام 2025 وتم الحصول عليها. In terms of the dividend policy, and again as disclosed to the market, our dividend policy is based on that once the company fulfills all its obligations under the various agreements, including facilities agreements and provisions and CapEx requirements, the company will then distribute all the remaining surplus to the investors. The dividend policy has already been disclosed to the market earlier this year.
Speaker #1: بالنسبة للأرباح، صافي الأرباح حققت الشركة 844,000 ريال عماني كأرباح خلال فترة الستة أشهر إلى 2026، مقارنة بمليون و400 ألف لنفس الفترة من عام 2025.
Speaker #1: ويُعزى السبب الرئيسي في هذا الفرق إلى مطالبة التأمين المتعلقة بالتوربين الغازي في محطة SMN Baraka، حيث تم التقدم بالمطالبة التأمينية في عام 2025 وتم الحصول عليها.
Speaker #1: In terms of the dividend policy, and again as disclosed to the market, our dividend policy is based on the fact that once the company fulfills all its obligations under the various agreements, including utilities agreements, provisions, and capex requirements, then the company will distribute all the remaining surplus to the investors.
Speaker #1: The dividend policy has already been disclosed to the market earlier this year. Now, up until now, the company has already distributed 1.5 million. So this 1.5 million has been flowing from the subsidiaries, from the Fed and Baraka, and has been distributed to the SMN Power Holding, and then once we meet the rest of the regulatory requirements, including the requirements for having a full audited account, the money will flow to the wider investors, and between now and the next 6 months period, any additional dividends will also be disclosed.
Abdullah Al Naimi: Up until now, the company has already distributed OMR 1.5 million. This OMR 1.5 million has been flowing from the subsidiaries, from Al Wusta and Barka, and has been distributed to SMN Power Holding. Once we meet the rest of the regulatory requirements, including the requirement of having a full audited account, the money will flow to the wider investors in between now and the next six months period. Any additional dividends will also be disclosed. بالنسبة لتوزيعات الأرباح، الشركات التابعة، شركة الوسطى للطاقة وشركة بركة للطاقة، وزعت إجمالي مليونًا وخمسمئة ألف تقريبًا حاليًا إلى الشركة الأم، إلى SMN Power Holding القابضة. وطبعًا بعد الامتثال لقوانين شركات سلطنة عُمان، والتي هي طبعًا جزء من عملية تدقيق الحسابات، سيتم توزيع هذه الأرباح إلى المساهمين. وخلال الفترة القادمة إن شاء الله، إذا كان هناك أي أرباح إضافية خاضعة للتوزيع، سيتم أيضًا الإعلان عنها.
Abdullah Al Naimi: Up until now, the company has already distributed OMR 1.5 million. This OMR 1.5 million has been flowing from the subsidiaries, from Al Wusta and Barka, and has been distributed to SMN Power Holding. Once we meet the rest of the regulatory requirements, including the requirement of having a full audited account, the money will flow to the wider investors in between now and the next six months period. Any additional dividends will also be disclosed. بالنسبة لتوزيعات الأرباح، الشركات التابعة، شركة الوسطى للطاقة وشركة بركة للطاقة، وزعت إجمالي مليونًا وخمسمئة ألف تقريبًا حاليًا إلى الشركة الأم، إلى SMN Power Holding القابضة. وطبعًا بعد الامتثال لقوانين شركات سلطنة عُمان، والتي هي طبعًا جزء من عملية تدقيق الحسابات، سيتم توزيع هذه الأرباح إلى المساهمين. وخلال الفترة القادمة إن شاء الله، إذا كان هناك أي أرباح إضافية خاضعة للتوزيع، سيتم أيضًا الإعلان عنها.
Speaker #1: بالنسبة لتوزيعات الأرباح، الشركات التابعة، شركة الرسيل للطاقة وشركة بركة للطاقة، وزعت إجمالي مليون تقريبًا و500 ألف حاليًا إلى الشركة الأم، إلى SMN Power Holding القاهرة.
Speaker #1: وطبعًا بعد الامتثال لقوانين شركات سلطنة عمان، والتي هي طبعًا جهة من عملية تدقيق الحسابات، سيتم توزيع هذه الأرباح إلى المساهمين، وخلال الفترة القادمة إن شاء الله، إذا كان هناك أي أرباح إضافية خاضعة للتوزيع، سيتم أيضًا الإعلان عنها.
Speaker #1: سياسة التوزيعات طبعًا تم الإعلان عنها والإفصاح عنها خلال هذه السنة، وهي أنه بعد الالتزام بجميع التزامات الشركة، سواء كانت التزامات تعاقدية أو التزامات ظروف تجارية، فإن أي فائض نقدي يتم توزيعه على المساهمين كأرباح.
Abdullah Al Naimi: سياسة التوزيعات تم الإعلان عنها والإصدار عنها خلال هذه السنة، وهي أن بعد الالتزام بجميع التزامات الشركة، سواء كانت التزامات تعاقدية أو التزامات ظروف تجارية، فإن أي فائض نقدي يتم توزيعه على المساهمين كأرباح. In terms of the future outlook, and as disclosed many times already, the company is currently operating under PPAs and WPAs framework for both plants for Al Wusta, for SMN Power, and also for SMN Water plants. These PPAs are long term in nature. The company has been awarded almost six years for Al Wusta PPA extension and almost nine years extension for SMN Power and also a similar period for SMN Water.
Abdullah Al Naimi: سياسة التوزيعات تم الإعلان عنها والإصدار عنها خلال هذه السنة، وهي أن بعد الالتزام بجميع التزامات الشركة، سواء كانت التزامات تعاقدية أو التزامات ظروف تجارية، فإن أي فائض نقدي يتم توزيعه على المساهمين كأرباح. In terms of the future outlook, and as disclosed many times already, the company is currently operating under PPAs and WPAs framework for both plants for Al Wusta, for SMN Power, and also for SMN Water plants. These PPAs are long term in nature. The company has been awarded almost six years for Al Wusta PPA extension and almost nine years extension for SMN Power and also a similar period for SMN Water.
Speaker #1: In terms of the future outlook, and as disclosed many times already, the company is currently operating under PPAs and WPAs framework for both plants for sale, for SMN Power, and also for SMN Water Plants.
Speaker #1: These PPAs are long-term in nature. The company has been awarded almost six years for our Salk PPA extension, and almost nine years extension for SMN Power, and also a similar period for SMN Water.
Speaker #1: The company is also working very closely with our partners, including the off-taker, Oman Power and Water Procurement Company, the regulator, and also the grid operator, Oman Electricity and Transmission Company, to ensure that the company continues to play its critical role in Oman in the supply of power and water, and the stability of the grid.
Abdullah Al Naimi: The company is working also very closely with our partners, including the off-taker, Oman Power and Water Procurement Company, the regulator, and also the grid operator, Oman Electricity Transmission Company, to ensure that the company continues to play its critical role in Oman in the supply of power and water and the stability of the grid. The company is also working very closely to identify any future opportunities for extensions given the demand and supply in Oman. بالنسبة للنظرة المستقبلية، وكما تم الإصدار عنه سابقًا، وكما يعلم الجميع، فإن الشركة قد حصلت على تمديد في عقود شراء الطاقة وعقد شراء المياه. وتعمل الشركة بشكل وثيق مع شركائها، سواء كان الشركة العمانية لشراء الطاقة والمياه أو المنظم للقطاع أو الشركة العمانية لنقل الكهرباء في التأكد دائماً أن الشركة تقوم بدورها بشكل فعال في تأمين احتياجات من الطاقة والمياه، وأيضاً في الترحيب بأي فرص مستقبلية ممكنة.
Abdullah Al Naimi: The company is working also very closely with our partners, including the off-taker, Oman Power and Water Procurement Company, the regulator, and also the grid operator, Oman Electricity Transmission Company, to ensure that the company continues to play its critical role in Oman in the supply of power and water and the stability of the grid. The company is also working very closely to identify any future opportunities for extensions given the demand and supply in Oman. بالنسبة للنظرة المستقبلية، وكما تم الإصدار عنه سابقًا، وكما يعلم الجميع، فإن الشركة قد حصلت على تمديد في عقود شراء الطاقة وعقد شراء المياه. وتعمل الشركة بشكل وثيق مع شركائها، سواء كان الشركة العمانية لشراء الطاقة والمياه أو المنظم للقطاع أو الشركة العمانية لنقل الكهرباء في التأكد دائماً أن الشركة تقوم بدورها بشكل فعال في تأمين احتياجات من الطاقة والمياه، وأيضاً في الترحيب بأي فرص مستقبلية ممكنة.
Speaker #1: The company is also working very closely to identify any future opportunities for extension, given the demand and supply in Oman. بالنسبة طبعًا للنظرة المستقبلية، وكما تم الإفصاح عنه سابقًا، وكما يعلم الجميع، فإن الشركة قد حصلت على تمديد في عقود شراء الطاقة، وعقد شراء المياه، وتعمل الشركة بشكل وثيق مع شركائنا، سواء كانت الشركة العمانية لشراء الطاقة والمياه، أو المنظم للقطاع، أو الشركة العمانية لنقل الكهرباء، للتأكد دائمًا من أن الشركة تقوم بدورها بشكل فعال في تأمين الاحتياجات من الطاقة والمياه، وأيضًا الترحيب بأي فرص مستقبلية ممكنة.
Speaker #1: So that's basically bringing the summary to a conclusion, and I leave the floor to you now for any questions. نرحب طبعًا بأي استفسارات أو أسئلة من الحاضرين.
Abdullah Al Naimi: That basically brings the summary into a conclusion, and I leave the floor to you now for any queries. نرحب طبعاً بأي استفسارات أو أسئلة من الحاضرين. طبعاً نحن دائماً موجودين وحاضرين لأي استفسارات، سواءً كانت عن طريق التواصل الإلكتروني أو عن طريق التواصل المباشر أو حتى عن طريق الحضور الشخصي. فنحن في أي لحظة موجودين وحاضرين لأي استفسار من مستثمري الشركة. Of course, as we always mention, we are available for any queries, any questions at any time. You don't have to wait for the interact session. We welcome any queries from our investors be it through emails or other means. Please do not hesitate to reach out to us should you have any queries or questions in the future. Of course, the link to this interact session will be also uploaded on MSX portal so you can refer to it at any time.
Abdullah Al Naimi: That basically brings the summary into a conclusion, and I leave the floor to you now for any queries. نرحب طبعاً بأي استفسارات أو أسئلة من الحاضرين. طبعاً نحن دائماً موجودين وحاضرين لأي استفسارات، سواءً كانت عن طريق التواصل الإلكتروني أو عن طريق التواصل المباشر أو حتى عن طريق الحضور الشخصي. فنحن في أي لحظة موجودين وحاضرين لأي استفسار من مستثمري الشركة. Of course, as we always mention, we are available for any queries, any questions at any time. You don't have to wait for the interact session. We welcome any queries from our investors be it through emails or other means. Please do not hesitate to reach out to us should you have any queries or questions in the future. Of course, the link to this interact session will be also uploaded on MSX portal so you can refer to it at any time.
Speaker #1: طبعًا نحن دائمًا موجودين وحاضرين لأي استفسارات، سواء كانت عن طريق التواصل الإلكتروني، أو عن طريق التواصل المباشر، أو حتى عن طريق الحضور شخصيًا. فنحن في أي لحظة موجودين وحاضرين لأي استفسار من المساهمين الكرام.
Speaker #1: Of course, as we always mention, we are available for any queries or questions at any time. You don't have to wait for the interactive session.
Speaker #1: We welcome any queries from our investors, be it via this platform or other means. So please do not hesitate to reach out to us should you have any queries or questions in the future.
Speaker #1: Of course, the link to this interactive session will also be uploaded on the MSX portal, so you can refer to it at any time. Yes, Mr. Rao, yes?
Abdullah Al Naimi: Mr. Rao? Yes.
Abdullah Al Naimi: Mr. Rao? Yes.
Speaker #2: Can you hear me?
Speaker #1: Yes, I can hear you. Yes, go ahead.
[Analyst]: Can you hear me?
[Analyst]: Can you hear me?
Speaker #2: Yes, thank you. Thank you for the presentation. I have a couple of questions. So, what is the current demand in the MIS system—total demand in the MIS system?
Abdullah Al Naimi: Yes, I can hear you. Yes, go ahead.
Abdullah Al Naimi: Yes, I can hear you. Yes, go ahead.
[Analyst]: Yes. Thank you. Thank you for the presentation. I have a couple of questions. What is the current demand in MIS system? Total demand in MIS system.
[Analyst]: Yes. Thank you. Thank you for the presentation. I have a couple of questions. What is the current demand in MIS system? Total demand in MIS system.
Speaker #1: The demand, Mr. Rao, generally is growing in Oman. As you know, OPWP has been very busy with launching a number of projects. I am sure you're following the market.
Abdullah Al Naimi: The demand, Mr. Rao, generally is growing in Oman. As you know, OPWP has been very busy with launching a number of projects. I am sure you are following the market. But the demand in general is growing. I would like to refer you to OPWP seven-year statements for full details. OPWP, the off-takers normally issue an annual seven-year statement which has more details of the projection in Oman in terms of the upcoming demand for the next seven years and the plan to fulfill this demand. But the bottom line is the demand from the market seems to be growing.
Abdullah Al Naimi: The demand, Mr. Rao, generally is growing in Oman. As you know, OPWP has been very busy with launching a number of projects. I am sure you are following the market. But the demand in general is growing. I would like to refer you to OPWP seven-year statements for full details. OPWP, the off-takers normally issue an annual seven-year statement which has more details of the projection in Oman in terms of the upcoming demand for the next seven years and the plan to fulfill this demand. But the bottom line is the demand from the market seems to be growing.
Speaker #1: But the demand in general is growing. And I would like to refer you to OPWP seven-year statements for full details. OPWP the off-taker issue normally they issue an annual seven-year statements, which has more detailed of the projection in Oman in terms of the demand upcoming demand for the next seven years and the plan to fulfill this demand.
Speaker #1: But the bottom line is, the demand from the market seems to be growing.
Speaker #2: And the second question is, what is the life of your plant? We have seen that other IPPs have gotten extensions of 14 or 15 years, but you have received an extension of 9 years.
[Analyst]: What is the life of your plant? We have seen that the other IPPs have got extension of 14 or 15 years, but you have got extension of 9 years. Can you tell what is the specific reason why you have got the extension for 9 years? Is this due to plant life or any other reason? Can you please shed a light?
[Analyst]: What is the life of your plant? We have seen that the other IPPs have got extension of 14 or 15 years, but you have got extension of 9 years. Can you tell what is the specific reason why you have got the extension for 9 years? Is this due to plant life or any other reason? Can you please shed a light?
Speaker #2: Can you tell what is the specific reason why you have got the extension of nine years? Is it, like, due to plant life, or any other reason?
Speaker #2: Can you please shed some light?
Speaker #1: No, I can confirm, Mr. Rao, that the extension is not related to the useful life of the plant. When the RFP was issued by the off-taker, it provided options, and the maximum option available at the time was 9 years.
Abdullah Al Naimi: No, I can confirm, Mr. Rao, that the extension is not related to the useful life of the plant. When the RFP was issued by the off-taker, it provided options, and the maximum option that was available at the time was 9 years. It has absolutely nothing to do with the life of the plant. The plant's useful life, as you have seen in the financial statements, is 37 in total. Up until now, I think only 16 or 17 years have been utilized. So the plant will still have a good useful life for any potential extension beyond the existing PPA.
Abdullah Al Naimi: No, I can confirm, Mr. Rao, that the extension is not related to the useful life of the plant. When the RFP was issued by the off-taker, it provided options, and the maximum option that was available at the time was 9 years. It has absolutely nothing to do with the life of the plant. The plant's useful life, as you have seen in the financial statements, is 37 in total. Up until now, I think only 16 or 17 years have been utilized. So the plant will still have a good useful life for any potential extension beyond the existing PPA.
Speaker #1: It has absolutely nothing to do with the life of the plant. The plant's useful life, as you have seen in the financial statements, is 37 in total up until now.
Speaker #1: I think, over the end up until now, I think only 16 or 17 years have been utilized. So the plant will still have a good useful life.
Speaker #1: For any potential extension beyond the existing PPA.
Speaker #2: So, can we see another extension after the expiry in 2033?
[Analyst]: So can we see another extension after the expiry in 2033?
[Analyst]: So can we see another extension after the expiry in 2033?
Speaker #1: Well, the choice depends on the market condition and depends on the demand, but as I said, the demand is growing. The plant has a good useful life after the PPA, so the extension is one of the potential scenarios. Of course, we cannot predict the future with certainty, but given the trends now, given the growth in the demand, given the status and the useful life of the plants, we see a good potential for future PPA.
Abdullah Al Naimi: Well, it all depends on the market condition, depends on the demand. But as I said, the demand is growing. The plant has a good useful life after the PPA. So the extension is one of the potential scenarios. Of course, we cannot predict the future with certainty, but given the trends now, given the growth and the demand, given the status and the useful life of the plant, we see a good potential for future PPA. But again, this remains to be seen in the future.
Abdullah Al Naimi: Well, it all depends on the market condition, depends on the demand. But as I said, the demand is growing. The plant has a good useful life after the PPA. So the extension is one of the potential scenarios. Of course, we cannot predict the future with certainty, but given the trends now, given the growth and the demand, given the status and the useful life of the plant, we see a good potential for future PPA. But again, this remains to be seen in the future.
Speaker #1: But again, this remains to be seen in the future.
Speaker #2: Okay, one last question. You mentioned that you have got an insurance claim. Can you please elaborate on what type of insurance claim you have received during the period?
[Analyst]: Okay, one last question. You mentioned that you have got insurance claim. Can you please elaborate what type of insurance claim you got during the previous year?
[Analyst]: Okay, one last question. You mentioned that you have got insurance claim. Can you please elaborate what type of insurance claim you got during the previous year?
Speaker #1: Yes. Now, as it belongs to the market, in 2024, one of our team turbines at SMN Belka got damaged, and it was out of service up until February 2025.
Abdullah Al Naimi: Yes. Now, as it was closed to the market in 2024, one of our steam turbines at SMN Barka got damaged. It was out of service up until February 2025. So we do have insurance, plant property damage insurance. So we made sure that we put the insurance together and filed the claim with our insurance provider. Our claim was successful, and income was received, which was recorded in 2025, the H1, and that's what's making the difference.
Abdullah Al Naimi: Yes. Now, as it was closed to the market in 2024, one of our steam turbines at SMN Barka got damaged. It was out of service up until February 2025. So we do have insurance, plant property damage insurance. So we made sure that we put the insurance together and filed the claim with our insurance provider. Our claim was successful, and income was received, which was recorded in 2025, the H1, and that's what's making the difference.
Speaker #1: So we do have insurance, you know, plant property damage insurance. So we made sure that we put the insurance together and filed the claim with our insurance provider.
Speaker #1: Our claim was successful, and income was received, which was recorded in the first half of 2025. And that was making the difference.
Speaker #2: Okay. Does this claim include the property damage or the liquidated damages, like when the steam wires were damaged and you were not available to produce electricity, so you might have received the LD charge—liquidated damages charges—from the regulator?
[Analyst]: Okay. Does this claim include the property damage or the liquidity damage? When the steam was damaged, it was not available to produce electricity, so you might have got the LD charge, liquidated damages charges from the regulator. So does the insurance claim also cover revenue losses or only the property damage?
[Analyst]: Okay. Does this claim include the property damage or the liquidity damage? When the steam was damaged, it was not available to produce electricity, so you might have got the LD charge, liquidated damages charges from the regulator. So does the insurance claim also cover revenue losses or only the property damage?
Speaker #2: So does the insurance claim also cover revenue losses, or only the property damage?
Speaker #1: The nature of this insurance is called property damage and business interruption. Okay. So it covers you for two events. In the event of any breakdown in the plant, of course, there is a repair cost to the item, but there's also business revenue loss due to this GT being out of service for some time.
Abdullah Al Naimi: The nature of this insurance is called property damage and business interruption. So it covers you for two events. In the event of any breakdown in the plant, of course, there is a retail cost to the item, but there's also business revenue loss due to this STO being out of service for some time. So this insurance covers these two important elements, damage to the machine plus any revenue loss during the period. Of course, as you know, insurance, they have standard terms and conditions in the insurance market, including deductibles and exclusions. But it covers these two items, property damage and business interruption.
Abdullah Al Naimi: The nature of this insurance is called property damage and business interruption. So it covers you for two events. In the event of any breakdown in the plant, of course, there is a retail cost to the item, but there's also business revenue loss due to this STO being out of service for some time. So this insurance covers these two important elements, damage to the machine plus any revenue loss during the period. Of course, as you know, insurance, they have standard terms and conditions in the insurance market, including deductibles and exclusions. But it covers these two items, property damage and business interruption.
Speaker #1: So this insurance covers these two important elements: damage to the machine plus any revenue loss during the period. Of course, as you know, insurance has terms and conditions; they have standard terms and conditions in the insurance market, including deductibles and non-exclusions. But it covers these two items: property damage and business interruption.
Speaker #2: Understood. Thank you. Thank you for the answer. Thank you.
[Analyst]: Understood. Thank you for the answer. Thank you.
[Analyst]: Understood. Thank you for the answer. Thank you.
Speaker #1: Very good. You're very welcome. Of course, as I said, if there are any other questions, the floor is yours. Alternatively, we can close this session once again.
Abdullah Al Naimi: You are very welcome. You are very welcome. Of course, as I said, if there are any other questions, the floor is yours. Alternatively, we can close this session. Once again, I would like to thank you very much for your time to join us today. If you have any future questions, please feel free to reach out to us. We would like to thank you all, and have a great day. Thank you all.
Abdullah Al Naimi: You are very welcome. You are very welcome. Of course, as I said, if there are any other questions, the floor is yours. Alternatively, we can close this session. Once again, I would like to thank you very much for your time to join us today. If you have any future questions, please feel free to reach out to us. We would like to thank you all, and have a great day. Thank you all.
Speaker #1: I would like to thank you very much for your time in joining us today. If you have any future questions or queries, please feel free to reach out to us.
