Q2 2026 Muscat Gases Co SAOG Earnings Call
[Company Representative] (Muscat Gas): Assalamualaikum. Good morning, everybody. Welcome to MSF's discussion session Q2 2026. We will introduce one of us, Mr. Rahil Kantil. He is our CEO, and myself, is the accounting manager, and Sahil Basoli, he is the HR manager. We are going to present the financial state, the operating results for the period ended 30 June. We have Muscat Gases, which is the parent company. Our total revenue is OMR 10,879,000, and cost of sales is OMR 9.33 million, and gross profit is OMR 1.545 million. Whereas gross profit percentage is 14.21%. Other revenue, which is OMR 14,912. Operating cost, OMR 990,693. Operating profit, OMR 569,703. Administrative cost, OMR 493,932. Profit before tax is OMR 75,772. The tax, it is OMR 11,366. Profit after tax, OMR 64,406. When it comes to our subsidiaries, Al Noor Gas, we have revenue OMR 243,258. Cost of sales, it is OMR 242,265.
Speaker #1: Assalamualaikum. Good morning, everybody. Welcome to the MSX Discussion Session for Q2 2026. We will start with introductions. Mr. Galdul, our CEO, is here with us, as well as myself, the accounting manager.
Abdulsathar Ahmed: Good morning, everybody. Welcome to MSF's discussion session Q2 2026. We will introduce one of us, Mr. Khaldoun Dib. He is our CEO, and myself, is the Accounting Manager, and Sahil Bhosale, he is the HR Manager. We are going to present the financial state, the operating results for the period ended 30 June. We have Muscat Gases, which is the parent company. Our total revenue is OMR 10,879,000, and cost of sales is OMR 9.33 million, and gross profit is OMR 1.545 million. Whereas gross profit percentage is 14.21%. Other revenue, which is OMR 14,912. Operating cost, OMR 990,693. Operating profit, OMR 569,703. Administrative cost, OMR 493,932. Profit before tax is OMR 75,772. The tax, it is OMR 11,366. Profit after tax, OMR 64,406. When it comes to our subsidiaries, Al Noor Gas, we have revenue OMR 243,258. Cost of sales, it is OMR 242,265.
Speaker #1: And Salomon Zakli, he's the HR Manager. So we are going to present the financial state, the operating result for the period ended 30th June.
Speaker #1: We have Muscat Gases—this is the parent company. Our total revenue is $10,879,000, and cost of sales is $9.33 million. Our gross profit is $1.545 million.
Speaker #1: Gross profit percentage is 14.21%. Other revenue is 14,912 riyal. Operating cost is 990,693 riyal. Operating profit is 569,703 riyal. Administrative staff and administrative cost is 493,932 riyal.
Speaker #1: Profit before tax is 75,772 riyals. The tax is 11,366 riyals. Profit after tax is 64,406 riyals. When it comes to our subsidiaries, Alaman Gas, we have revenue of 243,258 riyals.
Speaker #1: Cost of sales is 242,265 riyal. Gross profit is 993 riyal, and gross profit margin is 0.41%. Operating profit remains the same. Administrative cost is 668 riyal.
[Company Representative] (Muscat Gas): Gross profit, it is OMR 993, and gross profit margin, 0.41%. Operating profit, it remains same. Administrative cost, OMR 658. Profit before tax, it is OMR 335. Tax, OMR 50, and profit after tax, OMR 285. There is another subsidiary company, it is Muscat Power Pioneer. The revenue, it is OMR 406,652, and cost of sales, it is OMR 331,559. Gross profit, it is OMR 75,093. Gross profit margin, it is 18.47%. Other income, it is OMR 9, and operating cost, it is OMR 153,050. Operating profit, it is operating loss actually, it is OMR 77,948. Administrative cost, OMR 26,088. Loss before tax, it is OMR 104,036, and loss after tax, it is OMR 104,036. When it comes to the other subsidiary, it is Muscat Power Solutions, Saudi Arabia. The revenue, it is OMR 522,365. Cost of sales, it is OMR 344,295. Gross profit, OMR 178,070.
Abdulsathar Ahmed: Gross profit, it is OMR 993, and gross profit margin, 0.41%. Operating profit, it remains same. Administrative cost, OMR 658. Profit before tax, it is OMR 335. Tax, OMR 50, and profit after tax, OMR 285. There is another subsidiary company, it is Muscat Power Pioneer. The revenue, it is OMR 406,652, and cost of sales, it is OMR 331,559. Gross profit, it is OMR 75,093. Gross profit margin, it is 18.47%. Other income, it is OMR 9, and operating cost, it is OMR 153,050. Operating profit, it is operating loss actually, it is OMR 77,948. Administrative cost, OMR 26,088. Loss before tax, it is OMR 104,036, and loss after tax, it is OMR 104,036. When it comes to the other subsidiary, it is Muscat Power Solutions, Saudi Arabia. The revenue, it is OMR 522,365. Cost of sales, it is OMR 344,295. Gross profit, OMR 178,070.
Speaker #1: Profit before tax is 335 riyal. Tax is 50 riyal. Profit after tax is 285 riyal. There's another subsidiary company; it is Muscat Power Pioneer.
Speaker #1: The revenue is 406,652 riyals, and the cost of sales is 331,559 riyals. Gross profit is 75,093 riyals. Gross profit margin is 18.47%.
Speaker #1: Other income, it is 9 riyal. And operating cost, it is 153 riyal 50 153,050 riyal. Operating profit, it is 77 operating loss, actually, it is 77,948 riyal.
Speaker #1: Administrative cost is 26,088 riyals. Profit or loss before tax is a loss of 104,036 riyals. Profit or loss after tax is a loss of 104,036 riyals. When it comes to the other subsidiary, it is Muscat Power Solutions, Saudi Arabia.
Speaker #1: The revenue is 522,365 riyals. Cost of sales, cost of sales is 344,295 riyals. Gross profit is 178,070 riyals. When it's coming, gross profit margin is 34%.
Abdulsathar Ahmed: When it is coming gross profit margin, 34%. Other income, it is OMR 73, and operating cost, it is OMR 108,088. Operating profit, it is OMR 70,055, and administrative cost, it is OMR 135,035. Loss before tax, it is OMR 64,980. Loss after tax, it is OMR 64,980. When it comes to the other subsidiary, it is the United Marketing Solutions. The revenue, it is OMR 40,973. Cost of sales, it is OMR 26,615. Gross profit, it is OMR 14,358. The gross profit margin, it is 35%. Operating cost, it is OMR 12,857. Operating profit, OMR 1,501. Administrative cost, it is OMR 7,247. Loss before tax is OMR 5,746. Loss after tax, it is OMR 5,746. When we just come to the consolidated figures, the revenue, it is OMR 12,092,000, and cost of sales, OMR 10.278 million. Gross profit, OMR 1.813 million.
[Company Representative] (Muscat Gas): When it is coming gross profit margin, 34%. Other income, it is OMR 73, and operating cost, it is OMR 108,088. Operating profit, it is OMR 70,055, and administrative cost, it is OMR 135,035. Loss before tax, it is OMR 64,980. Loss after tax, it is OMR 64,980. When it comes to the other subsidiary, it is the United Marketing Solutions. The revenue, it is OMR 40,973. Cost of sales, it is OMR 26,615. Gross profit, it is OMR 14,358. The gross profit margin, it is 35%. Operating cost, it is OMR 12,857. Operating profit, OMR 1,501. Administrative cost, it is OMR 7,247. Loss before tax is OMR 5,746. Loss after tax, it is OMR 5,746. When we just come to the consolidated figures, the revenue, it is OMR 12,092,000, and cost of sales, OMR 10.278 million. Gross profit, OMR 1.813 million.
Speaker #1: Other income, it is 73 riyal. And operating cost, it is 108,088 riyal. Operating profit, it is 70,055 riyal. And administrative cost, it is 135,035 riyal.
Speaker #1: Profit loss before tax is 64,980 riyals. Loss after tax is 64,980 riyals. When it comes to the other subsidiary, it is United Marketing Solution.
Speaker #1: The revenue, it is 40,973 riyal. Cost of sales, it is 26,615 riyal. Gross profit, it is 14,358 riyal. The gross profit margin, it is 35%.
Speaker #1: Operating cost is 12,857 riyals. Operating profit is 1,501 riyals. Administrative cost is 7,247 riyals. Profit before tax, or rather, loss before tax, is 5,746 riyals.
Speaker #1: Loss after tax, it is 5,746 riyal. When it is come to the consolidated figures, the revenue, it is total revenue, it is 12,012,092,000 riyal.
Speaker #1: And cost of sales, 10.278 million riyals. Gross profit, 1.813 million. And gross profit margin is 15%. Other revenue, 14,995 riyals. Operating cost, 1.264 million.
[Company Representative] (Muscat Gas): The gross profit margin is 15% and other revenue OMR 14,995. Operating cost OMR 1.264 million. Operating profit OMR 564,304. Administrative cost, it is OMR 662,960. Loss before tax, it is OMR 98,656. The income tax, it is OMR 11,416. The loss after tax, OMR 110,072. Is anybody having any questions? Please. Our CEO will explain about our business plan and what is the current situation in general.
Abdulsathar Ahmed: The gross profit margin is 15% and other revenue OMR 14,995. Operating cost OMR 1.264 million. Operating profit OMR 564,304. Administrative cost, it is OMR 662,960. Loss before tax, it is OMR 98,656. The income tax, it is OMR 11,416. The loss after tax, OMR 110,072. Is anybody having any questions? Please. Our CEO will explain about our business plan and what is the current situation in general.
Speaker #1: Operating profit, 564,304 riyal. Administrative cost, it is 662,960 riyal. Loss before tax, it is 98,656 riyal. And income tax, it is 11,416 riyal. And loss after tax, 110,072 riyal.
Speaker #1: Does anyone have any questions? Please ask your question. Our CEO will explain our business plan and discuss the current situation in the world.
Speaker #2: Thank you. Thank you, ladies and gentlemen, for attending this session. This is, in fact, my first session as CEO for Muscat Gas. I'll give you a brief history of the last six months.
Rahil Kantil: Thank you. Thank you, ladies and gentlemen, for attending this session. This is in fact my first session as CEO for Muscat Gas. I will give you a brief history on the last six months. In March 2026, March to April 2026, there was a change of control. Blue Gas, Al Wahaj Alazrak for Manufacturing, acquired a controlling shareholding in Muscat Gas. It was a stake purchase from Takamul Investment Company and Oman Oil Company. Accordingly, in April, there was a change in management in April 2026. As per the CMA regulation, there was also a mandatory tender offer made by Blue Gas to the other shareholder. That was completed maybe in July of this 2026. Currently, Muscat Gas has a new management and a new board.
Khaldoun Dib: Thank you. Thank you, ladies and gentlemen, for attending this session. This is in fact my first session as CEO for Muscat Gas. I will give you a brief history on the last six months. In March 2026, March to April 2026, there was a change of control. Blue Gas, Al Wahaj Alazrak for Manufacturing, acquired a controlling shareholding in Muscat Gas. It was a stake purchase from Takamul Investment Company and Oman Oil Company. Accordingly, in April, there was a change in management in April 2026. As per the CMA regulation, there was also a mandatory tender offer made by Blue Gas to the other shareholder. That was completed maybe in July of this 2026. Currently, Muscat Gas has a new management and a new board.
Speaker #2: So, in March 2026, March April 26, there was a change of control and Blue Gas is a for manufacturing acquired a controlling shareholder, shareholder short holding in, in Muscat Gas.
Speaker #2: And, it was a stake purchase from Takamel Investment and Oman Oil Company. And accordingly, in April, there was a change in management—a change in management in April 2026.
Speaker #2: And as per the FSA regulation, there was also a mandatory tendering offer made by Blue Gas to the other shareholders. And that was completed mainly in July or July-August 2020, 26.
Speaker #2: So currently, Muscat Gas has a new management and a new board. Accordingly, we are currently doing a comprehensive strategic review, which is underway.
Rahil Kantil: We are currently doing a comprehensive strategic review as underway across all the portfolio and operating models of the company, and also introducing new revenue streams. By November 2026, we will introduce a new strategy for Muscat Gas that will preserve its core business, the LPG business, and add to it new revenue streams coming accordingly. There will be an organizational structure, and we are going to have a review on the governance and the controls and the commercial capabilities. We hired a new CFO coming on board very soon. This restructuring also will start as we get the board blessing in November 2026. There will be new revenue streams. We are already working on them. They will be announced accordingly once we arrive at the signature stage for the new projects, and these projects will be announced to the market in due time.
Khaldoun Dib: We are currently doing a comprehensive strategic review as underway across all the portfolio and operating models of the company, and also introducing new revenue streams. By November 2026, we will introduce a new strategy for Muscat Gas that will preserve its core business, the LPG business, and add to it new revenue streams coming accordingly. There will be an organizational structure, and we are going to have a review on the governance and the controls and the commercial capabilities. We hired a new CFO coming on board very soon. This restructuring also will start as we get the board blessing in November 2026. There will be new revenue streams. We are already working on them. They will be announced accordingly once we arrive at the signature stage for the new projects, and these projects will be announced to the market in due time.
Speaker #2: Across all the portfolio and operating models of the company, and also introducing new revenue streams. And by November 2026, we will introduce a new strategy for Muscat Gas.
Speaker #2: That will preserve its core business, the LPG business, and adds to it new revenue streams coming accordingly. And there will be an organizational structure in place, and we're going to have a review on governance, controls, and commercial capabilities.
Speaker #2: We are currently also—we hired a new CFO, coming on board very soon. And this restructuring also will start, as we get the board's blessing in November 2026.
Speaker #2: There will be new revenue streams. We are already working on them, and they will be announced accordingly once we arrive at the signature stage.
Speaker #2: There will be projects, and these projects will be announced to the market in due time. We hope that by the end of this year, we will have a positive result for the group.
Khaldoun Dib: We hope that by the end of this year, we will have a positive result for the group, according to our projections. Currently, we are working in two levels. One is improving the cash flow of the company by looking at the operating working capital and minimizing the exposure to the market when it comes to receivables and also managing properly our vendors and payers. At the same time, we are looking at improving our pricing and our pricing condition and sales condition across the market in order also to address the revenue issues. That is in a nutshell what we are doing currently in Muscat Gas. I hope I will get you more details in the next round. There will be more details as much as we can disclose in this manner. Thank you. Thank you so much. If you have any questions, please let us know.
Rahil Kantil: We hope that by the end of this year, we will have a positive result for the group, according to our projections. Currently, we are working in two levels. One is improving the cash flow of the company by looking at the operating working capital and minimizing the exposure to the market when it comes to receivables and also managing properly our vendors and payers. At the same time, we are looking at improving our pricing and our pricing condition and sales condition across the market in order also to address the revenue issues. That is in a nutshell what we are doing currently in Muscat Gas. I hope I will get you more details in the next round. There will be more details as much as we can disclose in this manner. Thank you. Thank you so much. If you have any questions, please let us know.
Speaker #2: According to our projections, and currently, we are working on two levels. One is improving the cash flow of the company by looking at the operating working capital and, you know, minimizing the exposure to the market when it comes to receivables.
Speaker #2: And also managing properly our vendors and payments. At the same time, we're looking at improving our pricing and our pricing conditions and sales conditions across the market in order also to address the revenue issues.
Speaker #2: That's, in a nutshell, what we are doing currently in Muscat Gas. I hope I will get you more details in the next round.
Speaker #2: There will be more details, as much as we can disclose, in this matter. Thank you. Thank you so much. And if you have any questions, please let us know.
Speaker #1: You know, one minute. Okay.
Rahil Kantil: In one minute. Okay. We have received the question. The question is that the parent Muscat Gases Company business remained profitable, yet the group reported a consolidated net loss. Explain whether these issues are temporary or structural, or outline the expected timeline for returning the group to consolidated setting. Thank you for the question, Amira. The thing with the two operating entities, MGP and Muscat Power Solutions, their main work is in projects, and they had a major delay due to disruption in the supply chain. That major delay in the disruption in the supply chain ended up with less generation of invoice to the client. We do expect that we will have a correction, and it will be recovered by Q3 and Q4. We are working very hard on the issue of the supply chain since it is a general issue. It is not something specific to Muscat Gas.
Khaldoun Dib: In one minute. Okay. We have received the question. The question is that the parent Muscat Gases Company business remained profitable, yet the group reported a consolidated net loss. Explain whether these issues are temporary or structural, or outline the expected timeline for returning the group to consolidated setting. Thank you for the question, Amira. The thing with the two operating entities, MGP and Muscat Power Solutions, their main work is in projects, and they had a major delay due to disruption in the supply chain. That major delay in the disruption in the supply chain ended up with less generation of invoice to the client. We do expect that we will have a correction, and it will be recovered by Q3 and Q4. We are working very hard on the issue of the supply chain since it is a general issue. It is not something specific to Muscat Gas.
Speaker #2: Yeah, so basically, we have received the question. The question is: Did the current Muscat Gas Company business remain profitable? Yes, the group reported a consolidated net loss.
Speaker #2: Explain whether this issue is temporary or structural, or outline the expected timeline for returning the group to consolidated profitability. Thank you for the question, Amira.
Speaker #2: The thing would be operating the two operating entities, MPP and MPS. Their main work is in projects, and they had a major delay due to disruption in the supply chain.
Speaker #2: And that major delay in the disruption of the supply chain ended up with less generation of invoices to the client. We do expect that we will have a correction, and it will be recovered by Q3 and Q4.
Speaker #2: And we're working very hard on the issue of the supply chain, since it's a general issue. It's not something specific to Muscat Gas.
Speaker #2: And we had to digest some logistics and shipping costs into our projects. And also, we're working in that sense. Hopefully, by the end of the year, we will have a correction.
Rahil Kantil: We had to digest some logistics and shipping costs into our projects. Those who are working in that sense, hopefully by the end of the year, we will have a correction. If anyone has a question, please let us know. Otherwise, we are going to end this meeting in one minute. Five minutes? Five minutes. Thank you again for attending this meeting. Hopefully, we will meet in the next period. Thank you so much for your attention. We will see you next time. Take care.
Khaldoun Dib: We had to digest some logistics and shipping costs into our projects. Those who are working in that sense, hopefully by the end of the year, we will have a correction. If anyone has a question, please let us know. Otherwise, we are going to end this meeting in one minute. Five minutes? Five minutes. Thank you again for attending this meeting. Hopefully, we will meet in the next period. Thank you so much for your attention. We will see you next time. Take care.
Speaker #1: If anyone has a question, please let us know. Otherwise, we're going to end this meeting in about five minutes. Thank you.
Speaker #2: Thank you again for attending this meeting, and hopefully we'll meet in the next period. Thank you so much for your attention, and we'll see you next time.
