(MENAFN) Oman LNG, a major player in the liquefied natural gas (LNG) industry, reported a significant decline in net profits by 21 percent over the past year, amounting to USD1.5 billion. Despite maintaining robust production levels of 11.5 million metric tons for the second consecutive year, the company faced challenges in maintaining profitability.
The annual report for 2023, released on Tuesday, highlighted that LNG production slightly exceeded the company's enhanced production capacity of 11.4 million tons annually. However, despite this achievement, revenues for the year 2023 stood at USD4.9 billion, marking a notable decrease from USD5.8 billion recorded in the previous year.
While the report did not provide specific reasons for the decline in profits, it noted that global gas prices experienced a downturn following the turmoil triggered by the outbreak of war in Ukraine, which had led to record-high prices in 2022. This external factor likely contributed to the challenging operating environment faced by Oman LNG during the reporting period.
The annual report also shed light on the performance of Qalhat LNG Company, which merged with Oman LNG Company in 2013. Qalhat LNG Company achieved revenues of USD2.4 billion in the past year, contributing to the overall financial landscape of the combined entity.
Despite the profitability challenges, Oman LNG maintained its commitment to delivering LNG shipments, with a total of 173 shipments in the past year, slightly lower than the 176 shipments recorded in 2022. Additionally, the company delivered 31 shipments of natural gas liquids as part of its operational activities.
In terms of sales distribution, Oman LNG reported that 94 percent of its sales were conducted through contracts, highlighting the stability provided by long-term agreements. The remaining six percent of sales were attributed to spot sales, reflecting the company's flexibility in adapting to market dynamics.
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