OQEP profit increased strongly during the first half of 2026 as higher oil prices supported Oman’s state energy company. Rising sales volumes also helped strengthen revenue and earnings during the period.
OQ Exploration & Production reported revenue of OMR686 million for the first six months. That figure represented a 12% increase compared with the same period last year. The company also recorded stronger oil and condensate sales during the period. Combined sales volumes reached 11.6 million barrels during the first half.
The sales volume represented a 3% increase from the previous year’s comparable period. Meanwhile, the average realised oil price climbed 8% to $80.90 per barrel. Higher prices and stronger production provided important support for the company’s financial performance. Consequently, OQEP recorded substantial growth across several key financial measures.
Net profit reached OMR199 million during the first half of 2026. The figure marked a 19% increase compared with the same period last year. Effective cost management also contributed to the stronger result. The company maintained operational efficiency while increasing production and managing expenses.
OQEP chief executive Mahmoud Al Hashmi credited reliable operations and higher commodity prices. He also highlighted increased production as another major factor behind the performance. The company achieved these results despite challenges affecting regional energy transportation.
Disruptions around the Strait of Hormuz created additional pressure on tanker movements. However, Oman experienced relatively limited disruption compared with several other countries. OQEP continued maintaining its operations despite the challenging regional environment.
Cash flow from operations also recorded significant growth during the period. Operating cash flow increased 14% compared with the first half of 2025. Meanwhile, OQEP continued investing in its oil and gas assets. Capital expenditure reached OMR132 million during the year to date.
Most of that investment supported expansion across existing energy assets. The company spent approximately OMR128 million on oil and gas development. OQEP also allocated around OMR3.5 million toward exploration activities. These investments could support production capacity and future growth across its portfolio.
The company also announced dividend payments for shareholders. OQEP plans to distribute a base dividend of OMR58 million for the second quarter. The payment will take place in September. In addition, the company announced a performance-linked dividend worth OMR38.5 million.
Together, the distributions highlight the company’s strong cash generation during the first half. They also provide shareholders with additional returns following the improved financial performance. The dividend plans could further increase investor interest in the company’s shares.
OQEP has traded on the Muscat Stock Exchange since October 2024. Its listing has given investors direct exposure to Oman’s upstream energy sector. The company’s shares closed at OMR0.475 on Sunday. That represented a 1% daily increase.
The stock has also delivered a significant gain since the beginning of 2026. Shares have climbed approximately 31% so far this year. The increase reflects stronger investor interest in the company’s financial outlook. It also comes as energy markets continue responding to changing global conditions.
OQ Group remains the company’s largest shareholder. The group owns 75% of OQEP through its ownership structure. OQ Group operates under the Oman Investment Authority. Therefore, OQEP remains closely connected to Oman’s broader state energy investment strategy.
The company’s latest results underline the importance of oil prices for regional energy producers. Higher commodity prices can quickly improve revenue when production remains stable or increases. At the same time, companies must continue managing costs and capital spending.
Maintaining financial discipline can help protect profitability when energy markets become more volatile. OQEP’s first-half results show how higher prices and production can strengthen earnings. The company also demonstrated continued investment despite regional transportation challenges.
Looking ahead, commodity prices will remain an important factor for the company’s financial performance. Production levels, operating costs, and global energy demand will also influence future results. Market movements could therefore affect earnings during the remainder of 2026.
For investors, the latest figures highlight OQEP’s improving profitability and cash generation. Stronger earnings could also support continued investment across Oman’s energy sector. The company may continue balancing shareholder returns with spending on future production.
OQEP profit remains closely linked to market conditions and operational performance. The company’s latest results provide a positive start to the second half of 2026. Continued investment could help strengthen its position within Oman’s energy industry.
As Oman develops its energy resources, OQEP could play an important role. Further investment may help the company expand production and strengthen its long-term position. For now, OQEP profit growth reflects higher prices, stronger sales, and effective cost management.
