Oman's OQ to List up to 49% Stake in Methanol, Ammonia and LPG Arm
11.05.2024 By Tank Terminals - NEWS

November 05, 2024 [Reuters]- Oman’s OQ Base Industries (OQBI), the methanol, ammonia and liquefied petroleum gas (LPG) arm of state-owned OQ, plans to list an up to 49% stake on the local stock exchange, it said on Monday, adding to a string of IPOs in the Gulf country.

 

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman – a small non-OPEC oil producer – to diversify its economy and cut its debt.

It would follow the flotation of OQ’s exploration and production business, which raised about $2 billion last month in the country’s biggest IPO ever.

OQBI is in talks with potential investors and working with bankers “to determine the fair price for the shares”, CEO Khalid Khalfan Al Asmi told Reuters, without providing further details.

Based in Salalah, home to Oman’s biggest port, OQBI operates three strategic divisions: methanol, ammonia and LPG products.

Methanol is a lower-carbon fuel while ammonia is mainly used in fertilisers and chemicals. LPG includes propane, butane, and cooking gas, which are used as fuel for cars, heating.

The company has a combined capacity of 1.8 million metric tons per annum of production (mtpa), with methanol accounting for around 1.1 mtpa of the total.

OQBI, which exports all of its produced methanol and ammonia and 87% of its LPG products, was leveraging its strategic location near major shipping lines, Al Asmi added.

It expects to pay a dividend of 32.7 million Omani riyals ($85 million) for 2024 and distribute a dividend at least 5% higher than this year’s payout for 2025 and 2026.

The company posted revenue of more than $500 million for the 12 months (LTM) to the end of June 2024, it said.

OQBI said that all the proceeds from the offering will be distributed to the selling shareholders, with the subscription period expected to start this month. The shares are expected to begin trading in December.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

UAE Invests Billions in AI to Diversify Economy Beyond Oil
11.13.2024 - NEWS
November 13, 2024 [Oil Price]- The United Arab Emirates’ state-owned energy giant Abu Dhabi Nat... Read More
Gulf Energy Transition: Assessing Saudi and Emirati Goals
11.13.2024 - NEWS
November 13, 2024 [The Washington Institute]- On October 29, during Saudi Arabia’s annual Futur... Read More
How will The Energy Sector Fare Under Donald Trump?
11.13.2024 - NEWS
November 13, 2024 [Investing Daily]- The energy sector experienced a notable boost following Dona... Read More
PNOC, Pertamina Partner on LNG Infrastructure, Supply Chain
11.13.2024 - NEWS
November 13, 2024 [Manila Bulletin]- State-run Philippine National Oil Company (PNOC) has signed ... Read More