Revenues at Oman LNG dropped 26% to $1.93 billion in 2016, as the collapse of crude prices continues to affect the oil and gas industry.
This is the third consecutive year Oman LNG is posting lower revenues.
Oman LNG recorded a net profit of just $566 million last year, down 43 percent from the year before.
“2016 was a challenging year for the oil and gas industry, due to the tumbling oil and gas prices, causing a significant slump in the company’s revenue and NIAT,” Oman LNG said in its latest annual report.
Oman LNG produced 8.5 million tonnes of the chilled fuel last year, against a production of 7.91 million tonnes in 2015.
The company exports LNG from its terminal in Qalhat near Sur with a 10.4 mtpa capacity.
According to the report, 133 cargoes were loaded from Oman LNG’s plant in Sur while Qalhat LNG loaded 42 cargoes.
Apart from regular long-term customers which are mainly located in Japan and South Korea, the company had delivered two spot cargoes of LNG to two regional destinations, namely Kuwait and Jordan.
Oman LNG’s Chief Executive Harib al Kitani said in the report that the company would continue to work on cost optimization such as contract optimization reviews and LEAN projects to cope with the industry downturn.
“Although gas prices will not see the highs of 2014 for a long time to come, it is possible, to go by a consensus of leading forecasts, that we may have entered a steady, if modest, rising price trajectory into the next decade,” he said.
Oman LNG is a joint venture company established by a Royal Decree in 1994. The company is owned by the government of Oman that has a 51 percent stake.
The Hague-based LNG giant Shell holds a 30 percent stake in Oman LNG.
France’s Total has a 5.54 percent stake, while Japan’s Mitsubishi Corp. and Mitsui & Co have 2.77 percent stake each. Korea LNG owns a 5 percent stake in Oman LNG, Partex (Oman) Corp a 2 percent stake and Itochu Corporation of Japan has a 0.92 percent stake in the LNG producer.
LNG World News Staff