Fall in Energy Development Oman Revenues

Energy Development Oman SAOC (EDO) — the wholly government-owned energy sector holding company — reported total revenues and other income of US$7.44 billion for the six-month period ended June 30, 2025, compared to US$8.28 billion for the same period in 2024. The decline reflects lower crude and condensate revenues, partially offset by stable gas income. Announcing its unaudited interim condensed consolidated financial results for the period, EDO — an affiliate of the Ministry of Finance — stated that crude oil revenue amounted to US$5.50 billion (versus US$6.05 billion of H1 2024), with receivables of US$1.09 billion as at June 30, 2025. Non-associated gas (NAG) revenue stood at US$931.8 million (H1 2024: US$934.3 million), with receivables of US$338.8 million. Condensate revenue totalled US$996.2 million (H1 2024: US$1.26 billion), with receivables of US$317.8 million. Other operating income amounted to US$10.3 million (H1 2024: US$34.7 million). Finance income remained stable at US$4.4 million. On the expenditure side, production expenses declined to US$570.5 million from US$624.6 million a year earlier, while royalty expenses fell to US$2.71 billion (H1 2024: US$3.00 billion). Depreciation, depletion and amortisation amounted to US$2.17 billion, compared with US$2.31 billion in 2024. During the period, EDO also recognised a one-off provision of US$411.0 million for the settlement of net retirement benefit assets.

As a result, profit before interest and tax (EBIT) was US$1.56 billion, down from US$2.03 billion in the corresponding period of 2024. Finance costs decreased to US$251.8 million (H1 2024: US$374.9 million), reflecting improved debt management. Profit before tax stood at US$1.31 billion, compared with US$1.65 billion in the previous year. After accounting for income tax expenses of US$1.28 billion, net profit for the period was US$28.8 million, compared to US$101.7 million in H1 2024. Including a US$35.4 million gain from the re-measurement of pension fund obligations, total comprehensive income for the first half of 2025 was US$64.2 million, versus US$169.0 million a year earlier. Established by Royal Decree in December 2020, EDO owns 60% of the Block 6 Petroleum concession operated by Petroleum Development Oman (PDO), 100% of Block 6’s non-associated gas concession and 100% of Hydrogen Oman (Hydrom), the master planner of the Sultanate of Oman’s green hydrogen industry. Other affiliates of EDO include Oman New Energies SPC (ONE), incorporated to explore future power-related business but currently not operational; and EDO Gas SPC (GasCo), which assumed the participating interest in the Gas Operations of Block 6 from EDO effective July 1, 2023. In June 2023, GasCo established EDO Sukuk Limited, a special purpose vehicle created to act as issuer and trustee of the Sukuk trust certificates under the trust certificate issuance programme. Also part of the EDO Group are: EDO InfraCo SPC, which is currently non-operational; and ECO SPC, a wholly owned subsidiary established in September 2024 to handle the inventory of surplus and scrap equipment and materials from operations under the Block 6 Petroleum Agreements, the Block 6 Gas Concession Agreement; and other oil and gas operations in the Sultanate of Oman.