Production of ammonia and liquefied petroleum gas (LPG) by OQ Base Industries (OQBI) climbed to new highs in 2025, marking the latest in a succession of annual operational milestones achieved by the majority state-owned integrated petrochemicals company.
Ammonia output topped a record 343,000 metric tonnes (MT) in 2025, while LPG production reached 366,000 MT, representing the “highest yearly production level since commissioning”, said Khalid al Asmi, CEO of OQBI.
“This performance was supported by significant improvements in asset availability and reduced downtime, driven by the continued impact of ongoing plant reliability initiatives”, he added in the company’s Management’s Discussion and Analysis Report for 2025.
Publicly traded OQBI, part of OQ Group, is the Sultanate of Oman’s only integrated producer of methanol, ammonia and LPG, operating with a combined nameplate production capacity of 1,816 kilo tonnes per annum (ktpa).
The integrated complex is located in the Salalah Free Zone (SFZ) in Dhofar Governorate.
The company operates three core business divisions — Methanol, Ammonia and LPG Products — while reporting financially under two segments: the Methanol Plant (which includes the ammonia plant’s results) and the LPG Plant. It runs a 1,095 ktpa methanol facility producing a key industrial chemical and cleaner-burning fuel; a 365 ktpa ammonia plant supplying feedstock for fertilisers and various industrial and energy applications; and a 356 ktpa LPG plant manufacturing propane, butane, condensate and cooking gas for energy use. Around 90 per cent of LPG output is exported, with the remainder sold domestically as cooking gas.
OQBI maintained strong production utilisation levels in 2025, with overall plant utilisation rising to 107 per cent compared with 106 per cent in 2024, underscoring sustained operational efficiency across its facilities.
The methanol plant continued to operate above nameplate capacity, recording utilisation of 113 per cent, marginally lower than 114 per cent in the previous year. The ammonia plant showed improvement, increasing utilisation to 103 per cent from 100 per cent in 2024, reflecting enhanced output performance.
Meanwhile, the LPG plant also registered a slight uptick in efficiency, with utilisation reaching 106 per cent versus 105 per cent a year earlier. Overall, the figures indicate stable and optimised plant operations, with all units operating above 100 per cent of nameplate capacity.
On the financial front, OQBI reported higher net earnings despite a decline in revenues compared to the previous year. On a consolidated basis, revenue stood at RO 226.0 million in 2025, down from RO 234.8 million in 2024. Cost of sales declined to RO 162.4 million from RO 166.6 million, resulting in a gross profit of RO 63.5 million, compared with RO 68.2 million in the prior year.
Operating profit stood at RO 51.6 million, slightly lower than RO 54.9 million in the previous year. As a result, consolidated net profit increased to RO 47.7 million in 2025, up from RO 40.4 million in 2024.
The decline in OQBI Group’s revenue was mainly driven by LPG products (propane, butane and condensate), where revenue fell by RO 8.2 million due to a 7.5 per cent drop in average selling prices and a 2.7 per cent reduction in volumes sold.
Source:
Oman Observer
