Duqm Refinery Reports RO 106 Million EBITDA in 2025, Signifying Strong Recovery

Strong Financial Recovery for Duqm Refinery

The Duqm Refinery and Petrochemical Industries Company reported an EBITDA of approximately RO 106 million for the year 2025, marking a significant turnaround from the RO 124 million in losses recorded in 2024. This recovery reflects the refinery’s robust operational performance and its increasing cash-generation capabilities. Ashraf bin Hamad al Maamari, Group CEO of OQ Group, which holds a 50% stake in the joint venture with Kuwait Petroleum International, attributed this success to a comprehensive transformation strategy implemented by OQ8.

Al Maamari noted that the end of 2024 saw the completion of this transformation strategy, which included structural and commercial improvements that eliminated the need for additional shareholder funding. The financial surplus achieved by the refinery at year-end underscores the positive impact of these initiatives on both financial and operational efficiency.

Growth in Refining Capacity and Market Reach

The overall refining capacity in Oman has expanded to 569 thousand barrels per day, bolstered by the commissioning of the Duqm Refinery and enhancements at the Sohar and Mina Al Fahal refineries. This integrated production system allows OQ to distribute and market its products across more than 80 countries, solidifying its position as a leading player in the global energy sector.

Al Maamari highlighted the substantial achievements made at both OQ Refining and Petrochemical Industries Company and Duqm Refinery. Operational efficiency has improved significantly, with the processing of 93 million barrels of Omani crude projected for 2025, a marked increase from 86 million barrels in 2021. The first phase of the transformation plan, spanning from 2022 to 2024, is expected to yield cumulative profits of RO 474 million from 2021 to 2025.

Enhanced Production and Financial Performance

OQ Group’s upstream oil and gas companies have also seen a notable increase in production, with oil and condensate output rising from 109 thousand barrels per day in 2021 to over 224 thousand barrels per day in 2025, accounting for 14% of Oman’s total production. Additionally, OQ Trading has diversified its portfolio, expanding into fertiliser and ammonia markets, which has led to strong commercial results exceeding initial expectations.

The financial results for 2025 reflect this overall progress, with consolidated revenues reaching approximately RO 15.9 billion, up from around RO 9 billion in 2021. Concurrently, the group’s outstanding loan balance decreased significantly from about RO 5.3 billion in 2021 to approximately RO 2.8 billion by the end of 2025, indicating improved financial health.

Frequently Asked Questions

What was Duqm Refinery’s EBITDA for 2025?

Duqm Refinery reported an EBITDA of approximately RO 106 million in 2025.

How does the 2025 performance compare to 2024?

The refinery saw a significant recovery, moving from RO 124 million in losses in 2024 to a positive EBITDA in 2025.

What factors contributed to the refinery’s financial turnaround?

The turnaround was attributed to a comprehensive transformation strategy that improved operational efficiency and eliminated the need for additional funding.

How has Oman’s refining capacity changed recently?

Oman’s overall refining capacity has increased to 569 thousand barrels per day, supported by developments at the Duqm Refinery and other facilities.

What are the future prospects for OQ Group?

With improved production and financial performance, OQ Group is expected to continue strengthening its position in the global energy market.