Saturday 28 / March / 2026
Muscat: Energy companies operating in the field of electricity and water production and listed on the Muscat Stock Exchange (MSX) announced that they are to sign new power purchase agreements with Nama Power and Water Procurement Company. The new agreements are for a period of 15 years and will support the operational sustainability of the energy companies, enhance their financial stability and enable them to obtain stable revenues.
Al Suwadi Power, Al Batinah Power and Al Anqa Power said in separate disclosures published on the Muscat Stock Exchange website that they accepted the letter of assignment sent to them by Nama Power and Water Company earlier this month, noting that they are working with Nama Power to complete the final procedures for signing the agreements.
The agreements to be signed by Nama Power Company to purchase power and water with both Al Batinah Power Company and Al Suwadi Power Company will take effect from 1 April, 2028 after the expiry of the current agreements and will remain in force until 31 March, 2043. The agreement to be signed by Nama Power Company with Al Anqa Power Company will take effect on 1 April, 2029 immediately after the expiry of the current agreement and will remain in force until 31 March, 2044.
The signing of the new agreements comes within the framework of enhancing the reliability of the energy sector, especially during peak times, and meeting the increasing demand for electricity amidst the growth of industrial and commercial activities, population growth, and the increasing pace of urban development.
The signing of the agreements also comes at a time when solar and wind power projects are being accelerated as part of efforts to reduce carbon emissions. Last year witnessed a 5 percent increase in electricity production, bringing production to more than 51,000 gigawatt-hours, compared to 49,000 gigawatt-hours in 2024 and 43.9 thousand gigawatt-hours in 2023.
Energy companies currently have favourable power purchase agreements that will enhance their financial performance. The agreements extend until 2032 for Musandam Power Company, until 2033 for Dhofar Power Generation Company, Sohar Power Company and Barka Water and Power Company, until 2037 for Sembcorp Salalah Power and Water Company, until 2043 for Al Suwadi and Al Batinah companies, and until 2044 for Al Anqa Power Company.
The energy sector has witnessed positive developments over the past two years, with Nama Power and Water Procurement Company signing new agreements with electricity producers such as Sohar Power, Barka Water and Power Company, and Sembcorp Salalah, following the expiration of previous agreements. This has led to more stable supplies and ensured energy security. The signed agreements have positively impacted the performance of these companies.
Sohar Power, which signed a nine-year agreement in December 2024, stated that it began restarting its three open-cycle gas turbines in the last quarter of last year, in accordance with the new power purchase agreement. The company indicated that it expects to be able to fully repay the principal debt this year, allowing for the repayment of secondary debt and the distribution of profits to shareholders in subsequent years, provided the company's smooth operations continue. Sohar Power emphasised its commitment to further improving plant efficiency and enhancing competitiveness.
Sembcorp Salalah stated that the new agreement it signed last year will contribute to achieving sustainable value for shareholders and support the stability of the company's operational and financial business over the next decade.
Barka Water and Power Company reported that it was able to meet its obligations to its lenders last year through repayments. Debt service will be paid on schedule, amounting to OMR6.8 million during 2025, noting that it successfully achieved the annual performance test for the power plant and multi-stage desalination unit in March 2025, in accordance with the requirements of the Power and Water Purchase Agreement signed in 2024, which includes the purchase of the full capacity of the power generation plant for a period of 8 years and 9 months starting from June 2024.
There are 12 energy companies operating in the field of electricity and water production listed on the Muscat Stock Exchange. Most of these companies recorded an increase in their net profits during the past year. Preliminary aggregate data indicated that the 12 companies achieved net profits of OMR107.6 million during 2025, compared to OMR111.6 million in 2024.
Al Anqa Energy topped the list of companies in terms of total recorded profits of OMR26 million, followed by Sembcorp Salalah in second place with profits of OMR23.3 million, Sohar Energy in third place with profits of OMR16.7 million, Al Suwadi Energy in fourth place with profits of OMR16.3 million, and Al Batinah Energy in fifth place with profits of OMR15.3 million.
The market value of energy companies rose to OMR809.3 million by the end of last year, compared to OMR461.3 million at the end of 2024, recording gains of OMR348 million. This rise came amid demand for shares, increased company performance, and positive expectations for the future of companies in the coming years.
