Rising costs at OQ Gas Networks trim first-quarter profit

Net profit at state-owned OQ Gas Networks (OQGN), the pipeline subsidiary of Oman energy major OQ, dropped by 7 percent in the first three months of 2025, as the company was hit by higher operating costs.

Net income fell to OR12.6 million ($33 million) in the year to March 31. 

Total expenses in the same period rose 5 percent year on year to OR24.7 million, according to the company’s disclosure in the Muscat Security Market.

OQGN, which owns and operates the Gulf state’s 4,000km gas pipeline grid, announced earlier this week that it will jointly develop the infrastructure to transport hydrogen across the sultanate with Fluxys, a Belgian energy infrastructure group.

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• Oman and its foreign energy partners

Fluxys owns a 5 percent stake in OQGN, acquired in the latter’s initial public offering in October 2023.

Last month, OQGN announced plans to build a dedicated hydrogen pipeline by 2030, with funding approval for the 300-400 km project expected by 2027.
OQGN shares closed at OR0.142 on Wednesday, up 4 percent in the year to date.