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Oman's Nama Group Reported Increase in Power, Water Assets to $25bn

Nama Group, the umbrella organization of Omani state-owned power and water procurement, generation, transmission, distribution and supply entities, has reported a 42.6 per cent jump in the total value of the group’s assets to RO 9.5 billion at the end of last year.


The dramatic increase follows the inclusion into the group of new companies resulting from the restructuring of the country’s waste and wastewater sector – an exercise that was successfully completed in 2021. Following the restructuring, a new entity called Oman Water and Wastewater Services Company (OWWSC) – resulting from the amalgamation of the erstwhile Public Authority for Water (Diam) and Haya Water – was created and placed under the administrative banner of Nama Group. OWWSC oversees water and wastewater services across the Sultanate of Oman, with the exception of Dhofar Governorate.


At the same time, a new entity dubbed Dhofar Integrated Services Company (DISC) was created out of Salalah Sanitary Drainage Services Company and the Directorate General of Water in Dhofar, which were transferred to Dhofar Power Company (DPC). DISC is responsible for water and wastewater services, in addition to power supply, in Dhofar Governorate.


While posting an increase in the Group’s gross operating revenue in 2021, Nama Group recorded an overall net loss for the year, primarily on account of the inclusion of the new water and wastewater entities.


Hamdan al Shaqsi, Chairman – Nama Group, explained: “In terms of the financial performance, the gross operating revenue of the Group increased by 5.9 per cent from RO 1.3 billion in 2020 to RO 1.4 billion in 2021. The net profit after tax decreases from RO 62.8 million in 2020 to net loss after tax of RO 74.3 million in 2021. Due to the non-finalization of regulatory framework and price control mechanism, the water and wastewater sector was not able to fully recover its costs such as depreciation, employees, and other related expenses. This has resulted in the net losses of approximately RO 144.7 million for 2021,” he said.


“However, if the impact of net losses from water and wastewater sector excluded, the Group net profit would have been approximately RO 70.4 million for 2021,” he further noted in Nama Group’s 2021 Annual Report issued here recently.


Significantly, 2021 saw the electricity sector pulling back from the unprecedented slump in demand growth recorded during 2020 at the height of the pandemic. According to Al Shaqsi, electricity sales climbed 7.6 per cent to RO 35,674 GWh (gigawatt-hours) in 2021, up from 33,156 GWh a year earlier.


Electricity customers saw their numbers grow 3.3 per cent to 1.359 million last-year, up from 1.316 million in 2020.


The water and wastewater sector also grew by 5 per cent to 998,666 customers in 2021, up from 952,911 customers in 2020. Sales of water and wastewater volumes increased 7 per cent to 282.776 million m3, up from 264.037 million m3 in 2020.


“In keeping with the growth in the electricity, water and wastewater demand, efficiency targets and more importantly to meet our customer service targets, Nama Group invested RO 435 million in critical network and efficiency related investments in 2021,” the Chairman added.


Nama Holding, which is now part of Oman Investment Authority (OIA), groups together: Wadi Al Jizzi Power Company (WJPC), presently under decommissioning; Al Ghubrah Power and Desalination Company (GPDC), which also owns Manah Power Plant; Oman Electricity Transmission Company (OETC); Muscat Electricity Distribution Company (MEDC); Mazoon Electricity Company (MZEC); Majan Electricity Company (MJEC); Rural Areas Electricity Company (Tanweer); Dhofar Integrated Services Company (DISC); Oman Water and Wastewater Services Company (OWWSC); Oman Power and Water Procurement Company (OPWP); Numo Institute for Competency Development (NICD); and Nama Shared Services Company (NSS).


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