Gulf Hotels (Oman) Company Limited SAOG (GHOS) Earnings Call Transcript

[Foreign Language] Welcome to MSX discussion session on audited annual financial results of Gulf Hotels (Oman) Company Limited SAOG for the year ended 31 December 2024. These audited financial results are already published on MSX portal. I am Yogish Mallya I'm a Compliance Officer and Executive Secretary to the Board. And with me, [ Mr. Daniyal Kazim ] he is the Director of Finance. So we welcome you all the participants to this discussion session and Mr. Daniyal will start with the financial results.

Good morning, everyone. We'll start with the statement of comprehensive income. Our total revenue for 2024 was OMR 7.6 million compared to 2023, OMR 7.4 million. Profit from operations for 2024, OMR 1.07 million, 2023 was OMR 777,000 and net profit and total comprehensive income for the year, OMR 872,000 for 2024 and OMR 668,000 for 2023. Thank you.

So we will move on to the statement of our financial position. As you can see, the property, plant and equipment, there is a slightly decrease because of depreciation and not much assets were added during the year 2024. There was a term deposit placed during the year 2024 of OMR 500,000; bank balances and cash is OMR 1.304 million compared to last year's OMR 1.282 million. So the cash and cash equivalents, including the term deposit was OMR 1.804 million compared to OMR 1.282 million of 2023. Coming to equity and liabilities, our retained earnings as at 31st December 2024 is OMR 1.879 million compared to OMR 1.3450 million of 2023. So the term loan, which was there in 2023, we have completely repaid and there are no term loans outstanding for the year ended 31st December 2024. The net assets per share is OMR 7.330 compared to OMR 7.175 of 2023. This is the statement of changes in equity. So in 2024, we have paid a dividend of 10% or OMR 342,832. This is for the year 2023 and paid in 2024. So after net profit of OMR 0.872 million is added, our retained earnings has increased to OMR 1.879 million. We'll move on to statement of cash flow. As you can see, the net cash generated from operating activities is OMR 1.465 million compared to last year's OMR 1.610 million. Cash flow from investing activities is OMR 735,000. This is the outflow of OMR 735,000 compared to last year's OMR 158,000. Cash flow from financing activities, which represents a dividend paid, term loan repaid and other payments, the net outflow is OMR 709,000 compared to last year's OMR 905,000. So there is not much change in increase in cash and cash equivalents during the year. And the cash and cash equivalents at the end of year is OMR 1,304,000 compared to OMR 1,282,000 million. So the cash and cash equivalents, including the term deposit will be OMR 1.804 million compared to last year's OMR 1.282 million. We'll now move on to the split of total revenue, which is compounded average, it is OMR 3.874 million compared to OMR 3.9245 million. Room revenue is OMR 3.4569 million compared to OMR 3.350 million. Other income is OMR 175,744 compared to OMR 172,927. The total revenue is OMR 7.658 million compared to last year's OMR 7.448 million. Occupancy was 73.8% during the year 2024 compared to last year's occupancy of 72.2%. And the ADR is 63.2% compared to 60.8%. So there is an increase in occupancy and ADR during the year, which has resulted in increase of room revenue from OMR 3.350 million to OMR 3.568 million. And there is a slight downtick in food and beverage revenue during the year, mainly due to opening of new hotels and new F&B outlets in Muscat, which has impacted our F&B revenue. So with this, we have come to the end of our financial results presentation. We'll be happy to answer if there are any questions from the participants.

I have a question. Can you provide the number of keys and the total number of rooms that were available this year as well as has it changed from the previous year?

No, there was no change in number of rooms. It's 200 rooms available in Crowne Plaza.

And regarding the occupancy, do you expect that to be improvement? Or would it be around the same levels as last year?

This -- I didn't get your question. You're talking about 2025 or?

Yes.

We are actually not allowed to make any forward-looking statements. But -- yes, we hope that there will be some increase and most of it depends on how the things develop in GCC and how the things will stabilize and whether there is going to be a better connectivity to most of the European destinations. So -- and if there are some special events in Oman planned. So occupancy will depend on these things. But overall, we feel that 2025, hopefully, is a better year to compared to 2024 and also specific to our property. We have already made some disclosures regarding the closure of the hotel for 3 months for hotel rooms renovation project in 2025. From June to -- June, July, August, for the 3 months.

Yes. Regarding that as well, I have a question. So what would be the impact on the revenue because of the closure?

We have -- for example, we have -- at the moment, what we can say is that there will not be any revenue because the total -- it is a total closure of the hotel for 3 months. So it will be a closure of rooms and also the F&B outlets. This is primarily to give the contractor full access to the hotel so that we can complete it within the planned schedule period.

Okay. So how much of this currently has contributed to the total revenue? At present, how much is it contributing?

No, we cannot anticipate what is going to be the future revenue for these months.

No, no, for 2024 and previous years how was it -- how much has...yes.

The planning for the renovation started long back. And during that time, the idea was to give access to the contractor, during a period when our occupancy and our revenue is the lowest. So these months of 3 months are the period when it is a summer months and our occupancy typically in the last 3, 4 years is the lowest. I mean the period of September to April, is our high occupancy and high revenue period.