The company is owned by OQ (69.9%), OETCL (0.1%), and LGI (30%), with a contracted power capacity of 120 MW that currently contributes a significant proportion of Oman's total MIS capacity. The power produced from the plant is fully contracted to OPWP pursuant to a long-term Power Purchase Agreement and meets the growing power demand of the Musandam Governorate.
Cyborg Score Rationale
Musandam Power has a stable, contracted revenue model with a long-term power purchase agreement and high plant reliability (~100%). However, growth is modest (4-7% YoY in 2025), and the company trades significantly below analyst valuations, reflecting market concerns about regional utilities and limited expansion upside.
Top Insights
First independent power plant in Musandam region provides monopoly-like position for regional electricity supply
High dividend yield of 10.42% reflects mature, cash-generative business model with stable long-term PPA
Plant utilization improving in 2Q-3Q 2025, indicating rising regional power demand despite modest overall revenue growth
Trading at 68.6% discount to estimated fair value per Simply Wall St, suggesting significant undervaluation or market skepticism
Named Competitors
Thermal Generation — State-owned power buyer and grid operator
Gas Turbine Power Plants — Alternative generation technology used by competing Omani utilities
Recent Developments
(January 2026) 4Q25 revenue grew 4% YoY to OMR 3.1mn, in line with expectations
(October 2025) 3Q25 revenue increased 6% YoY to OMR 7.1mn driven by higher plant utilization
(July 2025) 2Q25 revenue grew 7.3% YoY to OMR 6.6mn, ahead of expectations
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