Shell Oman Marketing Company (SOMS) reported its headline figures for 1Q2016. The company posted net profit of OMR4.0 million (+55% Y-o-Y, +13% Q-o-Q), which came in 9% ahead of our estimate despite revenue coming in 9% below our estimate (-9%). SOMS reported revenue of OMR83.7 million (+4% Y-o-Y, flat Q-o-Q).   Our view: A resilient set of earnings for the quarter, which is a continuation of the company’s strong earnings posted over the past three quarters, supported by robust margins from its retail and lubricants division. As expected, the fuel subsidy cut did not have an impact on its earnings directly as it was able to pass on the full impact to its customers. We conservatively estimate the new tax regime and marginal impact from the subsidy cut (through demand weakness) to put some pressure on its 2016 earnings estimates. We have a Neutral rating on SOMS. (Sameer Kattiparambil, company)