Al Hassan nine-month contract income up on 2010

Al Hassan competes for energy projects, among others.

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Al Hassan Engineering Company saw contract income for the first nine months of the year rise 13.2% against the same period last year, though higher costs saw bottom-line profits slip slightly.

The Omani contractor said it reaped OR 44.58m from projects over the period, up from OR 39.5m last year, with an added boost from other income streams, the company told investors in its periodic financial statements. But costs rose to OR 42.3m from OR 36.9m to leave net profits at OR 1.7m against OR 1.709m.

Al Hassan Engineering, listed on the Muscat Securities Market, competes for contracts across oil and gas, utilities and infrastructure projects as well as industrial work in Oman and the UAE. Third quarter earnings were bolstered by two major contract wins - the OR 3.9m Shuweihat 3,400kV substation contract in Abu Dhabi, awarded by Siemens, and an OR 14.72m EPC mandate for a gas compression facility at Zauliya from Petroleum Development Oman.

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“Your company expects that contract income will further increase in the balance period of 2011 as a number of major projects will reach their completion phase,” Hassan bin Ali Salman, chairman, told investors.

The contractor is seeing a number of projects continue construction or near completion. These include an EPC mandate to build the Amal Power project for PDO, which is expected to be finished by the end of the year; the Nimr-C Full Field Water Injection Project, which has been commissioned; and a civil, building and overhead line works mandate for Saih Niyadha Depletion Compression Works, a project in which it is working with Korea’s GS Engineering.

Inventory rose to OR 5.1m against OR 4.55m last year, with the value of work-in-progress rising 11.5% to OR 19.3m.

“Future prospects look positive with your company actively participating in the associated marketing, tendering and sales processes,” Salman added.

Al Hassan shares have leapt 7.3% to 235 baisa since the end fo last week. They have mostly fallen over the year.