Late payments prompt 9% revenue drop for Oman’s Galfar
The construction firm’s total revenues fell to $329.7m in the first half of 2019 compared to $362.5m in H1 2018
Oman-headquartered construction firm Galfar Engineering & Contracting Co has reportedly posted a 9% drop in revenue due to late payments during the first half of 2019; this has resulted in project delays.
According to news publication Muscat Daily, Galfar’s financial report for the first half of 2019 revealed that total revenues decreased to $329.7m from $362.5m in H1 2018.
Galfar’s consolidated net profit from continued operations also dropped by more than 17% to $6.4m in the six months period ended June 30, 2019 compared to $7.7m in the corresponding period of the previous year.
Galfar reportedly said in a statement that delayed payments have caused a “strain” on cash flow for the business.
“The board and management continue to explore opportunities to reduce operating expenses, to maintain our competitiveness and to improve the financial results whilst strengthening the company’s financial position,” said the statement from the construction firm.
“The company resources are optimised continuously to align with the financial situation.”