Oman's Galfar delays salaries amid overdue payments from 'big clients'
The Omani contractor has been actively working with its clients and the banks to overcome the current cash shortfall
Muscat Securities Market-listed Omani contracting giant, Galfar Engineering and Contracting — which recently won a $24m (OMR9.2m) initial infrastructure contract to work on the 52km2 Khazaen economic city — has said that the delay in salary payments has been experienced due to the “prolonged payments of the company’s overdue payments by its big clients for very long periods”.
In a stock market filing undersigned by the chief executive officer of Galfar Engineering and Contracting, Hans Erlings, the company said: “The company is actively working with its clients and the banks to overcome the current cash shortfall and is committed to pay all salaries during next week.”
The news comes just days after the Omani contractor was awarded a $3.6m (OMR1.4m) contract to provide engineering, procurement, and construction (EPC) services for Daleel Petroleum, which covered free-water knockout (FWKO) tanks for additional separation.
Galfar said at that time that it had received the letter of award on 21 July, 2019, and the contract was effective from 24 July, 2019.
In July 2019, the company closed $44.7m (OMR17.2m) sale of its Indian assets to investment house PMA International.