Oman National Engineering sees net rise 38%
Utilities builder gains from infrastructure spending; revenues rise
Oman National Engineering & Investment Company, the electricity provider and water plant operator, said net profits after tax rose 38% against 2009 as plans to diversification continue.
The Ruwi-based power supplier, which builds and maintains desalination plants, saw after-tax gains hit OR 2.29 million against OR 1.66 million the previous year. Total revenue rose 43% to OR 27.23 million.
The company has OR 70 million in current contracts with about OR 43 million for projects and operation and maintenance deals, it has told shareholders in its annual statement, and is diversifying towards the industry sector. It aims to establish HDPE pipes plant in association with local partners, and a digital meter plant with international and local partners.
ONEIC is in the process of constructing its head office at Al Khwair, which shall comprise of two basement floors for parking, ground floor for showrooms, seven commercial floors and a penthouse. The value of the company’s property, plant and equipment rose almost doubled to OR 10.46 million against OR 5.866 million in 2009.
Oman’s power demand will grow by 8.5% according to the government. The state is seeking to enhance its utilities capabilities and has awarded numerous contracts as part of the OR 5 billion earmarked for the country’s construction sector. Last June a consortium of five companies won an US $1.77 billion contract to build power and desalination plants that will represent an installed capacity of 1,921 MW and a water production of 268,000m3 a day.
Last month, Oman’s Power and Water Procurement Company (OPWP) selected six companies to prequalify for the construction of a 2,000MW independent power project (IPP) at Sur, according to a report by the Times of Oman.
"As we envisaged last year, new projects has been announced in the power, water and sewage sectors, which shall provide opportunities for the private sector to gain their share," said ONEIC's management report.
ONEIC shares closed down 1.67% in Muscat yesterday at 0.5 riyals. Shares have risen 31.5% since the start of September.