Galfar Engineering net profit rises in 2011
Omani contractor sees revenues fall but projects progress across GCC
Galfar Engineering & Contracting saw contract and sales income decline in the first six months of 2011 against last year, despite progress on many infrastructure projects in both the GCC and India.
The Omani contractor, based in Muscat, received OMR 165m ($428.51m) in total revenue for the period, down 5% against QMR 174.7m ($453.8m) last year, with its level of trade receivables – money owed to the firm – rising 7.6% to OMR 185.7m ($482.27m). But lower operating expenses and higher income from other sources saw the company post a higher net profit than a year before, up 68% to OMR 2.68m ($6.96m) from OMR 1.56m ($4.05m).
Galfar Engineering covers construction and civil engineering work across the Gulf and has for the last year been expanding its services into India. This year the company completed its EPC work on the Indore-Ujjain road project, a toll road that is now fully operational, according to the company.
Work on the Ghaziabad-Aligarh road project is underway and will be completed in the next two years, with operation work also beginning on the Chandikole-Bhubaneshwar troad project.
“Considering India’s requirements for infrastructure, Galfar Engineering & Contracting (India) Pvt. Ltd., the wholly owned subsidiary of Galfar - Oman continues to concentrate on roads infrastructure projects. We have also been approached by several mega companies to work with them as EPC partners,” wrote Shaikh Salem Said Hamed Al Fannah Al Araimi, chairman of Galfar, in his quarterly statement to investors.
“While we are careful in selecting new partners, we are also pursuing the opportunities as a construction contractor. We are now looking for port facilities, material handling berths and other greenfield port projects in BOO sector.”
Galfar has a total order book of around OMR 525m ($1.36bn) and is tendering for a number of contracts across oil and gas, infrastructure, airports, hotels, hospitals and railways. In Oman the company secured a OMR 37.04m ($96.2m) contract as main construction company on the Nimh G and Karim West Water Flooding project for Petroleum Development Oman. The company has secured numerous utilities projects in the Sultanate.
This year the company’s new subsidiary in Kuwait prequalified for the runway package at Kuwait International Airport with its joint venture partners.
The company’s inventories have declined in value in the last year from OMR 33.9m ($88.03m) to OMR 26.88m ($69.80m), according to its financial statement, though the value of its advances and prepayments has increased to OMR 15m ($38.95).
Shares remained static in Muscat yesterday at 454 baisa.