Galfar Engineering wins $6.1m Daleel road contract
Three year deal to prepare drilling site for petroleum joint venture
Galfar Engineering & Contracting, the Omani contractor, said it has won an OR 2.37m ($6.1m) road contract from Daleel Petroleum to build access roads and prepare drilling well sites.
The three-year deal, announced yesterday, will begin at the start of October and may be extended by two years, according to Ruwi-based Daleel.
Galfar E&C competes for contracts across a range of construction and civil engineering work, with particular strength in infrastructure projects such as bridges, oil and gas and utilities. The company operates throughout the Gulf and has in the last two years also grown in India, winning deals such as the EPC work on the Indore-Ujjain road project, a toll road that is now fully operational, according to the company.
The company is also working on numerous electricity-related projects as Oman struggles top meet growing demand. In March it won an OR 5.74m ($14.8m) deal from Oman Electricity Transmission Company to upgrading Mudhaibi, Rustaq and Izki grid stations, a 12 month deal.
Revenue for the second quarter increased 12.3% against the first quarter and by 3.5% against the second quarter of 2010, at OR 87.77m ($227.94m). Net profit fell against last year, however, from OR 2.43m ($6.31m) to OR 1.31m ($3.4m).
Earlier this month the company established a joint venture with Al Fara’a Group’s Unibeton Ready Mix to create Unibeton-Galfar Ready Mix, concrete supplier that is equally owned by the two companies and will supply Galfar and its customers.
The company also established a small contracting subsidiary, Aspire Projects and Services, a limited liability company 99.9% owned by Galfar Engineering & Contracting SAOG. “This company will carry on the activities of small diversified engineering and contracting works,” the company has told investors.
Analysts have been cautiously optimistic on the stock the last two months. Nishit Lakhotia at Bahrain’s SICO recommended ‘neutral’ on the stock on 27 June, as did Vijay Sridharan at Juwait’s Gulf Baader Capital Markets. Vishal Gupta at Bank Muscat, recommended a ‘hold’ on 19 August.
Galfar shares advanced 1.994% to 385 baisa yesterday in Muscat.