Galfar's order book hits $1.78bn
Chairman points to 'general optimism' among Sultanate's contractors
Galfar Engineering & Contracting has revealed that its order book at the end of 2012 reached $1.78bn (OR: 685m), which it said was due to the fact that it won $1.18bn worth of new projects during the year.
Writing in newly-filed accounts for the company, chaiman Salim Said HamadAl Fannah Al Araimi said: "The business environment looks bright with the announcement of several development projects in sectors relating to roads, oil and gas, power, water, wastewater and other infrastructure."
He added that the company, which is the biggest contracting company in the Sultanate, is well-integrated enough to deliver projects in a way that will benefit the country's overall economy.
For instance, he pointed out that 20% of the work it is awarded is subcontracted to local SMEs, while more than 50% of its own procurement is spent on activities within Oman.
"This practice will continue and grow with Galfar’s own growth in various construction sectors," said Al Araimi. "Galfar has taken upon itself a responsibility to encourage and support the SME movement."
Net profit during the year increased by 75% to $23.9m, while turnover climbed by 9.5% to $874.3m (OR: 336.5m). Galfar also recently announced plans to raise $36m via a rights issue, which Al Araimi said would be used "strengthen the company’s balance sheets and to support its long term growth".
The firm said there was "general optimism" within the country's construction industry as the government has decided to proceed with many projects which had been pending for some time.
"There are several large road projects planned for the coming few years and Galfar is fully geared for competing and securing these," said Al Araimi.
"Large scale expansion is planned in the water and electricity transmission and distribution and this too will form one ofthe target markets for Galfar."