Project delays cause profit fall at Galfar
Omani builder says finance costs increase as it awaits client payments
Oman's Galfar Engineering & Contracting has reported a 60% decline in net profit for the first half of 2014, which it blamed on delays to a number of roads and airports projects.
The company made a net profit of $5.2mn (OR2mn) in the six months to 30 June, while revenues declined slightly to $506mn (OR195mn), compared to $509.1mn (OR196mn) last year.
The firm said that it has experienced some delays in client payments, which also increased its borrowing costs.
Despite this, it said that it had been awarded $233.8mn (OR90mn) in new projects, including an extension to its Off-Plot Delivery Contract for Petroleum Development Oman. This means that the overall size of its order book is currently around $1.4bn (OR540mn).
The company, which was rocked earlier this year by the jailing of its founder, P Mohamed Ali, on corruption charges, has also announced that it has set up a new supervisory and follow-up sub-committee to monitor projects.
It will be headed by Galfar's chairman, Sheikh Salim Said Hamad Al Araimi and will also include vice-chairman Sheikh Salim Abdullah Said Badr Al Rawas, Abdulqader Ahmed Askalan and Dr. Hatem Bakhiet Said Al Shanfari.