Oman's Al Hassan Engg widens its loss for 2015
Al Hassan Engineering’s board has also decided to take a series of new steps, including sale of land, efforts to recover additional cost
Al Hassan Engineering Co's net loss widened to $21.2m (OMR8.2m) for the whole year of 2015 compared with a net loss of $3.6m (OMR1.4m) in the corresponding period last year.
The company however reported a robust 34% growth in contract income for 2015 at $264m (OMR102m) from $198.6m (OMR76.5m) in the same period of 2014.
Al Hassan Engineering’s board has also decided to take a series of new steps, including sale of land, efforts to recover additional cost and recapitalisation of Abu Dhabi subsidiary, to improve its financial position and strengthen balance sheet for 2016.
In order to offset it’s loss, the company and the major shareholders are expected to enter into a sale and purchase agreement for a vacant land in Ghala for $8.3m (OMR3.2m).
This land was vacated in 2015 by shifting the fabrication, plant workshop and stores to a new improved facility in Nizwa.
This agreement is expected to be approved in the annual general meeting, which will give the company a cash inflow and one-time non-operational profit of $7m (OMR2.7m) in the first quarter of 2016.
All efforts are also taken to recover additional costs from clients,including involvement of third party/legal dispute resolution process, reported local daily Times of Oman.