Oman's Galfar records $397m in H1 2017 revenues
Galfar has been "significantly affected by the delays in receiving" its project dues, a company official said
Oman's Galfar Engineering and Contracting recorded consolidated total revenues worth $397m (OMR152.9m) during the first half of 2017, a drop compared to corresponding figures for H1 2016, worth $452.5m (OMR174.2m).
Meanwhile, Galfar’s parent company recorded total revenues worth $376.6m (OMR145m) in H1 2017.
The figure is lower than total revenues worth $431.2m (OMR166m) in H1 2016.
According to a financial statement posted by Galfar on the Muscat bourse, the parent company’s profit after tax amounted to $1m (OMR395,000) in H1 2017 – notably lower than H1 2016’s profit after tax, worth $3.3m (OMR1.3m).
At a meeting held on 3 August, 2017, Galfar’s board of directors accepted the resignation of Abdelqadir Ahmed Askalan, who departed his role as director due to "personal reasons".
In documents uploaded to the Muscat bourse on the same day, Galfar revealed that its parent company "roughly maintained" its order book at $1.5bn (OMR576.4m) in Q2 2017, "down slightly from our previous quarter", worth $1.52bn (OMR585.6m).
The statement added: "The value of new contracts, extensions and variations included for the first six months was $179.5m (OMR69.1m), comprising a new award on the Batinah Expressway for the Ministry of Transport and Communications, grid stations at Birkat Al Mouz and Sumail for Oman Electricity Transmission Company, and additional packages under our Petroleum Development Oman (PDO) contract."
According to the statement, signed by company chairman Majid Salim Said Al Fannah Al Araimi, Galfar has "been significantly affected by the delays in receiving its dues of the projects and the pressure on its payments to suppliers and subcontractors".
The document continued: "Due to this situation, the ability of the company to meet its commitments is dependent on the ability of our clients to make project payments without delay as and when they are due going forward.
"The directors are of the opinion that matters will be resolved in a timely manner," the statement added.