Oman contractor Al Hassan narrows loss by 14% in 9M 2017
The contractor said planned profitability "could not be achieved" in Q3 2017, despite notable progress made on the projects it is building for Petroleum Development Oman
Oman's Al Hassan Engineering Co reported a net loss of $15.3m (OMR5.9m) for the first nine months (9M) of 2017, despite recording significant milestones and progress on its ongoing developments in the sultanate.
The amount marks a 13.6% decline against the listed firm's net loss for 9M 2016, worth $17.6m (OMR6.8m).
Planned profitability levels "could not be achieved" in Q3 due to delays in restructuring operations, according to the contractor, which added that this impacted liquidity and subsequent project progress.
In a set of documents issued to the Muscat bourse, the contractor added: "The turnover planned from new projects was also not achieved, since there was no new order intake.
"However, it is expected that profitability will be improved [in Oman] in Q4, upon the restoration of liquidity."
Al Hassan said that the outlook for "most projects under execution in Oman" was positive from the perspective of both, time and cost.
Rabab Harweel Power Plant and Heat Recovery Steam Generator, a project by Petroleum Development Oman (PDO), is one of Al Hassan's active schemes in the sultanate.
The development is 93% complete, the contractor said.
Meanwhile, the Lekhwair-Fahud Main Oil Line (MOL) is another PDO project that the contractor is working on.
Major works on the development are 93% complete, notably higher than the scheduled project progress of 73%.
The MOL is on track to complete in Q4 2017, six months ahead of schedule.
PDO's Saih Nihayda Condensate Stabilisation Plant (SNCP) is also being built by Al Hassan, and the project is currently 93% complete.
A pre-start audit is due to be carried out for the project this month.
Al Hassan said that its backlog is worth $165m (OMR63.5m), of which $118.2m (OMR45.5m) comprises projects in Oman.
"There are good new bid opportunities in the coming months, including at Duqm, and many customers have expressed keen interest in working with the company," the contractor added in its statement.