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Oman's Al Hassan Engineering named for $35m Petrofac contract

The Omani contractor has received a letter of award that covers the construction of civil, mechanical, electrical, and instrumentation works for the Salalah LPG project

Oman's Al Hassan Engineering has signed a letter of award with Petrofac for Salalah LPG Project's Package 2 [representational image].
Oman's Al Hassan Engineering has signed a letter of award with Petrofac for Salalah LPG Project's Package 2 [representational image].

Oman's Al Hassan Engineering has received a letter of award from Petrofac for work worth $35m (OMR13.5m) in the sultanate. 

The award covers the construction of civil, mechanical, electrical, and instrumentation works for Salalah Liquefied Petroleum Gas (LPG) Gas Project's Package 2. 

READ: Oman contractor Al Hassan Engineering narrows loss by 14% in 9M 2017

Al Hassan Engineering said that the project is expected to span around 22 months.

In a filing to the Muscat bourse, the contractor added that "reasonable income" was expected from the development. 

Earlier this week, the contractor announced that its director, Nabil Abdullah Al-Ghassani, had resigned from his position at the company. 

Irshad bin Moosa bin Khamis Al Lawati has been temporarily appointed as the director of Al Hassan Engineering. 

Al Hassan Engineering 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 marked 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." 

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Construction Week - Issue 725
Jan 19, 2019