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 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.
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."