Oman's Al Hassan Engineering Co posts 134% profit hike in H1'19
Listed EPC contractor posts $2.4m in H1 2019 profit, a significant improvement over loss of $7m during H1 2018
Listed Omani engineering, procurement, and construction (EPC) contractor Al Hassan Engineering Company has reported a significant increase in year-on-year profits for the first six months of 2019, according to the group’s unaudited financial results on bourse Muscat Securities Market.
The contractor posted profits of $2.4m (OMR912,000) for the period ending 30 June, 2019 – a 134% increase on the $7m (OMR2.7m) in losses it reported during the same period last year.
Income rose 69% on the first half of 2018, with the group bringing in $49.3m (OMR19m) in cash between January and June this year.
The figures come four months after the contractor announced that its cash position “continues to remain precarious” as it faces payment delays, awaits the settlement of disputed claims, and faces the liquidation of its Dubai subsidiary after its Abu Dhabi unit’s closure during 2018, as reported by Construction Week at the time.
In 2018, Al Hassan Engineering Co completed the Lekhwair Fahud pipeline, Ghaba North Redevelopment, Zauliyah Gas Plant, and Rabab Harweel power plant and heat recovery steam generator schemes for Petroleum Development Oman.
For RHPP, Al Hassan Engineering Co was granted project-specific temporary funding of $5m (OMR2m), of which the outstanding $4m (OMR1.6m) was repaid by the contractor in February 2019.