Galfar posts $52.3m net loss in 2019, as revenues plummet by 14.9%
Omani contractor said, the parent company's performance was impacted due to impairment of receivables & other current assets
Muscat Securities Market-listed Omani contracting heavyweight Galfar Engineering and Construction has incurred a net loss after tax of $52.3m (OMR20.1m) in the 12-month period ending on 31 December, 2019.
The parent company recorded $607.5m (OMR233.9m) in 2019 revenue, which dropped by 14.9% compared to the corresponding figures of $714.1m (OMR274.9m) in 2018.
In a stock market filing, the contractor said that the financial statements were approved in the meeting of the board of directors held on 4 June, 2020.
Meanwhile, the consolidated net loss (after tax) of $16.3m (OMR6.3m) in the period ending 31 December, 2019.
Consolidated revenues for the same period witnessed a plunge of 13.9%, decreasing from $758.2m (OMR291.9m) in 2018 to $652.9m (OMR251.4m).
Galfar said: “Parent company’s performance has substantially impacted due to provision, mandated by IFRS requirement, for impairment of receivables, and other current assets for an amount of $46.2m (OMR17.8m).”
The company added that the management and the board were “confident to collect the old outstanding receivables”, provision has been created against which in the books of account resulting in “reversal” of the “provisions in the near future”.