Muscat: Oman’s largest construction firm Galfar Engineering & Contracting Company has reported a 61 per cent drop in its net profit for the first nine months of 2019, the company said in a statement to Muscat Securities Market (MSM)
The company’s combined net profit dropped to OMR2.2mn for the first nine months of 2019 from OMR5.72mn net profit reported for the same period of last year. The decline is due to a delay in receiving overdue payments and in completion of certain projects.
Galfar Engineering &Contracting also reported 10 per cent lower revenues for the January–September period of 2019 at OMR189.53mn compared to OMR210.86mn in the corresponding period of 2018.
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Galfar also revealed that its parent company has overdue receivables of OMR 71mn as of the date from the government and its related entities. “The delay in receiving the overdue receivables has caused a strain on our cash flow, which resulted in suboptimal execution of certain projects and delay in completion of certain projects. As a result, revenue and profitability were lower than planned and lower than the same period in 2018,” the company said in its financial report submitted to the MSM.
“The board and management continue to explore opportunities to reduce operating expenses, to maintain our competitiveness and to improve the financial results whilst strengthening the company’s financial position. The company resources are optimised continuously to align with the financial situation,” Galfar added.
