Leading Omani construction firm Galfar Engineering & Contracting SAOG (parent company) recorded revenues of RO 34.368 million for Q1 2022, which was significantly lower than the earnings of RO 48.339 million for the corresponding quarter of 2021.
Net profit slumped to RO 0.529 million this year, down from RO 1.480 million for Q1 2021. “This reduction in profit is on account of reduced scope of works and cash flow constraints. However, the company is able to sustain a positive net margin due to various initiatives taken as part of its turnaround strategy to re-organize, improve projects performance and implement stringent cost controls,” said Majid Said Salim al Fannah al Araimi, Chairman.
“The positive bottom-line results came despite various challenges such as drop in revenues by approximately 29 per cent compared to the same period last year, reduction in work load and cash flow constraints due to late receipt of payments,” he added in the Directors’ Report for the quarter.
For the period ended March 2022, Galfar received new project awards worth RO 91 million, the Chairman said. “Despite the economic situation and reduction of spending in public projects, Galfar continues to maintain significant projects pipeline of RO 473 million. Within this order book the company still waiting to receive the commencement order for projects awarded in previous years such as Dualization of Haima-Thamrait Package-4 Project (awarded July 2020), and Wadi-Alyen Water Network Project (awarded July 2019), for which commencement orders continue to be delayed,” he further stated.
“Going forward, Management expects to maintain a solid project pipeline in excess of RO 400 million with a significant number of tenders under evaluation across a diverse array of sectors and clients. We reasonably expect to be successful in a number of those which will ensure stability and sustainability of our strong market position,” the Chairman added.
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