In spite of the difficult economic conditions, Galfar and Engineering and Contracting managed to generate a positive cash flow in 2018
Galfar and Engineering and Contracting maintained its position as one of the leading contracting companies in Oman with operations across the Sultanate and India. Galfar remains one of the largest employers of Omani nationals in the private sector.
The group’s performance during the year 2018 has resulted in positive contribution to the equity and reduction in accumulated losses. The majority of accumulated losses are from Indian operations.
Post balance sheet date, the parent company has entered into a preliminary agreement with PMA International to sell all its investments in India. The deal will facilitate the company to concentrate on its core business in Oman and enhance value addition to the stakeholders.
During the year, the company including its subsidiaries, has recorded a turnover of RO289.1mn (against RO293.1mn in 2017) with profit after tax of RO2.2mn (against a loss of RO6.5mn in 2017). The parent company’s turnover for the year 2018 was RO 272.36mn (against RO277.73mn in 2017) and reported profit after tax RO5.7mn (against a loss of RO3.7mn in 2017).
Positive cash flow
In spite of the difficult economic conditions, the company managed to generate a positive cash flow during the year under review. The company received new orders worth R0153mn. Some of the major orders received during the year include operation and maintenance of Salalah Waste Water System & treated effluent network; construction services for Daleel’s on-plot areas; Petrofac’s Salalah LPG Project- subcontract for CMEI works package-1 and BP’s phase II gas gathering. The backlog as per end Feb 2019 is RO380mn.
Building on its strong market position and its reputation for giving high-quality construction projects across various sectors, Galfar has a confirmed healthy order book of around RO380mn. Currently projects in East Africa and Kuwait are being studied as potential new areas of work.