Al Hassan Engineering Co has been awarded a US$68mn contract for construction and civil works for Sohar refinery improvement project (SRIP).
“Al Hassan Engineering Co is pleased to announce the receipt of a letter of intent from Daelim-Petrofac SRIP (joint venture), for construction and pre-commissioning of civil and underground piping works for the Sohar refinery improvement project,” Al Hassan Engineering Co said in a filing with the local bourse on Wednesday.
The company said that the estimated value of the contract is approximately US$68mn. “The work is expected to be completed by April 2016. The company expect to generate reasonable income from this project,” the company added.
The shares of Al Hassan Engineering surged by six per cent on Wednesday on the back of the announcement.
Al Hassan had recently won an RO19mn contract from Petroleum Development Oman (PDO) for the construction of the Ghaba north redevelopment project.
The company posted a net loss of RO1.8mn for the first half of 2014 against a net profit of RO421,000 in the same period last year. Its contract income in the first half this year was 3.7 per cent lower at RO29.75mn, compared with RO30.9mn a year ago. According to the latest company report, Al Hassan Engineering maintains an order backlog of over RO130mn.
In November last year, Oman Oil Refineries and Petroleum Industries Co (Orpic) awarded the US$2.1bn engineering, procurement and construction contract to a 50:50 JV of Petrofac, the UK-based international oil and gas services provider, and South Korean firm Daelim Industrial Co Ltd.© Copyright - Muscat Daily