Galfar Engineering and Contracting Co reported a 60 per cent drop in consolidated net profit for the six-month period ended June 30, 2014 to RO2mn, against RO5mn in the corresponding period last year.
The company’s total revenue inched down to RO195.2mn from RO195.8 a year ago, according to a filing with the Muscat Securities Market.
Galfar said, in its directors’ report, that certain road, bridge and airport infrastructure projects have not progressed as planned due to delays and non-approval of borrow pits.
“This has resulted in expenditure towards idling of resources. Our receivables are high due to delay in payments for executed work from clients, and hence finance costs have also adversely affected our profits,” Galfar said.
During the period the company bagged new projects worth over RO90mn, compared with RO27mn in the previous year.
Recently, PDO extended its off-plot delivery contract (ODC – North) for a year. Galfar said it expects to generate revenues of RO40-50mn from the service contract.
The company said it continues to maintain an order book of over RO540mn. “We expect to be awarded some projects which have already been tendered,” Galfar added.