(MENAFN - Muscat Daily) Muscat- Galfar Engineering & Contracting Co, the largest construction and contracting company in Oman, reported a decline in its net profit for the first quarter of this year as the company recorded lower revenues due to the payment delays on certain projects.
The company's consolidated net profit fell to RO465,000 in the three months period ended March 31, 2019 from RO1.45mn recorded in the corresponding period of 2018.
Galfar's revenue dropped by more than 8 per cent to RO64.18mn in the first quarter compared to RO70.19mn in the same period of last year.
'The delay in receiving overdue receivables has caused a strain on our cash flow. This resulted in suboptimal execution of certain projects and a delay in completion of certain projects. As a result, revenue was lower than planned and lower than the same period in 2018', Galfar said in its first quarter report submitted to the Muscat Securities Market on Tuesday.
The company said its board and management continue to explore opportunities to reduce operating expenses and maintain competitiveness to improve the company's financial position.
Galfar said it received RO31mn worth of new orders during the first quarter of 2019. Its order book as of the end of March stood at around RO367mn. Earlier this month, Galfar was awarded a major road project from Rusayl to Bidbid with a value of RO86mn.
'Going forward, we expect to maintain a solid work pipeline 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', Galfar said.
Galfar said it has also established a 100 per cent subsidiary company in Kuwait and started bidding for government tenders.