Galfar order book balloons to record RO 890m
Conrad Prabhu
Business Correspondent - Oman Daily Observer; Magazine Editor - ENERGY OMAN
OMAN DAILY OBSERVER / 18 NOV 2024
CONRAD PRABHU
MUSCAT: Leading Omani infrastructure and energy sector contractor Galfar Engineering & Contracting SAOG has reported a 50 per cent surge in its order book to a record RO 890 million for the nine months ended September 30, 2024, up from around RO 589 million a year earlier.
The increase has been fuelled by an uptick in contract awards across the Oil & Gas, Rail Infrastructure, Electricity and Water, Wastewater, and other civil infrastructure sectors.
“The substantial expansion of our order book to a record RO 890 million, up from RO 589 million in the previous year, underscores our strategic success in securing high-value contracts, particularly within the Oil & Gas and Infrastructure sectors. These achievements provide a strong foundation for future financial stability and growth,” publicly traded Galfar noted in the Directors’ Report of the company’s performance during the first nine months of 2024.
The most lucrative of the contracts bagged by Galfar so far this year was announced in April when a joint venture of the Omani contractor and Trojan Construction Group of the UAE scooped the civil package of the Hafeet Rail project valued at RO 521 million. As part of the award, the JV will undertake the civil construction of the 303km long rail network linking Abu Dhabi with Suhar.
In August, Galfar won a major contract worth RO 117 million for the construction of water distribution networks in Al Dhahirah Governorate. The client is state-owned Nama Water Services, which selected the Omani firm to design and build Package 1 of the water distribution networks for Ibri, Yanqul, and Dhank Wilayats.
Just earlier, in July, Galfar was awarded a contract for the expansion of the Raysut Water reclamation plant by Nama Dhofar Services Company in Dhofar Governorate. The project is valued at approximately RO 35 million.
The parent company generated revenue totaling RO 196.5 million for the nine months ended September 30, 2024, representing an 11.2 per cent increase compared to RO 176.7 million for the same period in 2023. The company, however, reported a net loss of RO 1 million for the period.
Going forward, Galfar foresees opportunities linked to the government’s Public-Private Partnership (PPP) programme. “The pipeline of projects in sectors such as education, health, transportation, and technology continues to grow, and we are prepared to seize these opportunities to drive our revenue and market presence,” the company said. “With a focus on diversification into new markets, including Construction Technology and Energy, we are establishing pathways for long-term resilience,” it added.