Oman: Galfar's order book reaches record high in H1 2024

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MUSCAT: Leading Omani contractor Galfar Engineering & Contracting SAOG achieved a significant financial milestone, with its order book climbing to a record RO 816 million during H1 2024. This figure represents a substantial increase from the RO 644 million recorded in the same period last year. The substantial growth was fueled by new project awards totaling RO 279 million, which solidified Galfar's position in the Oil & Gas and Infrastructure sectors.

The company reported a revenue of RO 128.9 million for the first half of 2024, marking a 10.8 per cent increase compared to the previous year. This growth in revenue reflects Galfar's continued ability to capitalize on new business opportunities and expand its market presence, the publicly-listed company stated in its latest financial statement.

However, despite the positive revenue growth, the company’s net profit for the period fell to RO 0.86 million from RO 1.24 million in the corresponding period of the previous year. This decline in net profit, while notable, was offset by the overall expansion in the order book and revenue.

Galfar's subsidiaries in Oman, including Aspire Readymix, Aspire Projects, and Al Khalij Heavy Equipment, also showed signs of recovery and improvement. Collectively, these subsidiaries managed to reduce their combined loss to RO 0.285 million for the period ended June 2024, a significant improvement from the RO 0.95 million loss reported for the same period last year. This positive trend indicates successful efforts to turn around the performance of these subsidiaries and enhance their contribution to the overall business.

As the Company moves into the second half of 2024 and beyond, the company is set to continue implementing its strategic plans aimed at sustaining growth and excelling in project delivery. The company’s strategy is built on the expectation of overall growth in the local economy, driven by increased government and private sector projects targeting development and infrastructure across various sectors in Oman. These efforts align with broader objectives such as achieving fiscal sustainability and economic diversification, it added in the Directors’ Report.