Galfar Engineering & Contracting Company Sustains Growth Momentum Amidst New Contract Awards
Galfar Engineering & Contracting Company, Oman’s leading construction firm, has reported a substantial increase in its order book, reaching RO579mn by the end of 2023. This surge reflects the company’s resilience and adaptability in securing new contracts, bolstering its position in the market. The rise in the order book, from RO517mn a year ago, underscores Galfar’s robust performance amidst a challenging economic landscape.
The uptick in the order book can be attributed to the acquisition of new project awards valued at RO397mn throughout 2023. These awards highlight Galfar’s ability to consistently secure significant contracts, demonstrating its reputation for reliability and expertise in the construction sector. The influx of new projects signifies confidence in Galfar’s capabilities and underscores its pivotal role in driving infrastructure development in Oman.
While Galfar witnessed a notable increase in sales revenue, soaring by 43.7% year-on-year to RO239mn, challenges in the form of a decline in net profit were encountered. The parent company’s net profit dropped to RO0.57mn in 2023, primarily attributed to non-operational reasons, including adjustments related to the implementation of new labor laws. Despite this setback, Galfar remains committed to enhancing its financial performance and implementing strategic measures to mitigate challenges.
Galfar’s subsidiary companies in Oman, including Aspire Readymix, Aspire Projects, and Al Khalij Heavy Equipment, showcased significant improvement in their performance during 2023. These subsidiaries transitioned from a loss of RO2.94mn in 2022 to a marginal profit of RO0.02mn in the year ended December 31, 2023. Galfar is steadfast in its commitment to enhancing the performance of its subsidiaries further, leveraging strategic plans and measures to drive sustainable growth and profitability.
Looking ahead, Galfar anticipates maintaining a solid order book exceeding RO500mn, with numerous tenders currently under evaluation across diverse sectors and clients. The company remains optimistic about securing additional projects and ensuring stability and sustainability in its market position. Moreover, Galfar is exploring diversification opportunities in construction technology, energy, PPP projects, and other sectors to foster long-term growth and resilience.
With Oman announcing many infrastructure projects, Galfar is poised for growth and expansion in 2024. The company views the abundance of projects as a significant opportunity to bolster its market presence and drive business expansion. Particularly, Galfar’s emphasis on the energy sector aligns with Oman’s focus on advancing its infrastructure and promoting economic development.
Despite facing challenges, Galfar remains steadfast in its commitment to improving financial performance and implementing a turnaround strategy. The company continues to explore avenues to strengthen its financial position, including cost-control measures and enhancing project execution efficiencies. Galfar’s proactive approach underscores its determination to navigate the evolving economic landscape and emerge stronger.
However, subsidiary companies such as Aspire Readymix and Aspire Projects showed improved performance, with bottom-line improvement from a loss of RO2.94mn in 2022 to RO0.02mn in 2023. Looking ahead, Galfar remains optimistic, expecting to maintain a solid order book of over RO500mn, fueled by ongoing tenders and diversification efforts in sectors like construction technology and energy.
Galfar Engineering & Contracting Company’s sustained growth trajectory and strategic initiatives underscore its resilience and adaptability in Oman’s construction industry. With a robust order book, strategic partnerships, and a commitment to financial turnaround, Galfar is well-positioned to capitalize on emerging opportunities and contribute to Oman’s infrastructure development initiatives.
