Galfar posts $2.78m Q1 loss
Muscat, May 16, 2010
Oman's Galfar Engineering and Contracting Company reported a RO843,000 ($2.78 million) loss in the first-quarter mainly due to a project cost increase, but forecast improved results for the second half of the year.
The company made a profit of 4.6 million Omani rials in the first three months of last year. In an earnings statement, Galfar's chairman Salim Al-Araimi attributed the loss 'to the increase in costs of Muscat Expressway.'
The company is currently building the Muscat Expressway road awarded by the government two years ago.
However, Galfar said it has a healthy order book position and expects to post improved results in the second half of the year. The company has won a number of infrastructure contracts in 2009.
Galfar Engineering won contracts worth 41 million rials for infrastructure projects earlier in April, covering road projects and a hospital building.
Shuaa Capital began coverage of Galfar Engineering with a 'sell' rating in March, expecting the company's earnings to remain under pressure.-Reuters