Al Hassan Engineering remains in the red after a $4.9m (OMR1.9m) loss in the same quarter that its Abu Dhabi subsidiary fell into liquidation.
The Omani contractor is in the red due to losses incurred on two undisclosed projects in Q1 2018.
The business had previously reported a consolidated loss of $69.45m (OMR26.74m) in 2017.
Al Hassan’s year-on-year results swung from black to red, dropping from profit of $213,000 (OMR 82,000) in Q1 2017 to the $4.9m loss reported this week.
Profitability was negatively affected by “inadequate liquidity”, according to business, which was the first contracting company to ever be listed on the Muscat Securities Market.
The loss comes after the company’s board of directors decided to “discontinue UAE operations” and its subsidiary, Abu Dhabi LLC, filed for liquidation in April.
Al Hassan bemoaned the “disruption” in the UAE market but moved to reassure shareholders by stating that the quarterly loss will not affect the net worth of the business.
During the quarter the company received $20.8m (OMR8m), which was used to make “critical payments” to move construction projects forward, the company site, which helped to minimise the negative effects of a “liquidity crisis”.
Projects with BP, Duqum Refinery, and Oman Liquefied Natural Gas among others are expected to be tendered in the coming months, and Al Hassan said it was “well placed to get a reasonable share of these significantly high value projects.”
The company landed two new projects in the previous quarter: a $35m Petrofac contract for construction work on the Salalah Liquefied Petroleum Gas project; and a $45.7m (OMR17.6m) Petroleum Development Oman (PDO) contract for the Haima West Power project.
Good returns on investment are expected from both of these projects.
Al Hassan’s work on the Rabab Harweel Power Plant is now 98% complete, while the Lekhwair Fahud pipeline has been completed four months ahead of schedule and has been handed over to PDO.