Muscat – Oman’s leading construction and contracting firm, Galfar Engineering and Contracting Company, has been awarded a massive contract worth RO100mn by Petroleum Development Oman (PDO).

Galfar shares rose by 0.64% on Tuesday at the Muscat Stock Exchange following the announcement of the new contract award by the company.

‘We are pleased to inform our esteemed shareholders that PDO has awarded Galfar the Project Delivery Contract Qarn Alam via a letter of award that was formally accepted by both parties on January 30, 2024, and approval from PDO to disclose was confirmed today,’ Galfar said in a disclosure to the Muscat Stock Exchange on Tuesday.

As per the disclosure, the value of this call-off contract is approximately RO100mn for an execution period of five years, effective from January 30, 2024.

Galfar expects this contract to have a positive impact on the company.

‘We take this opportunity to express our appreciation to PDO for the confidence vested in Galfar through this award,’ the company added.

This is the second major contract awarded by PDO to Galfar Engineering and Contracting Company in less than a year’s time. In June 2023, Galfar was awarded a massive contract worth RO280mn for Off-Plot Delivery Contract Qarn Alam by PDO. The contract also included an additional three-year extension option worth RO120mn.

According to the company’s preliminary financial results, Galfar’s total revenues jumped to RO250mn in 2023 from RO177.62mn recorded in the previous year. However, the company’s net profit sharply dropped to RO50,000 in 2023 compared to RO1.283mn recorded in 2022.