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Al Hassan Engineering records a 28% rise in Revenues (18 Mar 09)

Al Hassan Engineering Co. SAOG (AHEC) revenue rose 28 percent to RO 45 million in 2008 compared to 2007. This was announced by AHEC at a discussion session hosted by Muscat Securities Market (MSM) at the MSM Businessmen Hall recently.

Ahmed bin Saleh al Marhoon, Director-General of the MSM and Suleiman Al Rashdi, Deputy DG, MSM were joined by representatives of brokerage firms, financial analysts, bankers and shareholders at the discussion forum. AHEC team was represented by Hassan Ali Salman, Chairman; Maqbool Ali Salman, MD; Peter Hall, CEO and other members of the top management.

Mr Hall opened the session with screening of a video film highlighting capabilities and expertise of Al Hassan in engineering, procurement and construction activities. He then shared with the audience the successful implementation of Organizational Development initiatives at AHEC.

He elaborated the first order the Company has received in Dubai is for Civil Works for a 400/132 kV Substation project from Siemens LLC, UAE. “This order will give a strong foothold to AHEC in the UAE market and will enable further development of the necessary organisational structure and capabilities for future business growth”, he said. AHEC has ensured repeat business from “Blue Chip” Customers like PDO and GS Engineering & Construction, Korea. AHEC continued to build on its reputation of safely providing high quality project solutions, having logged 13.4 million manhours without any Loss Time Injury (LTI) for all projects in 2008.

AHEC has increased its Income by RO 10 million to 45 million in 2008 and attained a net profit at RO 2 million despite high volatility in pricing of materials and recessionary market conditions. AHEC also has a healthy opening order backlog for 2009 at RO 67 million. New orders received during 2008 totalled around RO 68 million in value. These include EPC contracts for Nimr-C Full Field Water Injection and Burhan West - Harmal Pipeline Projects both with PDO. In addition, AHEC secured construction contracts including MEI Works for 50 MW Power Plant (ORPC-Hirbodan), MEI Works for 2 × Heat Recovery Steam Generators (Oxy Mukhaizna- Gulf Steam Generators), Civil Works for Seeb Wastewater Project (Haya Water - Hyundai Rotem) and Civil Works for 400kV Sub-station at Dubai (DEWA - Siemens).

Asked about the impact of fluctuating commodity prices such as steel, cement on the company’s profit margins, Mr Hall said the recent declining trend would reflect positively on the bottom line in 2009.

He further outlined that the operating market sectors for AHEC like Power Generation, Oil, Gas & Petrochemicals, Water and Wastewater have remained stable. "AHEC is well positioned to capture due share of these markets as it has considerable market knowledge, long experience and necessary expertise."

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