Oman-based construction company Galfar Engineering & Contracting Co blamed late payments on a 9% drop in revenue.
Galfar’s financial report for the first half of 2019 noted a year-on-year fall in revenue from $329.7million to $362.5m, as reported in Muscat Daily.
Galfar’s consolidated net profit from continued operations also dropped by more than 17% to $6.4m in the six months period ended 30 June 2019 compared to $7.7m in the corresponding period of the previous year.
The ninth edition of Arcadis’ Global Construction Disputes Report showed a significant reduction in outstanding payments in the Middle East, from $91million down to $56.7m between 2017 and 2018.
But claimants are being made to wait longer than at any point since 2010, with the average wait time for a resolution now clocking the 20 month mark.
A Galfar company statement said: “The board and management continue to explore opportunities to reduce operating expenses, to maintain our competitiveness and to improve the financial results whilst strengthening the company’s financial position.
“The company resources are optimised continuously to align with the financial situation.”