Companies in Salalah disclose damages due to Mekunu

Companies disclose damage

Several companies operating in and based out of Salalah and the Dhofar governorate have disclosed details of the damages incurred  in the aftermath of the tropical storm ‘Mekunu’, which tore through Dhofar and Al Wusta governorates causing widespread flooding in the southern and central regions of Oman.

Raysut Cement Company said in a disclosure on the MSM website that some external damages such as water logging in the production buildings and stock yard caused the company to stop production for about 8 to 10 days.

Hilton Salalah Resort said the hotel had stopped its normal operations until further notice. Salalah Beach Resort Company which operates the hotel said in a disclosure on the MSM website: “Due to the effect of cyclone ‘Mekunu’, the Hotel, Hilton Salalah Resort, has had various damages and hence the hotel is currently closed for normal operations until further notice. We are currently in the process of assessing the damages and are working closely with our insurance companies. The Management is confident that most of the costs / losses including Loss of Profit will be covered under our various insurance policies.”

Salalah Port Said that it had suffered extensive damages by the cyclone. “Recovery and salvage operations are ongoing. It is expected to take a minimum of 72 hours to make the Port safe and will update you when the Port resume operations,” the Port said in its disclosure.

Sembcorp Salalah Power and Water Co has temporarily closed it water production plant. The company said it took all necessary measures to minimise the impact of the cyclone. “Our preliminary assessment is that the total impact due to Cyclone is not expected to be material. However, the total impact of the Cyclone on plant operations cannot yet be precisely assessed at this point in time. The company is producing power and delivering to Dhofar grid,” said the company in its disclosure.

Dhofar Poultry Company said the roof of its breeding sheds, slaughterhouse and workers’ accommodation were affected by the cyclone. “Sales losses are concentrated in a two-day sales loss due to the shops closed and the un-access to reach the shops,” the company said in its disclosure. Dhofar Cattle Feed Company said the some of its warehouses were affected by the cyclone. The cow sheds and workers’ accommodation were also affected at Sahlnoot farm.

Al Fajar Al Alamia Co said that the cyclone had caused minor external damages and has impacted on supply to projects in Dhofar region. “The insurance company has been informed and we will disclose the material revenue losses, if any when it is available and after loss evaluation and quantification,” the company said.

Dhofar Insurance Company said the company is currently evaluating the impact on its branches. “Mirbat and Taqqah branches were affected by the power outage while Al Qouf branch was affected by waterlogging in front of its office premises. There is no effect on other branches.

Dhofar International Development & Investment Holding Co (DIDI) said its operations were not affected by the cyclone.

The MSM had issued a circular asking the companies to do urgent disclosure of damages due to Mekunu.


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