Al Maha Petroleum bags OMR91mn contracts from Raeco, Mwasalat

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Al Maha Petroleum Products Marketing Company has bagged two contracts valued at OMR91 million for supplying gas oil to Rural Areas Electricity Company (Raeco) and to build and operate a new fuel station for national transport company Mwasalat at its headquarters.

The first contract, valued at OMR73 million, is for supplying 380 million litres of gas oil to Raeco for a two-year period starting on September 1, 2017, Al Maha said in a disclosure statement posted on the Muscat Securities Market website.

The second contract, valued at OMR18 million, is for design, built, operate and maintaining a new fuel station for Mwasalat at its headquarters and also to supply fuel for all the buses, starting from May 31, 2017 for a period of 10 years or 100 million litres, whichever comes first.

The estimated tender amounts are likely to change, based on a monthly fuel price change by the Ministry of Oil and Gas. From January this year, the ministry started announcing the price of petroleum products (mainly petrol and diesel) at the beginning of the every month.

Meanwhile, Al Maha has achieved a 20 per cent growth in revenue to OMR101.06 million for the first quarter of 2017, against OMR84.18 million for the same period of last year. The company’s cost of sales and operating expenses also rose by 21 per cent to OMR99.90 million for the first quarter.

However, net profit of the company fell by 23 per cent to OMR1.58 million in the first quarter, compared with the same period last year.


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