Al Hassan Engineering Company’s board of directors have been dissolved according to a Capital Market Authority (CMA) decision, which has also appointed a temporary board of directors for three years as of now. Their operations maybe extended by CMA if required.
The CMA statement, posted on the Muscat Securities Market website, states that it was dissolving the board in accordance with Article (148) of Oman’s Commercial Companies Law, promulgated by Royal Decree No 18/2019.
The temporary board will be chaired by Ali Mohammed Jumah Al Lawati, with members to include Abdulla Said Al Shuely, Baha Mohammed Redha al Lawati, Al Salt Mohammed Al Kharusi, Ilham Murtadha Habib Al Hameed, Said Salam Al Shaqsi, and Zubair Rafeez.
According to the statement, a vice-chairman and a company secretary are to be appointed during the board’s first meeting, with the interim board also required to implement actions and organisational changes required “to ensure the continuity of operations, financial stability, and mitigate risks to shareholders”.
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The Omani construction contractor services engineering, procurement, and construction (EPC) services for oil and gas, petrochemicals, and utilities projects and has been struggling with cash flow, payment delays and disputes.
The company had reported OMR1.9m loss for first half of 2018, followed by the consolidated loss of OMR26.74m for its full-year trading figures for 2017. Al Hassan Engineering Co also shut down its UAE operations with its subsidiary filing for liquidation in April.
However, the MSM-listed EPC contractor had reported an increase in year-on-year profits for the first six months of 2019. The company’s profits for the period ending June 30 2019 showed an increase of 134% at OMR912,000 as opposed to the OMR2.7mn in losses during the same period last year.
