Firms told to disclose damages after Mekunu
May 27, 2018 | 5:03 PM
by Times News Service
Times file picture

Muscat: Muscat Securities Market (MSM) has issued a circular calling on public shareholding companies to disclose the damage caused by cyclone Mekunu.

The cyclone hit Dhofar and Al Wusta governorates on Saturday, May 26, but the effects were felt even before it made landfall. The strong winds and heavy rain resulted in the death of four people, besides damaging roads, and public and private property.

"We would like to inform you that Dhofar Cattle Feed Company at Salalah was affected... the roof of warehouses storing raw materials for the feed mill is damaged," said Sheikh Salim Al Kathiri, GM Operation.

Al Kathiri added: "The cow sheds and workers' housing were also damaged at Sahlnoot farm. As for the dairy plant, the losses are concentrated in a two-day sales loss, as shops remained closed and inaccessible. The insurance company has been informed and we will disclose the loss after evaluation and quantification."

The Dhofar Poultry Company also said it had been affected by cyclone Mekunu. Salim Al Mashani, CEO of the company, said: "The roof of breeding sheds and the slaughterhouse and workers' housing were damaged. Sales losses are concentrated in a two-day sales loss, as shops remained closed and inaccessible. We will disclose the loss after evaluation and quantification by the insurance company."

The Dhofar Insurance Company announced in its discloser report that: "We would like to inform our investors and customers that... the company is currently evaluating the impact on its branches. Mirbat and Taqqah branches were affected by the power outage and Al Qouf branch by the water in front of the branch. There was no impact on other branches."

Sembcorp Salalah Power and Water Co said in a report: "On 25 May, 2018, Cyclone Mekunu storm made landfall near Salalah. The company, with the help of its staff, took all necessary measures to minimise the impact. Our preliminary assessment is that the total impact is not expected to be material."

The company produces power and distributes it to the Dhofar grid. Its water production plant is temporarily shut down due to a severe worsening of sea conditions during the cyclone, conditions that still persist.

"Raysut Cement Company, Salalah, has been affected by climatic conditions and the (Mekunu) cyclone during the previous two days, which has caused some external damages, waterlogging in the production buildings and stockyard. This has the impact of production stoppage for eight to 10 days. We will disclose the losses evaluation and quantification by the insurance company," said Ghose Krishna, Chief Executive Officer of Raysut Cement Company.

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