Al Mahhar Holding eyes two acquisitions, plans expansion in other GCC markets

The newly listed Al Mahhar Holding is planning to acquire two domestic companies and has chalked out plans for its subsidiaries to expand into the other Gulf countries, according to its top official.
The company, a prominent player in the energy and infrastructure sectors, has started due diligence on one; and expecting to complete both the acquisitions within this fiscal in view of the immense opportunities in the country's hydrocarbons sector.
"We are looking at two acquisitions right now (locally) in the oil and gas sector. On one, we have started due diligence," Al Mahhar managing director Clifford W Lasrado told Gulf Times on the sidelines of a function to mark its debut on the Qatar Stock Exchange's venture market.
However, he declined to give further details but expressed the hope that both the acquisitions could be completed within this fiscal year.
Asked whether the company was looking at raising capital from the market to finance its proposed acquisitions, Lasrado replied in negative as he said "funding is not at problem and we can do it ourselves."
Al Mahhar had fully acquired Petrotec’s equity in April 2022 and the deal was structured through an in-kind contribution.
In its listing prospectus, Al Mahhar had hinted at its expansion plans for its subsidiaries.
"We are already working in Kuwait and Oman and we are now looking at opportunities in the other GCC countries," Lasrado confirmed.
The group is currently present in Oman through Solarca, a joint venture between the company and Solarca, which expanded its operations to serve oil and gas clients in Kuwait and Oman in 2019.
On the domestic front, the company is hopeful of doing more businesses in view of the increasing investments in Qatar's hydrocarbons sector.
Asked how the North Field Expansion (NFE) will benefit Al Mahhar Holding, he said, "It is much more than that (NFE). There are petrochemicals, fertilisers, and offshore projects. We are the suppliers to them and provide services to them, so definitely we will be in the running."
The group is assessing the feasibility of expanding in the medium term into manufacturing, assembly, as well as system integration of certain products and equipment related to the energy sector in-house in Qatar as it believes that QatarEnergy’s ongoing localisation programme (Tawteen) is a major driver for these opportunities.
The company’s major sources of revenue come from the sale of equipment and products under agency agreements representing various OEMs in Qatar and from the provision of industrial specialised services provided by the portfolio companies. Other revenue sources include equipment rental and design and assembly of electrical switchgear.
Energy sector contributed 78.2% to the group’s total revenue in 2021. Revenue from sale of goods contributes 69-71% to its revenue; while revenue from services and rentals make up the remainder.