Saudi Arabia-based Kingdom Holding, the investment holding company controlled by billionaire Prince Alwaleed bin Talal, said its first-quarter net profit slumped 25.4 per cent as income declined and finance charges rose.
The investment firm, which owns stakes in some of the top global companies such as Citigroup and Twitter, made a net profit of SR103.97m ($27.73m) for the three-month period ending on 31 March. This compares to SR139.38m reported for the corresponding period in 2015, the company said in a statement to
Kingdom Holdings gross profit slipped to SR263m, down from SR299m at the end of first quarter of last year.
A decrease in income from associates and Joint ventures and other income in addition to decrease in dividends, were cited as the reasons for decline in profits. The income also got affected by an increase in finance charges, the company said in the statement.
Kingdom Holding completed the refinancing of a $381.3m loan facility, in January this year, which was backed by the Four Season Hotel Group. Frances Credit Agricole Corporate and Investment Bank, Germanys Natixis Pfandbriefbank and Frances Societe Generale Corporate and Investment Banking acted as co-lead arrangers, on the loan facility, while Credit Agricole acted as facility and security agent.
Kingdom Holding is a stakeholder in Jeddah Economic Company, the developer of the worlds tallest tower in Jeddah Economic City, which is expected to be completed by 2018.
The company was formed in 2009 to finance Kingdom City and is made up of stakeholders comprising Kingdom Holding, Abrar Holding Company, a businessman named Abdulrahman Hassan Sharbatly and Saudi Binladin Group.
Emaar, Dubais top realtor and developer of Burj Khalifa, currently the tallest tower in the world, has announced plans to build another tower, which will be a notch higher than the Burj. The $1bn tower designed by Spains Santiago Calatrava Valls that will be the centre piece of Emaars Dubai Creek Harbour development and will be ready before the emirate hosts Expo 2020.