Riyadh-listed contractor records fourth quarter losses

20 January 2016

New contract awards in the fourth quarter stood at SR11.9m, down from SR1.48bn in the same period last year

Saudi Arabia’s s Abdullah A.M. al-Khodari Sons has reported a net loss in the fourth quarter of 2015, citing declining revenues and increased financial charges for the poor performance.

The company made losses of SR1m ($277,000) in the final quarter of 2015, according to a company statement released on the Saudi Stock Exchange (Tawadul). This is a significant decline from the SR46m profits recorded in the same period last year.

The results from the final quarter of last year are attributed to the combination of the firm’s quarterly revenues falling by 14.2 per cent and a 36 per cent increase in financial charges, according to the statement.

Khodari has also suffered from a slowing down of the construction sector in the kingdom with the decline in oil prices having a significant impact on contract awards and new projects.

New contract awards in the fourth quarter stood at SR11.9m, down from SR1.48bn in the same period last year.

In May, MEED reported that Abdullah A M al-Khodari Sons Company refinanced $403.7m of Islamic loans from three banks. It also secured new financing from Abu Dhabi Commercial Bank (ADCB) worth $61.3m, with the credit agreement expiring on 31 March 2016.

 

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