The Saudi-based contractor Abdullah Abdul-Mohsin Al Khodari and Sons reported a 70.6 percent decline in the value of net profits during the first quarter of this year amid a significant slowdown in the Kingdom’s construction sector.
The company’s net profits hit 4.11 million riyals during the three months to March compared to 13.98 million riyals in the same period of last year.
The firm registered a 16.4 percent decline in revenues. The drop in profits value is largely attributed to the high costs of completing projects.
It’s worth mentioning that EFG Hermes had forecast the real estate developer to make a net loss of 6.25 million riyals.
Al Khodari has been put under pressure like many other real estate companies due to the cutbacks in government spending due to oil prices slump.
The company signed contracts work 16.2 million riyals during the first quarter from 1.1 billion riyals during the same period of last year to continue its downwards trend which started since the third quarter of last year.