Saudi contractor Khodari swings to Q4 loss

20/01/2016 07:42 AST

Saudi Arabian construction firm Abdullah Abdul Mohsin Al Khodari and Sons on Tuesday said it had swung to a fourth-quarter net loss as margins and revenue fell and financial charges increased.

The company made a loss of SR1.04 million ($277,333) in the three months to December 31, the company said in a statement to Riyadh's bourse. This compared to a profit of SR45.6 million in the year-earlier period.

The firm's quarterly revenue dropped 14.2 per cent, while its gross margins fell largely because of higher energy prices being factored into its construction costs after government reforms announced at the end of last year.

Khodari's financial charges increased by 36 per cent. The company, like many construction-related firms, has been pressured by a sector slowdown caused by cutbacks in state spending due to lower oil prices - Khodari also reported a loss for the third quarter of 2015.

New contract awards in the fourth quarter stood at SR11.9 million, down from SR1.48 billion in the corresponding quarter of 2014.

Trade Arabia