MCDC sees profits increase 16.8%

Makkah Construction and Development Company’s (MCDC) year-on-year net profits rose 16.8% from US $50.7 million (SAR190 million) to $59.3 million over the past 12 months, the firm announced this morning.

The Saudi Arabia based group’s year-on-year net profits for the last quarter climbed an impressive 37% from $7.2 million to $9.9 million in the fourth quarter of the last financial year alone.

But the result for the last quarter also marked a 26% decrease from the previous quarter’s total net profits of $13.4 million.

Total year-on-year profits for the quarter rose slightly from $13.1 million to $13.6 million.

MCDC was a founding member of the Jabal Omar Development Company, which cancelled its Western Gate Road contract with Jadwa Investment a fortnight ago, as reported on Construction Week Online.

“The rise in operating profit for the quarter was due to the increase in income from residential hotel rooms, income from the Hilton Towers Makkah, and an increase in rental income from retail properties,” the firm said in a note posted on Tadawul, the Saudi Arabia stock exchange.

The rise in operating profit over the 12 month period was attributed to income from the same assets, the firm said. It also highlighted an increase in the occupancy rates at its hotels over the past year as contributing to its annual profits.

MCDC has interests in construction, real estate development and investment, property management, and hotel management.

Along with 18% of the Jabal Omar Development Company, its portfolio also includes Makkah Hilton & Towers and the Makkah Shopping Center, both of which it owns 100%.