Red Sea Housing's profits up 27%
Company credits growth strategy for second-best set of results
Red Sea Housing Services, the Saudi Arabian producer of temporary accommodation for labour camps, announced a 27% increase in net profit for 2013 of $40.7mn (SR152.8mn).
The company attributed the profit growth to a 12% rise in total revenues, as building sales increased by 14% and rental revenues grew by 3.5%.
In a statement to the Saudi stock exchange, the company said that the results were the second-best in its history in terms of revenues and net profit.
Moreover, it said the net profit figure was its highest for five years, which it attributed to the adoption of its 2020 Growth Strategy, which has seen it push out into new territories and sectors.
It pointed to a recent contract completion in Australia building immigrant camps in Papua New Guinea as an example of its increased geographic spread and said it was "securing more projects to construct labour camps for companies specialising in the mining (and) oil and gas sectors" in its home market.