RSH reveals 30% growth in profits for H1 2014

Company’s latest financial report shows net income of SAR84.3mn

Mohammed Othman Mallawi, investor relations manager, RSH.
Mohammed Othman Mallawi, investor relations manager, RSH.

Red Sea Housing Services Co. (RSH) has revealed operating income of SAR41.59mn for the first six months of 2014, a growth of 17.69% compared to the same period last year.

The company’s upward trajectory also shows a 23.13% and 22.64% increase for second quarter in net profit and gross profit, respectively. The second quarter net profit stood at SAR40.78mn, while the gross profit jumped to SAR67.5mn.

During the first six months of 2014, RSH’s net profit surged to SAR84.3mn, reflecting an increase of 30.01% as compared to the SAR64.84mn posted during the first six months of 2013. Gross profit also grew by 28.7% to SAR139.91mn, while the operating income reached SAR87.68mn, an increase of 26.47%.

Mohammed Othman Mallawi, investor relations manager, RSH, explained that the increased figures can be attributed primarily to the improved sales of housing units and the noticeable increase in rental revenues, leading to a higher net profit for the first half of this year.

"Another net profit growth driver was the 26.07% increase in gross profit margin during the first six months of the year as a result of higher revenues and lower camp’s installation costs,” Mallawi said.

“The financial results for the second quarter, meanwhile, showed remarkable improvement compared to the same period of 2013. The recent accomplishments demonstrate our intensified efforts and strong commitment to further strengthen RSH’s robust presence in major markets and make a footprint in new and promising international markets around the world. All our initiatives are evidently in line with the company’s 2020 growth strategy.”

The company’s recent development project worth SAR67mn in Papua New Guinea is also expected to further bolster its financial performance. The project, which covers over 70,000m2, involves the construction of 150 housing units in Bomana Area for the local police force.

"The financial impact of this project shall reflect on the financial results for Q3 2014. The positive developments that we witnessed during the second quarter and first half of 2014 were the result of our continuing commitment to offer high-quality residential solutions to our customers across the globe,” Mallawi concluded.

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