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Saudi construction firms suffer 39% profit drop

Kingdom’s 16 listed building companies net $140.6mn in first nine months of 2014

Riyadh, Saudi Arabia.
Riyadh, Saudi Arabia.

Saudi Arabia’s 16 publicly-listed construction and building companies have experienced a collective drop in net profits of 39% in the first nine months of this year.

During the period the firms recorded combined net profits of SAR528mn ($140.6mn) compared to SAR871mn ($232mn) in the same period last year, said a report in Arab News.

The third quarter of this year saw the companies’ profits fall sharply by 80% to SAR 62.5mn ($16.6mn) compared to SAR320.2mn ($85.2mn) in the same period last year, it added.

Compared to the previous quarter, when profits of SAR143.7mn ($38.2mn) were recorded, Q3 saw a 56% slump in the figure.

According to the report, the 16 listed companies in the Saudi construction sector have a market capitalisation of SAR30.3bn ($8.07bn) – or 1.6% of the Saudi capital market. Their capitals stand at SAR9.01bn ($2.03bn), the report added.

The performance of the listed construction firms varied in the last nine months, with 12 companies registering net profits of SAR 1.15bn ($306mn), whereas the remaining four firms suffered losses worth SAR620mn ($165mn), said the report.

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