Saudi-listed Al-Khodari reports 88% drop in Q3 contract awards
The listed contractor's backlog was valued at $693m at the end of Q3 2017, a decline compared to its third-quarter backlog worth $800m last year
Saudi Arabian construction company, Abdullah A M Al-Khodari Sons Co, reported an 88% decline in contract awards during Q3 2017.
The listed contractor was awarded contracts worth $2.4m (SAR9.1m) during the third quarter of this year, a reduction against Q3 2016's $21m (SAR78.4m).
Al-Khodari's backlog was valued at $693.2m (SAR2.6bn) at the end of Q3 2017, a decline compared to its third-quarter backlog value of $800m (SAR3bn) last year.
Q3 2017 revenues amounted to $29.8m (SAR111.8m), 41% lower than Q3 2016's revenues, worth $50.6m (SAR190m).
However, the contractor posted a 57% decrease in its quarterly net loss figures, from $14m (SAR53.2m) in Q3 2016, to $6.1m (SAR22.8m) in the third quarter of this year.
This decline was attributed to Al-Khodari's direct costs reducing by 52%, the company said in a filing to the Saudi bourse, Tadawul.
Reduced direct costs also resulted in gross profit worth $965,250 (SAR3.62m) in the third quarter 2017, which is an improvement over Q3 2016's gross loss, worth $9.4m (SAR35.2m).
Al-Khodari said the 41% decline in its revenues was caused due to slow progress on project works, in addition to the "decline in new project awards, significant liquidity challenges facing the contracting industry due to delay in payments, reprioritising of projects by the government, and [an] extended slowdown in the construction sector".