Saudi contractor Al-Khodari auctions equipment at $4m profit
The auction, held between 14 and 16 November, saw Al-Khodari sell equipment with a gross value of $9.8m, which generating a gross profit of $3.7m for the contractor
Saudi Arabian contractor, Abdullah A M Al-Khodari Sons Co, announced it had earned a profit from the auction of its equipment fleet held this month.
The auction, held between 14 and 16 November, saw Al-Khodari sell equipment with a gross value of $9.8m (SAR36.8m).
In a missive issued to the Saudi bourse, the contractor said the auction generated a profit of $3.7m (SAR14m) for the company.
Al-Khodari said that the financial impact of the auction would be reflected in its statements for the fourth-quarter of this year.
The company announced this October that the auction was a part of its plans to upgrade its fleets, adding that the operation would have a positive impact on its Q4 2017 financial performance.
Al-Khodari reported an 88% decline in contract awards during Q3 2017, adding that its revenues for the period amounted to $29.8m (SAR111.8m), 41% lower than Q3 2016's revenues, worth $50.6m (SAR190m).
An agreement was inked between Al-Khodari and Abdullah Fouad Holding Company's auction division to conduct the event.
In its October 2017 statement to the Saudi bourse, Al-Khodari said the 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".