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

Al-Khodari auctioned its equipment in a bid to upgrade its fleet [representational image].
Al-Khodari auctioned its equipment in a bid to upgrade its fleet [representational image].

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). 

READ: Saudi's Al-Khodari to auction equipment for Q4 financial boost

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".

 

Most popular

Awards

CW Oman Awards 2020: Meet the winners
A round of the thirteen winning names at the Construction Week Oman Awards 2020 that

Conferences

Leaders UAE 2020: Building a sustainable, 'resilient' infra
AESG’s Phillipa Grant, Burohappold’s Farah Naz, and Samana's Imran Farooq on a sustainable built environment
CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this

Latest Issue

Construction Week - Issue 767
Sep 01, 2020