YoY net profits down 58% at Saudi Arabia's Sreco in Q1 2019

Revenues at the Tadawul-listed real estate development giant also noted an 8% decline compared to Q1 2018's $21.4m

Sreco is developing Al Widyan in Riyadh [representational image].
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Sreco is developing Al Widyan in Riyadh [representational image].

Net profits after zakat and tax have more than halved at Saudi Arabia's Tadawul-listed real estate developer Al Akaria Saudi Real Estate Company (Sreco)  the developer behind the under-construction Al Widyan megaproject in Riyadh  in Q1 2019 compared to the same period in 2018.

According to its interim financial results for the three months ending 31 March, Q1 2019 net profits stood at $4.9m (SAR18.5m), a 58% decline compared to 2018's corresponding figure of $11.9m (SAR44.6m).

Revenue fell 8% on Q1 2018’s $21.4m (SAR80.2m) figure, hitting $19.3m (SAR72.4m) during Q1 2019.

Reasons for the quarterly year-on-year falls in both revenue and net profit were not given by the real estate firm in its bourse missive.

The figures comes after a busy 2018 for Sreco, one of the kingdom’s biggest real estate companies.

September 2018 saw Sreco award a $292m (SAR1.1bn) infrastructure contract for its 700ha Al Widyan development to Binyah – a 60:40 joint venture between Sreco and Mohammad Ali Al Swailem Group – that will be responsible for developing all of Al Widyan’s infrastructure.

In the same month, Sreco signed an agreement with the Presidency of State Security for various real estate services in Saudi Arabia.

A month later it signed a fund establishment agreement with Alinma Investment Company to establish a fund that will work on three sites in the kingdom’s capital Riyadh.

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