Saudi's Jabal Omar Development Co swings back into profit in Q1 '19
Increased residential unit sales contribute to improved Q1 and overall-2018 financials for developer of Makkah's Jabal Omar
Saudi Arabia's Tadawul-listed real estate developer, Jabal Omar Development Company (JODC) has swung back into the black in Q1 2019, reporting net profits of $426,632 (SAR1.6m) – a marked change on Q1 2018 when the developer posted losses of more than $26.7m (SAR120m).
The company, known for its Jabal Omar megaproject in the Holy City of Makkah, attributed its revenue surge to growth in commercial revenue and other income, according to a stock market missive on 12 May.
Positive movement in the company’s first quarter profit-and-loss statement marks a significant improvement over its net loss of $34.2m (SAR128.2m,) in the same period last year.
The developer’s revenues in the first quarter of 2019 hit $47.4m (SAR177.6m) – a 25% hike over the $37.9m (SAR142.1m) it posted in Q1 2018.
In February 2019, the developer announced 2018 net profit after zakat and tax worth $51.7m (SAR193.8m), with the figure also noting an improvement of 67.7% over 2017's net loss of $160m (SAR600m).
Revenue for the period ending 31 December, 2018 stood at $522.7m (SAR1.96bn), a mammoth 245% increase on the corresponding end-2017 figure of $151.7m (AED568.8m).
In 2018, JODC recorded $320m (SAR1.2bn) in sales from residential units, while its hotel and commercial centre revenues respectively grew by 28% and 60%.
According to the Tadawul-listed company, this ‘multi-sector growth’ contributed to its overall revenue hike for 2018.
Commenting on its 2018 performance, the company said in a stock market filing: "The management was able to better manage expenses, despite the expansion in operating and investment activities."
JODC is currently carrying out development work on Phase 2 of Jabal Omar. A contract of undisclosed value for the project – located within walking distance of Makkah Grand Mosque – was awarded to UAE-based Al Arif Contracting in September 2018.