DUBAI: Saudi property developer Dar Al Arkan reported a sharp drop in profits last year as sales fell.
Net income plunged 94 percent to SR18.8 million ($5 million) as overall revenues dropped 44 percent to SR1.94 billion.
A fall in the developer's lease revenue and the increase in finance costs were partially offset by an a rise in income received from Islamic deposits, it said in a Tadawul filing.
The regional real estate sector has been hit hard by the coronavirus pandemic as some buyers delayed plans for big purchases while house hunting also faced practical obstacles as lockdowns made it harder for would be buyers to visit sales offices or visit show homes.
Founded in 1994, Dar Al-Arkan Properties is headquartered in Riyadh and has contributed to the development of more than 30 commercial, residential and real estate projects in the Kingdom.
Saudi developer Dar Al Arkan profit drops as sales shrink during pandemic.
https://arab.news/gnjh2
Saudi developer Dar Al Arkan profit drops as sales shrink during pandemic.
- Income from deposits rise
- Developer expands into Europe
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
