DUBAI: Emaar the Economic City said losses widened after a tough year for the commercial real estate sector.
Losses grew by more than 130 percent to reach SR1.25 billion ($333 million), the company said in a stock exchange filing on Wednesday.
The developer behind King Abdullah Economic City said that beyond the general tough trading conditions created by the pandemic, it also recorded an impairment of SR316 million on properties available for sale and lease and other operating assets.
“Due to the prevailing economic environment and delays in completing projects, the management reassessed life cycle cost estimates of residential and industrial projects and accordingly, the cost estimates were revised, resulting in increase in gross loss by SR307 million as compared to the corresponding year,” the company said in the statement.
Still, it said losses were partially offset offset by an improvement in its hospitality and port development businesses as well as a reduction in administrative expenses.
The developer said it had recently engaged with mortgage and financing companies to make homes in King Abdullah Economic City more affordable and boost its cash flow generation.
It is also pursuing debt rescheduling with its lenders and said that it had agreed with the Kingdom’s Public Investment Fund to convert part of a government loan of R2.83 billion, into equity.
Losses widen at Emaar the Economic City after tough year for commercial real estate
https://arab.news/8e8g7
Losses widen at Emaar the Economic City after tough year for commercial real estate
- Losses grew by more than 130 percent to reach SR1.25 billion ($333 million)
Closing Bell: Saudi main market edges up to 10,745 points
RIYADH: Saudi equities closed higher on Monday, with the Tadawul All Share Index finishing up 135.69 points, or 1.28 percent, at 10,745.45.
The MSCI Tadawul 30 Index also advanced, rising 22.21 points, or 1.57 percent, to close at 1,436.31, while the Nomu Parallel Market Index slipped 31.80 points, or 0.13 percent, to 23,586.94.
Market breadth was positive on the main market, with 216 gainers against 42 decliners, while Nomu saw 42 stocks advancing and 36 declining.
Trading activity picked up, with 261.7 million shares changing hands, while total turnover reached SR5.10 billion ($1.3 billion).
Among the top performers, Saudi Fisheries Co. led the gains, closing at SR63.90, up SR5.80, or 9.98 percent. Naseej International Trading Co. rose to SR34.94, gaining SR3.16, or 9.94 percent, while Dar Al Arkan Real Estate Development Co. ended at SR16.74, up SR1.16, or 7.45 percent.
Zahrat Al Waha for Trading Co. added 6.84 percent to close at SR2.50, and Alamar Foods Co. climbed 5.75 percent to SR42.70.
On the losing side, Al Masar Al Shamil Education Co. fell 4.36 percent to SR23.90, while Saudi Paper Manufacturing Co. declined 2.82 percent to SR62.05.
United International Holding Co. slipped 2.36 percent to SR153.40, Saudi Aramco Base Oil Co. dropped 2.09 percent to SR98.60, and United Electronics Co. eased 1.90 percent to SR85.00.
On the announcement front, Mouwasat Medical Services Co. announced that its board has approved the establishment of a new hospital in Riyadh’s Al-Narjis District, with a planned capacity of 280 beds and a total investment cost of SR900 million.
The project will be financed through a mix of self-funding and long-term Shariah-compliant bank facilities, with further details on timelines and financial impact to be disclosed at a later stage.
Shares of Mouwasat Medical Services Co. closed at SR67.95, gaining SR1.40, or 2.10 percent.
Saudi Arabian Mining Co. reported a net addition of 7.8 million ounces of new gold resources following extensive exploration and drilling activities across multiple sites, alongside the identification of new mineralization opportunities in gold and base metals.
The company noted that the financial impact of these discoveries has yet to be determined and will be assessed in due course.
Shares of Saudi Arabian Mining Co. closed at SR67.50, up SR3.05, or 4.73 percent.
