KSA’s Arriyadh Development Company sees 60% decrease in net profits for Q2 2022
The decrease was mainly attributed to a 70% reduction in income from subsidiary Tanal
Saudi Arabia’s Arriyadh Development Company said that it has achieved a net profit of $15.28mn during the second quarter of 2022, a decrease of 60% compared to the same period last year.
According to its interim financial results, the decrease is mainly due to reduced income from Tanal, its associate company, of 70% due to lower land sales volume. The company also reported a revenue of $16.99mn, compared to $16.76mn for the same quarter in 2021. The total comprehensive income was $15.2mn compared to $39.60mn in Q2 2021.
In July 2022, Arabian Centres Company said it would invest up to $346mn into a new mall in Saudi’s Eastern Province.
Furthermore, general and administrative expenses increased by 184% mainly due to current lawsuits provisions of $2.73mn, as well as the appointment of some senior positions, as per the transformation budget approved by the board directors.
The company’s cost of revenue increased by 15% due to essential maintenance works to upgrade the company’s assets, as well as the appointment of new talents in operations, the results added. However, it also pointed out that operating revenue increased by 1.5% after the completion of the essential maintenance works.
Earlier in July, BATIC Real Estate Company and Al Mqr Development Company launched a residential neighbourhood community project in Madinah, while later in the month, Prince Mohammed Bin Salman Nonprofit City said that the construction of Al Mishraq is underway.
