Emaar EC widens net loss to SAR 352M in Q1 2024

Emaar The Economic City (Emaar EC) incurred SAR 352 million in net loss for Q1 2024, compared to a net loss of SAR 171 million a year earlier.

Sequentially, the company extended its losses from SAR 204.2 million in Q4 2023.

Emaar EC reported a 52% year-on-year (YoY) decrease in revenues in Q1 2024, on lower operating revenues. It reported a decline in leasing revenues on the termination of some contracts.

The company did not sign new contracts in the commercial and industrial valley segments.

It suffered higher operating expenses of SAR 24 million due to an increase in professional fees as a result of performance-improvement initiatives and an increase in marketing expenses, which is expected to be reflected positively during future periods.

The financing costs (FCs) widened by SAR 39 million on higher volume of loans and the effective interest rate as a result of rising SAIBOR.

Zakat expenses soared by SAR 62 million on updating the Zakat provision according to the latest assessment of liabilities. It should be noted that this is a one-time event related to old Zakat assessments and is not expected to affect the financial results in future periods, the company said.

Shareholders' equity (no minority interest) shrank to SAR 6.05 billion by the end of Q1 2024, compared to SAR 6.48 billion a year earlier.

Accumulated losses amounted to SAR 5.29 billion, or 46.69% of capital, as of March 31, 2024.

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