Emaar EC deepens 9M 2024 loss to SAR 1.15B; Q3 at SAR 459M

Emaar The Economic City (Emaar EC) slid into a deeper loss of SAR 1.15 billion in the first nine months of 2024, compared to SAR 49 million in the prior-year period.

The losses were attributed to a 74% year-on-year (YoY) slump in revenue. Emaar EC reported a decline in project revenue on delays in sealing new contracts in the commercial sector and the Industrial Valley.

The company reported a decline in operating revenue, weighed down by the hospitality segment. Operating expenses (OpEx) and the provision for expected credit losses rose by SAR 73 million and SAR 37 million YoY, respectively. Finance costs also increased by SAR 146 million on higher SAIBOR. Emaar EC sustained a loss of SAR 69 million from its equity-accounted investee.

In Q3 2024, the company swung to a net loss of SAR 459 million, against a net profit of SAR 27 million in the year-earlier period as topline fell by 73% YoY on lower project revenues.

OpEx and ECL provisions jumped SAR 85 million and SAR 8 million on an annual basis, respectively.

Sequentially, Emaar EC’s net losses widened by 34.1% from SAR 342.2 million in Q2 2024.

The company cited an increase in the professional fees for the activities related to the capital optimization plan initiatives. Meanwhile, the quarterly topline grew by 20% driven by better residential unit sales.

Total shareholders’ equity, no minority interest, dropped to SAR 5.24 billion as of Sept. 30, 2024, from SAR 6.61 billion a year earlier.

Accumulated losses reached SAR 6.1 billion by the end of September 2024, representing 53.83% of the company's capital.

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