Jabal Omar cuts 9M 2021 net loss to SAR 344.8 mln

Jabal Omar Development Co. trimmed its net loss after Zakat and tax by 62.4% to SAR 344.8 million for the nine-month period ended Sept. 30, 2021, from SAR 917.8 million in the year-earlier period.

The losses were attributed to a decline in other income, due to the gain recognized in the previous period on a land plot sale in Jabal Omar project, which was announced on Dec. 13, 2020, on Tadawul.  

In Q3 2021, net losses after Zakat and tax widened by 14% to SAR 270 million from SAR 237 million a year earlier. Jabal Omar was hit by an increase in financial charges in the current quarter, compared to same quarter of last year, due to the exemption of financial charges owed to Alinma Makkah Real Estate Fund in the comparative quarter.

The company also booked Zakat provision during the current quarter.

The real estate developer swung to losses, compared to a net profit of SAR 270.6 million in Q2 2021.

Commenting on the third-quarter results, Chief Executive Officer (CEO) Khalid Al Amoudi, said that the stringent COVID-19 related restrictions on travel and tourism in the Kingdom have had a severe impact on real estate, retail, and hospitality sectors. As such, the company’s core operating assets continue to be severely impacted by low occupancy and footfall levels. Therefore, a number of measures were taken to control costs and spending.

Al Amoudi also expected improvement in the operating environment next year with the return of pilgrims and Umrah performers. He added that the early signs are positive as steps taken by the government to ease the COVID-19 precautionary measures.

Shareholders’ equity, after minority interest, decreased by 10.3% to SAR 6.643 billion in the nine-month period, from SAR 7.410 million a year earlier.

Accumulated losses reached SAR 2.473 billion in the nine-month period, or 26.6% of the company’s total capital.

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