Jabal Omar turns to SAR 151.3M loss in 9M 2024, SAR 203.6M in Q3

Jabal Omar Development Co. turned to a net loss of SAR 151.3 million in the first nine months of 2024, against a net profit of SAR 237.6 million a year earlier.

The loss-making came amid a 50% year-on-year (YoY) increase in depreciation expenses, mainly due to the opening and operation of Address Jabal Omar Hotel and Jumeirah Jabal Omar Hotel.

In addition, general and administrative expenses rose by SAR 74 million YoY on the impairment of properties booked in this period.

The company also recorded an annual rise of SAR 64 million in provisions for credit losses on other trade receivables, along with a 70% leap in financing costs compared to the same period last year.

However, revenue from the hotels segment jumped 42% YoY during the first nine months of the year. This was due to the gradual increase in revenues from the recently delivered hotels Address and Jumeirah.

Revenue from the commercial malls segment grew by 37% YoY for the same period amid an uptick in the leasing activities of the shopping commercial malls.

This is in addition to the recognition of SAR 95 million in revenues from properties for development and sale.

In Q3 2024, the company widened its loss to SAR 203.6 million, from SAR 305.5 million in earnings for the year-earlier period, hurt by a SAR 37 million hike in depreciation expenses on the opening and operation of Address Jabal Omar Hotel and Jumeirah Jabal Omar Hotel.

On a quarterly basis, the Saudi developer also swung to losses from a net profit of SAR 33.32 million in Q2 2024.

Total shareholders’ equity, after minority interest, stood at SAR 12.75 billion as of Sept. 30, 2024, up from SAR 12.92 billion in the prior-year period.

Accumulated losses amounted to SAR 115.48 million, or 1% of the company's capital, by the end of the current period.

View more financial results