Al-Khodari says accumulated losses widened to 44% as of June 30

Abdullah A. M. Al-Khodari Sons Company said that its accumulated losses as of June 30, 2018 widened to SAR 247 million, representing 44 percent of capital.

The Saudi contractor had losses of SAR 27 million, or 5 percent of capital, as of March 31, 2018.

The widened losses were attributed to booking a provision for impairment in commercial receivables and other debit balances with original contract value of SAR 200 million. The adjustment was applied retroactively to adjust previous financial results on the implementation of IFRS 9.

Al-Khodari emphasized that it will communicate with clients to collect dues and accelerate the pace of construction projects to convert the contracts into receivables.

Separately, the company said that there were no new awarded projects during Q2 2018, compared to SAR 8.9 million worth projects during the same quarter last year.

The value of backlog stood at SAR 2.44 billion at the end of Q2 2018, compared to SAR 2.73 billion for the same quarter last year.

Al-Khodari reported a second-quarter loss of SAR 4.8 million, and a net profit of SAR 1.9 million during H1 2018.