Emaar EC deepens 9M 2022 loss to SAR 627 mln, Q3 at SAR 219 mln

Emaar The Economic City (Emaar EC) widened net losses after Zakat and tax to SAR 627 million in the first nine months of 2022, from SAR 545 million in the year-earlier period.

Emaar EC Group reported year-to-date gross loss of SAR -51 million, which implied an increase in losses by SAR -9 million, -22% compared to a gross loss of SAR -42 million in 9M 2021 due to a decrease in buy orders.

General and administrative (G&A) expenses increased by SAR -41 million during the current period mainly on higher provisions. The group also recorded a decline in other income by SAR -41 million.

In Q3 2022, the company’s net loss after Zakat and tax increased by 26.6% to SAR 219 million, from SAR 173 million in Q3 2021. The group recorded a gross loss of SAR -23.5 million, compared to SAR -4.8 million in Q3 2021.

Finance charges rose SAR -19.8 million due to an increase in average SAIBOR rate and credit spread due to restructuring of long-term loans.

The third-quarter results implied a decrease in the share of results of equity accounted investees by SAR -8 million on completion of the bulk berth terminal of Port Development Company (PDC).

Compared to Q2 2022, net losses narrowed by 11.3% from SAR 247 million, as G&A decreased by SAR 39.5 million. The company reported a decline in impairment loss on receivables calculated in accordance with the expected credit loss model (ECL) as required under IFRS 9 against receivable balances of leasing, utilities and service charges by SAR 10.4 million.

Total shareholders’ equity, no minority interest, dropped to SAR 7.271 billion as of Sept. 30, 2022, from SAR 8.141 billion a year earlier.

Accumulated losses came in at SAR 4.074 billion by the end of the nine-month period, representing 35.94% of the company’s capital.

View More Financial Results