Emaar EC cuts 9M 2023 loss to SAR 49 mln; earns SAR 27 mln in Q3

Emaar The Economic City (Emaar EC) narrowed net losses to SAR 49 million in the first nine months of 2023 from SAR 648 million in the year-earlier period.

The improved results were mainly due to an increase in sales of real estate assets, and higher other operating income. The real estate developer also recorded lower selling, general and administrative expenses, and revisions in life cycle cost estimates.

However, the positive impact was partially offset by an increase in finance charges.

In Q3 2023, the company turned to a net profit of SAR 27 million against a loss of SAR 231 million in Q3 2022, as the developer reported gross project profit of SAR 275 million in Q3 2023 against a gross loss of SAR 13 million in Q3 2022.

Compared to Q2 2023, the company’s Q3 earnings fell from SAR 95 million as gross project profit dropped by SAR 12 million to SAR 263 million. The gross loss from operating assets increased by SAR 4 million to SAR 42 million.

Total shareholders’ equity, no minority interest, dropped to SAR 6.61 billion as of Sept. 30, 2023, from SAR 7.14 billion a year earlier.

Accumulated losses came in at SAR 4.73 billion by the end of the nine-month period, representing 41.75% of the company’s capital.

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