Jabal Omar trims H1 2023 loss to SAR 67.9 mln; Q2 at SAR 79.8 mln

Jabal Omar Development Co. cut H1 2023 net loss to SAR 67.9 million from SAR 311.1 million in the prior-year period.

This was triggered by a 97% year-on-year (YoY) increase in revenues as a result of better hotel occupancy and average room rates, in addition to growth in the commercial centers revenue.

The company also cited the reversal of the expected credit loss allowance of SAR 44 million due to an improvement in the collection of receivables.

Financial burden expenses dropped by 35% YoY due to the capitalization of finance costs in the current period.

This came despite recording an additional Zakat provision of SAR 190 million, which pushed the company to remain in the red instead of achieving a net profit of SAR 122 million in H1 2023 should the Zakat provision not be logged.

The company also narrowed Q2 2023 loss by 37.9% to SAR 79.84 million, compared to SAR 128.62 million a year earlier.

On a sequential basis, the company's Q2 2023 loss declined significantly from SAR 11.93 million.

Total shareholders’ equity, no minority interest, stood at SAR 12.61 billion by the end of H1 2023, compared to SAR 7.61 billion in the year-earlier period.

Accumulated losses stood at 0.59%, or SAR 68 billion, of capital by the end of H1 2023.

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