Financial Results : Red Sea 9M 2024 net loss shrinks to SAR 45.6M; Q3 at SAR 23.3M

Red Sea 9M 2024 net loss shrinks to SAR 45.6M; Q3 at SAR 23.3M

11/11/2024 Argaam Exclusive

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Red Sea International Co. reported a net loss excluding minority interest of SAR 45.6 million for the first nine months of 2024, compared to SAR 52.7 million in the year-earlier period.



Financials (M)

Item 9m 2023 9m 2024 Change‬

Losses before excluding minority interest were trimmed to SAR 2.2 million from SAR 54.7 million a year earlier.

 

Losses per share stood at SAR 1.51 for 9M 2024 from SAR 1.74 a year earlier.

 

Losses per share are calculated by dividing net profit after excluding minority interest by the weighted average number of shares

 

Red Sea narrowed its net loss in the period ending Sept. 30, 2024 thanks to a 516% year-on-year (YoY) jump in revenues, reaching SAR 2.1 billion.

 

This increase was driven by the strategic acquisition of a 51% stake in Fundamental Installation for Electric Work Co. (First Fix) and continuous operational efficiency enhancements.

 

The company reported improved Q3 2024 results, with a net loss of SAR 23.3 million, compared to SAR 14.9 million in Q3 2023.

 

The shift was largely due to its transformation strategy, marked by acquiring 51% of Primary Electrical Installations Company, coupled with amortization charges on intangible assets linked to the acquisition.



Current Quarter Comparison (M)

Compared With The
Item Q3 2023 Q3 2024 Change‬

The company reduced losses in Q3 2024 compared to the year-earlier period thanks to a 480% YoY revenue surge, totaling SAR 705 million.

 

Red Sea widened losses in Q3 2024 to SAR 23.3 million, compared to a SAR 14.96 million loss in Q3 2023.

 

The company incurred losses in the current quarter compared to a net profit of SAR 11.8 million in Q2 2024, due to a slight revenue decline due to timing of revenue recognition in financial statements and lower revenues and margins from fixed cost settlements.

 

The group’s revenues rose to SAR 705 million in Q3 2024, from SAR 121 million in Q3 2023, marking a 480% increase.

 

General construction revenues reached SAR 646 million, driven by consolidating Primary Electrical, while Building sales revenues dropped 55% quarter-on-quarter (QoQ), from SAR 83 million to SAR 37 million. Rental revenues from investment properties fell 42% QoQ from SAR 38 million to SAR 22 million.

 

Gross profit climbed to SAR 74.5 million in Q3 2024 from SAR 5.9 million in Q3 2023, supported by consolidating Primary Electrical and cost-efficiency measures, resulting in a gross margin of 10.56%.

 

Operating profit rose to SAR 15.9 million in Q3 2024, reversing a SAR 8.6 million operating loss in Q3 2023, driven by strong growth in general construction.

 

Selling, marketing, and administrative expenses increased to SAR 58.53 million due to consolidation of Primary Electrical results and intangible asset amortization.

 

Total shareholders’ equity (excluding minority interest) stood at SAR 25.70 million by Sept. 30, 2024, compared to SAR 65.44 million a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2015 275.44 2.4 % 67.16 (7.3 %) 34.43 (25.3 %)
Q2 2015 237.15 (11.4 %) 58.82 (12.9 %) 22.53 (45.8 %)
Q3 2015 228.40 (19.5 %) 48.40 (36.0 %) 7.35 (83.9 %)
Q4 2015 286.90 0.8 % 80.13 0.6 % 33.62 (16.0 %)
Q1 2016 271.78 (1.3 %) 74.95 11.6 % 39.13 13.6 %
Q2 2016 267.32 12.7 % 70.01 19.0 % 38.96 73.0 %
Q3 2016 251.25 10.0 % 60.44 24.9 % 22.29 203.4 %
Q4 2016 240.07 (16.3 %) 57.94 (27.7 %) 20.63 (38.6 %)
Q1 2017 227.33 (16.4 %) 45.28 (39.6 %) 14.90 (61.9 %)
Q2 2017 198.79 (25.6 %) 29.52 (57.8 %) (3.34) (108.6 %)
Q3 2017 186.23 (25.9 %) 23.47 (61.2 %) (7.72) (134.6 %)
Q4 2017 160.77 (33.0 %) (23.12) (139.9 %) (51.35) (348.9 %)
Q1 2018 147.68 (35.0 %) 10.57 (76.6 %) (12.95) (186.9 %)
Q2 2018 201.18 1.2 % 19.38 (34.4 %) (3.40) (1.8 %)
Q3 2018 188.50 1.2 % 15.75 (32.9 %) (7.37) 4.4 %
Q4 2018 121.26 (24.6 %) 32.06 238.7 % (2.77) 94.6 %
Q1 2019 119.24 (19.3 %) 7.01 (33.7 %) (14.72) (13.7 %)
Q2 2019 123.33 (38.7 %) 0.00 (100.0 %) (22.33) (556.9 %)
Q3 2019 141.15 (25.1 %) 2.73 (82.7 %) (21.40) (190.2 %)
Q4 2019 222.34 83.4 % 30.98 (3.4 %) 7.46 369.0 %
Q1 2020 155.47 30.4 % 6.14 (12.4 %) (20.45) (38.9 %)
Q2 2020 128.81 4.4 % 0.40 13366.7 % (25.31) (13.4 %)
Q3 2020 114.00 (19.2 %) (23.32) (955.9 %) (41.51) (94.0 %)
Q4 2020 135.25 (39.2 %) (11.56) (137.3 %) (51.28) (787.5 %)
Q1 2021 108.36 (30.3 %) (8.82) (243.7 %) (28.64) (40.1 %)
Q2 2021 127.66 (0.9 %) (6.32) (1688.2 %) (26.17) (3.4 %)
Q3 2021 119.34 4.7 % (8.63) 63.0 % (27.77) 33.1 %
Q4 2021 112.84 (16.6 %) (4.57) 60.4 % (26.80) 47.7 %
Q1 2022 117.23 8.2 % (3.94) 55.3 % (21.54) 24.8 %
Q2 2022 62.57 (51.0 %) (26.93) (326.1 %) (46.45) (77.5 %)
Q3 2022 89.41 (25.1 %) (32.26) (273.7 %) (51.27) (84.6 %)
Q4 2022 135.00 19.6 % 6.54 243.0 % (66.82) (149.3 %)
Q1 2023 - - - - - -
Q2 2023 - - - - - -
Q3 2023 - - - - - -
Q4 2023 - - - - - -
Q1 2024 659.21 - 68.54 - 29.96 -
Q2 2024 751.74 - 103.05 - 30.73 -
Q3 2024 705.72 - 74.52 - 15.95 -


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2015 30.04 (31.0 %) 0.99 - 30.04 0.99
Q2 2015 17.02 (58.3 %) 0.56 - 17.02 0.56
Q3 2015 1.95 (95.5 %) 0.06 - 1.95 0.06
Q4 2015 27.10 (7.4 %) 0.90 - 27.10 0.90
Q1 2016 31.77 5.8 % 1.05 - 31.77 1.05
Q2 2016 31.16 83.1 % 1.03 - 31.16 1.03
Q3 2016 10.50 439.6 % 0.35 - 10.50 0.35
Q4 2016 16.91 (37.6 %) 0.56 - 16.91 0.56
Q1 2017 8.70 (72.6 %) 0.29 - 8.70 0.29
Q2 2017 (5.57) (117.9 %) (0.18) - (5.57) (0.18)
Q3 2017 (12.66) (220.6 %) (0.42) - (12.66) (0.42)
Q4 2017 (55.77) (429.8 %) (1.84) - (55.77) (1.84)
Q1 2018 (15.42) (277.1 %) (0.51) - (15.42) (0.51)
Q2 2018 (9.82) (76.1 %) (0.32) - (9.82) (0.32)
Q3 2018 (13.78) (8.8 %) (0.46) - (13.78) (0.46)
Q4 2018 (46.73) 16.2 % (1.55) (11.80) (34.93) (1.16)
Q1 2019 (17.97) (16.6 %) (0.59) - (17.97) (0.59)
Q2 2019 (27.53) (180.4 %) (0.91) - (27.53) (0.91)
Q3 2019 (27.89) (102.4 %) (0.92) - (27.89) (0.92)
Q4 2019 (1.47) 96.9 % (0.05) (4.96) 3.49 0.12
Q1 2020 (25.13) (39.9 %) (0.83) - (25.13) (0.83)
Q2 2020 (27.31) 0.8 % (0.90) - (27.31) (0.90)
Q3 2020 (44.83) (60.7 %) (1.48) - (44.83) (1.48)
Q4 2020 (61.05) (4,053.2 %) (2.02) - (61.05) (2.02)
Q1 2021 (32.66) (29.9 %) (1.08) - (32.66) (1.08)
Q2 2021 (29.43) (7.7 %) (0.97) - (29.43) (0.97)
Q3 2021 (31.19) 30.4 % (1.03) - (31.19) (1.03)
Q4 2021 (37.17) 39.1 % (1.23) - (37.17) (1.23)
Q1 2022 (18.82) 42.4 % (0.62) - (18.82) (0.62)
Q2 2022 (47.71) (62.1 %) (1.58) - (47.71) (1.58)
Q3 2022 (56.01) (79.6 %) (1.85) - (56.01) (1.85)
Q4 2022 (73.59) (98.0 %) (2.43) (7.31) (66.28) (2.19)
Q1 2023 - - - - - -
Q2 2023 - - - - - -
Q3 2023 - - - - - -
Q4 2023 - - - - - -
Q1 2024 (6.02) - (0.20) - (6.02) (0.20)
Q2 2024 (15.78) - (0.52) - (15.78) (0.52)
Q3 2024 (23.31) - (0.77) - (23.31) (0.77)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 26.08 % 25.83 % 12.89 %
Q2 2015 26.02 % 24.40 % 11.05 %
Q3 2015 24.76 % 21.56 % 7.63 %
Q4 2015 24.76 % 20.33 % 7.40 %
Q1 2016 25.61 % 20.64 % 7.60 %
Q2 2016 25.94 % 21.75 % 8.72 %
Q3 2016 26.51 % 22.60 % 9.33 %
Q4 2016 25.56 % 22.50 % 8.77 %
Q1 2017 23.70 % 21.09 % 6.82 %
Q2 2017 21.06 % 18.07 % 3.33 %
Q3 2017 18.33 % 15.29 % 0.87 %
Q4 2017 9.72 % 7.52 % (8.45 %)
Q1 2018 5.83 % 3.96 % (12.89 %)
Q2 2018 4.35 % 3.42 % (13.46 %)
Q3 2018 3.24 % 3.51 % (13.58 %)
Q4 2018 11.81 % 9.95 % (11.23 %)
Q1 2019 11.77 % 10.01 % (12.14 %)
Q2 2019 9.93 % 8.31 % (17.05 %)
Q3 2019 8.28 % 6.69 % (21.45 %)
Q4 2019 6.72 % 7.16 % (11.53 %)
Q1 2020 6.20 % 5.40 % (12.00 %)
Q2 2020 6.21 % 4.30 % (11.86 %)
Q3 2020 2.29 % 0.51 % (15.11 %)
Q4 2020 (5.31 %) (11.03 %) (29.68 %)
Q1 2021 (8.90 %) (14.12 %) (34.10 %)
Q2 2021 (10.31 %) (14.76 %) (34.61 %)
Q3 2021 (7.20 %) (12.11 %) (31.46 %)
Q4 2021 (6.05 %) (7.38 %) (27.86 %)
Q1 2022 (4.92 %) (6.01 %) (24.44 %)
Q2 2022 (10.70 %) (12.50 %) (32.74 %)
Q3 2022 (17.72 %) (20.15 %) (41.80 %)
Q4 2022 (14.00 %) (29.33 %) (46.72 %)
Q1 2023 (12.45 %) (26.56 %) (46.75 %)
Q2 2023 (5.10 %) (16.18 %) (35.83 %)
Q3 2023 3.20 % (6.30 %) (24.85 %)
Q4 2023 8.59 % 8.38 % (2.96 %)
Q1 2024 9.60 % 8.23 % (1.46 %)
Q2 2024 11.18 % 7.98 % (0.96 %)
Q3 2024 11.29 % 9.85 % (1.05 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 30.23 4.74 4.74 32.79
Q2 2015 30.23 3.95 3.95 31.31
Q3 2015 30.23 2.59 2.59 31.31
Q4 2015 30.23 2.52 2.52 32.05
Q1 2016 30.23 2.57 2.57 30.61
Q2 2016 30.23 3.04 3.04 30.07
Q3 2016 30.23 3.33 3.33 30.40
Q4 2016 30.23 2.99 2.99 30.81
Q1 2017 30.23 2.23 2.23 31.18
Q2 2017 30.23 1.01 1.01 29.57
Q3 2017 30.23 0.24 0.24 29.16
Q4 2017 30.23 (2.16) (2.16) 27.03
Q1 2018 30.23 (2.96) (2.96) 26.10
Q2 2018 30.23 (3.10) (3.10) 25.69
Q3 2018 30.23 (3.13) (3.13) 25.22
Q4 2018 30.23 (2.84) (2.45) 23.53
Q1 2019 30.23 (2.92) (2.53) 22.91
Q2 2019 30.23 (3.51) (3.12) 22.06
Q3 2019 30.23 (3.97) (3.58) 21.12
Q4 2019 30.23 (2.48) (2.31) 19.94
Q1 2020 30.23 (2.71) (2.55) 19.98
Q2 2020 30.23 (2.71) (2.54) 19.07
Q3 2020 30.23 (3.27) (3.10) 17.59
Q4 2020 30.23 (5.24) (5.24) 14.61
Q1 2021 30.23 (5.49) (5.49) 13.54
Q2 2021 30.23 (5.56) (5.56) 12.57
Q3 2021 30.23 (5.10) (5.10) 11.53
Q4 2021 30.23 (4.31) (4.31) 10.23
Q1 2022 30.23 (3.86) (3.86) 9.61
Q2 2022 30.23 (4.46) (4.46) 8.03
Q3 2022 30.23 (5.28) (5.28) 6.18
Q4 2022 30.23 (6.49) (6.25) 3.91
Q1 2023 30.23 (6.48) (6.24) 3.29
Q2 2023 30.23 (5.53) (5.29) 2.66
Q3 2023 30.23 (4.18) (3.93) 2.16
Q4 2023 30.23 (1.16) (1.34) 2.36
Q1 2024 30.23 (0.75) (0.93) 2.57
Q2 2024 30.23 (0.64) (0.82) 2.85
Q3 2024 30.23 (0.91) (1.09) 0.85

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 16.63 16.63 2.40
Q2 2015 19.69 19.69 2.49
Q3 2015 18.17 18.17 1.50
Q4 2015 19.25 19.25 1.51
Q1 2016 18.59 18.59 1.56
Q2 2016 16.51 16.51 1.67
Q3 2016 13.28 13.28 1.45
Q4 2016 19.62 19.62 1.90
Q1 2017 22.48 22.48 1.60
Q2 2017 38.15 38.15 1.30
Q3 2017 More than 100 More than 100 1.40
Q4 2017 NEG NEG 1.40
Q1 2018 NEG NEG 1.36
Q2 2018 NEG NEG 1.45
Q3 2018 NEG NEG 1.19
Q4 2018 NEG NEG 1.34
Q1 2019 NEG NEG 1.36
Q2 2019 NEG NEG 1.26
Q3 2019 NEG NEG 1.29
Q4 2019 NEG NEG 1.39
Q1 2020 NEG NEG 1.00
Q2 2020 NEG NEG 1.31
Q3 2020 NEG NEG 2.08
Q4 2020 NEG NEG 3.02
Q1 2021 NEG NEG 4.00
Q2 2021 NEG NEG 4.88
Q3 2021 NEG NEG 4.70
Q4 2021 NEG NEG 4.10
Q1 2022 NEG NEG 4.11
Q2 2022 NEG NEG 3.39
Q3 2022 NEG NEG 5.06
Q4 2022 NEG NEG 5.78
Q1 2023 NEG NEG 7.64
Q2 2023 NEG NEG 9.66
Q3 2023 NEG NEG 10.57
Q4 2023 NEG NEG 10.05
Q1 2024 NEG NEG 11.67
Q2 2024 NEG NEG 10.04
Q3 2024 NEG NEG 78.57

Business Segments (Million)

Compared With The
Period General Construction Manufacture & sale property Leasing Paints
Q1 2015 - 165.59 101.37 8.48
Q2 2015 - 125.78 99.86 11.52
Q3 2015 - 109.04 107.64 11.72
Q4 2015 - 144.92 129.91 12.08
Q1 2016 - 144.90 109.31 17.57
Q2 2016 - 142.61 106.14 18.57
Q3 2016 - 140.72 99.25 11.29
Q4 2016 - 135.03 88.92 19.05
Q1 2017 - 128.22 84.72 14.39
Q2 2017 - 105.23 81.14 12.42
Q3 2017 - 98.66 76.24 11.33
Q4 2017 - 77.69 74.08 9.00
Q1 2018 - 70.54 64.99 12.16
Q2 2018 - 123.48 67.30 10.40
Q3 2018 - 110.77 66.99 10.74
Q4 2018 - 41.44 67.39 12.43
Q1 2019 - 54.21 55.69 9.35
Q2 2019 - 62.44 51.32 9.30
Q3 2019 - 77.50 53.11 10.55
Q4 2019 - 158.09 51.30 12.95
Q1 2020 - 91.58 55.10 8.78
Q2 2020 - 67.98 58.00 2.83
Q3 2020 - 70.91 38.83 4.26
Q4 2020 - 88.93 37.72 8.60
Q1 2021 - 54.20 47.00 7.16
Q2 2021 - 66.25 54.94 6.47
Q3 2021 - 69.80 46.48 3.06
Q4 2021 - 54.97 54.57 3.31
Q1 2022 - 78.06 36.09 3.08
Q2 2022 - 16.87 41.42 4.28
Q3 2022 - 42.99 44.08 2.34
Q4 2022 - 101.71 42.98 -
Q1 2023 - 78.82 37.56 -
Q2 2023 - 66.98 38.77 -
Q3 2023 - 83.35 38.25 0.03
Q4 2023 869.25 128.61 36.65 -
Q1 2024 591.08 26.40 41.73 -
Q2 2024 609.29 106.91 35.54 -
Q3 2024 646.34 37.34 22.05 -

Current
Market Cap (M Riyal) 2,010.30
Enterprise Value (EV) (M) 2,642.96
Shares Outstanding ((M)) 30.23
EPS ( Riyal) (TTM) (0.91)
Book Value (BV) ( Riyal) 0.85
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 78.21
Return on Average Assets (%) (TTM) (1.47 )
Return on Average Equity (%) (TTM) (60.48 )

Share Price

66.50
0.40 0.61 %

Red Sea International Co. (RED SEA)


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