Abdullah A.M. Alkhodari Sons Company reported earnings results for the second quarter and six months of 2012. For the quarter, the company reported EBITDA of SAR 86.35 million, operating profit of SAR 48.34 million and net profit of SAR 44.49 million or SAR 0.84 per share on revenues of SAR 410.37 million compared to EBITDA of SAR 74.56 million, operating profit of SAR 45.68 million and net profit of SAR 42.64 million or SAR 0.80 per share on revenues of SAR 269.95 million reported a year ago. Revenue was increased by 52% primarily driven by strong growth in contracting revenue. EBITDA increased by 16% on account of higher revenue, impacted by unforeseen local hire of manpower to support the ongoing projects at higher than estimated costs. Operating profit improved by 6% despite SG&A increase of 65% due to significant rise in bidding activities & sharp increase of prices of tender documents, additional costs incurred on training & development of nationals program, delay in issuance of block visas and lower visa numbers resulting costly temp local hire, unassigned manpower costs on awards awaited and payroll costs increase due to local inflation. Net profit increased by 4%, despite higher finance charges as a result of increased borrowing to support strong revenue growth. For the first half, the company reported EBITDA of SAR 164.44 million, operating profit of SAR 94.05 million and net profit of SAR 86.29 million on revenues of SAR 807.09 million compared to EBITDA of SAR 141.2 million, operating profit of SAR 85.87 million and net profit of SAR 81.87 million on revenues of SAR 514.52 million reported a year ago. Strong growth in contracting revenues contributed to rise in net revenues. EBITDA growth is significantly high during the first half, shows its resolve to improve cash from operations. Income from operations was increased by 10% year on year. Net profit increased 5% year on year. Higher net income contributed to rise in earnings per share which increased by approximately 5% year on year. Net cash used in operating activities was SAR 113.188 million compared to net cash from operating activities of SAR 232.587 million reported a year ago. Cash from operations decreased due to investments in working capital to meet the demand for projects spread. The company has posted strong first half results during 2012. The company expects this trend to continue for rest of the year.