Emaar The Economic City suffers losses in Q3, 9M
-2.47% 8.69 -0.22
Riyadh – Mubasher:Emaar The Economic City on Thursday said it suffered losses in the third quarter and nine-month period of 2018.
The real estate developer incurred SAR 150 million ($39.99 million) in net losses after deducting zakat and taxes versus SAR 27 million ($7.20 million) in profits in the corresponding period of 2017.
Sales amounted to SAR 112 million in Q3-18, down 58.36% year-on-year from SAR 269 million, the company said in a statement to the Saudi Stock Exchange (Tadawul).
Emaar The Economic City attributed its quarterly losses to higher industrial land sales and progress in industrial land projects in Q3-17.
Loss on new operating assets during Q3-18 has also led to a gross loss during the period, the Saudi-listed firm said, citing other reasons for the losses such as lower other income, a decrease in income share from a joint venture, higher depreciation, marketing, and administrative expenses, and a rise in Zakat and impairment loss.
As for the nine months to September, Emaar The Economic City logged SAR 196 million losses after zakat and taxed against SAR 43 million in profits in the same period of 2017.
The company suffered an operating loss of SAR 222 million against SAR 5 million in operating profit in the first nine months of 2017, it said.
Meanwhile, sales fell 21.36% year-on-year to SAR 637 million during the January-to-September period of 2018 from SAR 810 million.
Emaar The Economic City previously reported turning to losses in Q2-18 with SAR 45 million against generating a net profit of SAR 35 million in Q2-17, while for H1-18, the company also suffered a loss of SAR 42 million against SAR 16 million in profits in the prior-year period.
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