Red Sea Housing Services Co. announced earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported net profit of SAR 31.5 million against SAR 17 million a year ago. Operational profit was SAR 39.1 million against SAR 22.5 million a year ago. The increase in net profit compared to the same quarter of last year is due to the increase in gross profit margins from 24.8% in second quarter of previous year to 26.3% in current quarter which has resulted from the increase in building, rental and paint revenues and lower cost of sales for rentals. Net profit has further improved due to decrease in total operating expenditure by 14.4% which is mainly attributed to the decrease in provisions for doubtful receivables, employee cost and recruitment expenses. For the six months, the company reported net profit of SAR 63.6 million against SAR 47.1 million a year ago. Operational profit was SAR 78.4 million against SAR 57.7 million a year ago. Earnings per share were SAR 1.1 against SAR 0.8 a year ago. Net profit increased against the same period of last year due to a increase in gross profit margin from 24.6% in same period last year to 27.0% in the current period which has resulted from increase in rental and paint revenues and lower cost of sales for rentals. Net profit has further improved due to the decrease in General and Administrative costs by 7.8% compared to same period of last year, however due to increased efforts on selling there was an increase in selling and marketing expenses by 10.0% compared to same period last year.