2014-08-18 09:42:58 - Company’s latest financial report shows Net Income of SAR 84.3 million
August 18, 2014
Red Sea Housing Services Co. (RSH) has posted outstanding performance for the first half of 2014, revealing Operating Income of SAR 41.59 million, a growth of 17.69 per cent compared to the same period of 2013. The company’s upward trajectory also shows a 23.13 per cent and 22.64 per cent increase for second quarter in Net Profit and Gross Profit, respectively. The second quarter Net Profit stood at SAR 40.78 million, while the Gross Profit jumped to SAR 67.5 million.
During the first six months of 2014, RSH’s Net Profit surged to SAR 84.3 million, reflecting an increase of 30.01 per cent as compared to the SAR 64.84 million posted during the first six months of 2013. Gross
Profit also grew by 28.7 per cent to SAR 139.91 million, while the Operating Income reached SAR 87.68 million, an increase by 26.47 per cent.
Mohammed Othman Mallawi, Investor Relations Manager, RSH, explained that the increased figures can be attributed primarily to the improved sales of housing units and the noticeable increase in rental revenues, leading to a higher net profit for the first half of this year.
“Another net profit growth driver was the 26.07 per cent increase in gross profit margin during the first six months of the year as a result of higher revenues and lower camp’s installation costs,” Mallawi said. “The financial results for the second quarter, meanwhile, showed remarkable improvement compared to the same period of 2013. The recent accomplishments demonstrate our intensified efforts and strong commitment to further strengthen RSH’s robust presence in major markets and make a footprint in new and promising international markets around the world. All our initiatives are evidently in line with the company’s 2020 Growth Strategy.”
“The company’s recent development project worth SAR 67 million in Papua New Guinea is also expected to further bolster our financial performance. The project, which covers over 70,000 square meters, involves the construction of 150 housing units in Bomana Area for the local police force. The financial impact of this project shall reflect on the financial results for Q3 2014. The positive developments that we witnessed during the second quarter and first half of 2014 were the result of our continuing commitment to offer high-quality residential solutions to our customers across the globe,” Mallawi concluded.
With presence in 60-plus countries, Red Sea Housing Services Company (Tadawul: 4230) is the world’s leading designer, manufacturer, financier and manager of large-scale accommodation solutions, with specialist expertise in supplying building materials, affordable housing to economically-developing countries and fast, turnkey satellite living localities to the construction, energy and Government sectors globally.