Saudi's Al-Khodari reports second successive loss in Q4 2015

Posted on 21st January 2016

Saudi Arabian contractor Abdullah Abdul Mohsin al-Khodari and Sons reported a second successive loss in the fourth-quarter of 2015.

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The company made a net loss of $277,400 (SAR1.04m) in the three months to 31 Dec, compared to a net profit of $12.1m (SAR45.6m) in the year-earlier period, according to a statement to Riyadh's bourse.

The firm attributed the loss in part to a drop in revenue and a rise in construction costs, adding, "costs had been raised further by a recent government decision to hike energy prices in the kingdom".

The company, like many construction-related firms, has been put under pressure by a slowdown in the sector, caused by cutbacks in state spending due to lower oil prices, according to Constructionweekonline news report.

New contract awards in Q4 2015 stood at $3.1m (SAR11.9m), down significantly from the corresponding quarter of 2014, with the company saying that most government entities did not proceed with awards running up to the 2016 budget announcement.

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