Saudi-based Dar Al Arkan Real Estate Development Company has registered a 77 per cent drop in its net profit for the first six months which plunged to SR22.8 million ($6.07 million) from SR100.47 million ($26.7 million) last year.

 

This was mainly due to the lower real estate sales, lower rental revenue and higher financing charges, which were partially offset by lower operating cost and higher other revenue, said the company in its statement to Saudi stock exchange Tadawul.

 

The Saudi real estate group also witnessed a nearly 40 per cent decline in its revenue which fell to SR1.05 billion from the last year's figures of SR1.75 billion.

 

The decrease in net income was mainly due to the lower property sale, it stated. 

 

Dar Al Arkan said the fall in lease revenue and the jump in finance costs were partially off-set with the decrease in operating expenses and hike in non-operating income received from deposits and the increase in income received from associates and impacted the net income.

 

On its second quarter results, the Saudi developer said its net profit for the period fell 86 per cent to SR10.4 million from SR74.9 million a year earlier on lower property sales.

 

The profit or loss per share stands at 0.02 and 0.09 for the current period and the similar period to the previous year respectively, it added.-TradeArabia News Service