Jabal Omar achieved SR153 mln net profit during Q3‎

Jabal Omar Development Company recorded a net profit after zakat and tax of 153 million riyals during the third quarter, compared to a loss of 270 million riyals in the same quarter of last year. This came after the announcement today of the preliminary financial results for the period ending on September 30, 2022 (9 months).

The operational loss amounted to 93 million riyals in the third quarter, compared to a loss of 58 million riyals in the same quarter of the previous year, an increase of 60%.

As for gross profit, it amounted to 8 million riyals in the third quarter, compared to a loss of 65 million riyals in the same quarter of the previous year.

The net loss after zakat and tax in the 9-month period amounted to 158 million riyals, compared to a loss of 345 million riyals in the same period last year, an increase of 54%.

The loss per share in the current period was 0.17 riyals, compared to a loss of 0.37 riyals in the same period last year.

The reason for achieving net profit of SR 153 million in current quarter compared to net loss of SR 270 million in the same quarter of the last year is mainly attributed to following:

-Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed to limit the spread of the Corona virus, which in turn led to a strong return of activity and demand to the hospitality market in Makkah.

– Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

– Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

The reason for achieving net profit of SR 153 million in the current quarter compared to net loss of 129 million in the previous quarter of current year is mainly attributed to following:

– Reduction in financial charges by SR 113 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

– Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.

The reason for decrease in net loss in current period by 54% compared to the same period of the last year is mainly attributed to following:

1. Increase in revenue as a result of the strong improvement in hotel occupancy rates due to the lifting of precautionary restrictions imposed on travelling to the Kingdom and deactivating social distance requirements in the Grand Mosque, which in turn led to a strong return of activity and demand to the hospitality market in Makkah. This increase is despite following.

– Lifting the above mentioned precautionary restrictions after the months of January and February from the beginning of 2022 AD.

– Continuing to impose restrictions and precautionary measures in some countries of the world

– Controls and precautionary measures imposed during the Hajj season for the year 1443 AH.

1. Reduction in general and admin expenses
2. Reduction in financial charges by SR 338 million as a result completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.
3. Recording a gain of SR 260 million from the completion of the transaction of converting the debts owed to the Alinma Makkah Real Estate Fund into shares in the company.