‎“Knowledge City” records losses of SR19 mln in 2022, a decline ‎of 12%‎

Knowledge Economic City Company recorded losses after zakat and tax of 19 million riyals during the year 2022 AD, compared to losses of 22 million riyals in the year 2021 AD, a decline of 12%. This came after today’s announcement of the annual financial results ending in 12-31-2022.

The operational loss amounted to 31 million riyals during the year ending in 2022, compared to losses of 14 million riyals in the previous year, an increase of 115%.

As for the total profit, it amounted to 18 million riyals in the current year, compared to 10.4 million riyals in the previous year, with a growth of 72%.

The loss per share in the current year amounted to 0.06 riyals, compared to losses of 0.07 riyals in the previous year.

The decrease in the net loss for this year compared to the previous year is due to two reasons. The first is the increase in sales this year compared to last year, which led to an increase in the total profit for this year. Secondly, the fair value gain achieved from the derivative financial instrument amounted to 14.6 million riyals.

During the year, the Group entered into a profit rate swap agreement (“Swap Contract”) with Riyad Bank to hedge against future fluctuations in Murabaha rates on loans related to the Knowledge City Forum project. This agreement has been classified as a hedging arrangement since October 01, 2022. The company relies on the counterparty and management experts to evaluate these derivatives as of December 31, 2022.