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Sat 11 Jul 2009 12:29 PM

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Lower sales hit Saudi Dar Al Arkan Q2 profit

Real estate co's Q2 earnings fell to SR618.3m ($164.9m) down from SR687.5m a year earlier.

Lower sales hit Saudi Dar Al Arkan Q2 profit
DEEP HIT: Dar Al Arkans second-quarter profit fell 10.1 percent. (Getty Images)

Dar Al Arkan Real Estate Development Co, Saudi Arabia's largest property developer by market value, said second-quarter profit fell 10.1 percent after a drop in housing units' sales.Second-quarter earnings fell to 618.3 million riyals ($164.9m) down from 687.5 million riyals a year earlier, the company said in a statement on the Saudi bourse website.

Quarterly housing sales were lower compared with last year's figures, which had been boosted by a housing project in Mecca. It did not give figures.

Operating profit fell by 14.6 percent to 668.2 million riyals, the firm said.

Earnings per share were 0.97 riyals in the first six months after 1.06 riyals in the same period a year ago. It did not give quarterly share earnings.

Last week, Dar Al-Arkan said it would raise around 6.16 billion riyals through issuing bonus shares to help finance expansion to take advantage of a growing gap between demand and supply.

Saudi Arabia needs 1 million new houses by 2014 to meet rising demand, HSBC said in a report last month.

The company said in May it had concluded the issue of an Islamic bond worth 750 million riyals to help fund growth and projects. (Reuters)

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