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Thu 21 Apr 2016 04:27 PM

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Saudi developer Dar Al Arkan sees Q1 profits slump by 60%

Construction giant has reported declining profits in six of the past seven quarters

Saudi developer Dar Al Arkan sees Q1 profits slump by 60%
Dar Al Arkan chairman Yousef Al Shelash

Dar Al Arkan, one of Saudi Arabia's largest property developers, extended an earnings slump as it reported a 60.7 percent fall in first-quarter net profit on Thursday due to declining sales revenue.

Arkan made a net profit of 57.85 million riyals ($15.43 million) in the three months to March 31, versus 147.29 million riyals in the same period a year earlier, it said in a statement.

The latest drop means the company has reported declining profits in six of the past seven quarters, Reuters data shows.

NCB Capital had forecast Arkan would make a quarterly net profit of 82.1 million riyals.

The company attributed the profit decline to lower sales revenue, although it did not provide further information - Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.

Chairman Yousef al-Shelash said in November he expected his company to grow in 2016 as the government prioritises spending on housing despite overall budget cuts prompted by low oil prices.

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