Saudi Arabia’s Dar Al Arkan sees profits drop on sales decline

Dar Al Arkan's Mirabilia in Shams Ar Riyadh project. (Supplied)
Updated 05 November 2018
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Saudi Arabia’s Dar Al Arkan sees profits drop on sales decline

  • Shams Ar Riyadh to feature interiors designed by Roberto Cavalli
  • Financing costs hit bottom line

LONDON: 
Saudi Arabian real estate developer Dar Al Arkan said that a decline in property sales has dragged down its profits for the third quarter this year, according to a filing on the Saudi stock exchange.
Net profit after zakat and tax dropped to SR36.7 million ($9.6 million), a decline of 82 percent compared to profits in the same quarter last year, the company said.
Total sales revenues reached SR987.6 million in the quarter, a 33 percent drop compared to the same three-month period last year.
The decline in profit comes as the developer pushes forward with its Shams Ar Riyadh project masterplan which envisages a development featuring residential, commercial and mixed-use spaces to be built across a site spanning 5 million square meters in the capital city.
The project is to be developed around and incorporate the green landscapes of the valley that cuts through Riyadh known as the Wadi Hanifa.
Dar Al Arkan said it was seeking official accreditation for three new development zones within the broader masterplan as well an off-plan sales licence for those property projects already under construction.

In May the developer launched its SR600 million Mirabilia luxury villa project to be built within the Shams Ar Riyadh complex, with the upscale residential villas to feature interiors designed by Italian designer Roberto Cavalli.
Dar Al Arkan also blamed the drop in third-quarter profits on the increasing cost of finance as well as lower lease revenue. The developer said some of the decline was offset by increases in non-operating income generated by deposits.
The company’s performance over a nine-month period looked more promising than its quarterly results, with net profit for the year-to-date more than doubling compared to the same time period last year to reach SR476.3 million.
Dar Al Arkan recorded net profit of SR232.7 million in the first nine months of 2017.


Oil rises on US-Iran tensions, but trade war concerns weigh

Updated 35 min 31 sec ago
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Oil rises on US-Iran tensions, but trade war concerns weigh

  • There are expectations producer club OPEC will continue to withhold supply this year
  • President Donald Trump on Monday threatened Iran with ‘great force’ if it attacked US interests in the Middle East

SINGAPORE: Oil prices rose on Tuesday on escalating US-Iran tensions and amid expectations that producer club OPEC will continue to withhold supply this year.
But gains were checked by concerns that a prolonged trade war between Washington and Beijing could lead to a global economic slowdown.
Brent crude futures, the international benchmark for oil prices, were at $72.24 per barrel at 0534 GMT, up 27 cents, or 0.4 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were up 26 cents, or 0.4 percent, at $63.36 per barrel.
“Escalating tensions between the US and Iran, in addition to signs that OPEC will continue its production cut, drove oil higher,” said Jasper Lawler, head of research at futures brokerage London Capital Group.
US President Donald Trump on Monday threatened Iran with “great force” if it attacked US interests in the Middle East. This came after a rocket attack in Iraq’s capital Baghdad, which Washington suspects to have been organized by militia with ties to Iran.
Iran said on Tuesday that it would resist US pressure, declining further talks under current circumstances.
The tension comes amid an already tight market as the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been withholding supply since the start of the year to prop up prices.
A meeting has been scheduled for June 25-26 to discuss the policy, but the group is now considering moving the event to July 3-4, according to OPEC sources on Monday, with its de-facto leader Saudi Arabia signaling a willingness to continue withholding output.
Price gains were constrained by pressure on financial markets, which have this week been weighed down by worries that the United States and China are digging in for a long, costly trade war that could result in a broad global slowdown.
Singapore, seen as a bellwether for the health of the global economy, on Tuesday posted its lowest quarterly growth in nearly a decade of 1.2 percent year-on-year. Growth in Thailand, a key Asian emerging market, also slowed to a multi-year low.