RIYADH: Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), yesterday announced the company’s financial results of operations for the third quarter of 2008.
The consolidated net income for nine months that ended on Sept. 30 totaled SR1.06 billion and resulted in an increase of 11.6 percent when compared to the same period in 2007. The consolidated net income for the third quarter of SR226.5 million reflect a minor increase of 0.2 percent with compared to the results for the third quarter of 2007. The decline in the distribution of foreign dividends was offset by the increase in dividends domestically. The hotel operations, for both the company’s owned and managed properties, showed a minor decline in operating results due to the slowdown in global tourism and hotel occupancy.
The company recorded a decline in its portfolio carrying value due to the continuing uncertainty in the world financial markets. During the quarter, the company continued to pursue the development of its two real estate projects in Jeddah and Riyadh, with the recent inauguration of the two colossal projects of Kingdom City in Jeddah and Kingdom Tower in Jeddah at the “Towards the First World” architectural exhibition that was held in Jeddah, under the auspices of the Custodian of the Two Holy Mosques King Abdullah on Oct. 11.
The company successfully concluded a financing arrangement and is in the process of negotiating other facilities to take advantage of several opportunities that are available to it.
Shadi Sanbar, KHC’s CFO and a member of its Investment Committee, believes that despite the reduction in the company’s Net Asset Value and the shortage of liquidity from the banking sectors both internationally and domestically, the company’s financing remains adequate to support its activities.
Prince Alwaleed welcomed the results. He said, “We are pleased with Kingdom Holding’s results and with our grand real estate projects in Saudi Arabia that reaffirms our place as one of the world’s leading real estate developers.”