DUBAI: Saudi construction firm Abdullah A. M. Al-Khodari Sons Co. posted a 42.9 percent slump in second-quarter net profit on Sunday, citing higher costs including from the Kingdom's reforms to the labor market.
The company made a net profit of SR25.4 million ($6.77 million) in the three months to June 30, compared with SR44.5 million in the same period of 2012, a statement to the Saudi bourse said.
Analysts at Global Investment House and Arqaam Capital forecast a net profit for the period of SR29.5 million and SR20 million respectively.
Al-Khodari attributed the profit drop to higher funding and materials costs but also "continued pressure from the labor market reforms".
The Saudi government is looking to boost the number of Saudi nationals in employment through methods such as introducing a quota system for the percentage of Saudis a company must employ and cracking down on illegal foreign workers.
The cost of these reforms have impacted the firm in recent quarters as well — its fourth-quarter net profit was down 50 percent on the corresponding period of 2011.
Al-Khodari’s Q2 profit dips 43%
