Riyadh – Mubasher: Abdullah A. M. Al-Khodari Sons Co. on Sunday disclosed its results for the first three months of 2018, which showed a decline in losses and revneues.

Between January and March, Al-Khodari logged SAR 12.746 million ($3.47 million) in losses, registering a decline of 28.26% from SAR 17.767 million ($4.84 million) in the same period of 2017.

Quarter-on-quarter, losses dropped 64.37% from SAR 35.772 million, Al Khodari said in a filing to the Saudi Stock Exchange (Tadawul).

Gross losses amounted to SAR 4.343 million in Q1-18, down 61.9% year-on-year from SAR 11.42 million, whereas operating profits amounted to around SAR 3 million, an increase of 88.62% from SAR 1.594 million in Q1-17, the data showed.

Losses per share (LPS) amounted to SAR 0.23 in Q1-18 versus and LPS of SAR 0.32 in the same period last year.

Al Khodari attributed the decline in losses to a 68% drop in direct costs, lower gross loss by 62%, and a 38% decrease in selling and marketing expenses.

The company also registered a 27% decline in general and administrative expenses during the first three months of the year on the back of reduced manpower costs and resource optimisation, which the company said contributed to the decline in losses.

Al Khodari’s financial charges also fell 20%, although that was counteracted by a 68% drop in revenues to SAR 61.5 million in Q1-18 from SAR 193.9 million in the year-ago period, according to the statement.

The Saudi investment firm attributed the retreating revenues to a “decline in new project awards, significant liquidity challenges facing the contracting industry due to delay in payments, reflected in slower progress on ongoing construction projects.”

Al Khodari’s other income also decreased 37% to SAR 8.7 million on the back of lower refund receipts from the government compensation for the increased 2,400-expat levy during Q1-18, the statement showed.

The company also logged an increase in Zakat expenses by SAR 250,000 during the quarter.

Earlier this month, Al Khodari reported a 15%-drop in losses for the full-year 2017 to SAR 101.445 million ($27.05 million) from SAR 119.341 million ($31.82 million) in 2016.