Riyadh – Mubasher: Red Sea International Co. on Wednesday reported losses for the second quarter and first half of 2018 due to lower revenues.

The company suffered SAR 9.8 million ($2.61 million) in losses between April and June, up 75% from SAR 5.6 million ($1.49 million) in the same period of 2017.

Quarter-on-quarter, Red Sea International’s losses decreased 36.36% from SAR 15.4 million, according to a filing to the Saudi Stock Exchange (Tadawul).

Gross profit amounted to SAR 22.9 million in Q2-18, down 22.37% year-on-year from SAR 29.5 million, while operating losses increased 3.03% to SAR 3.4 million from SAR 3.3 million in Q2-17.

Losses were mainly due to a decrease in profit margin to 10.5%, a 20.2% drop in leasing revenues, 16.9% lower building revenues.

Despite these declines, the Saudi firm was able to reduce its marketing expenses by 22.5%, general and administrative expenses by 12.8%, it said.

As for the six-month period ended 30 June 2018, Red Sea International incurred SAR 25.2 million in losses versus SAR 3 million in profits.

Sales revenues amounted to SAR 348.9 million in H1-18, down 18.1% year-on-year from SAR 426.1 million.

Losses attributed to shareholders stood at SAR 26.1 million in H1-18 versus SAR 3.2 million in income in the corresponding period of 2017.

Red Sea International’s stock edged up 0.12% to close Wednesday at SAR 17.12.