Red Sea Housing net profit rises 23.13% to SR40.78m in Q2

Red Sea Housing Services Co. (RSH) has posted outstanding performance for the first half of 2014, revealing operating income of SR41.59 million, a growth of 17.69 percent compared to the same period of 2013.
The company’s upward trajectory also shows a 23.13 percent and 22.64 percent increase for second quarter in net profit and gross profit, respectively. The second quarter net profit stood at SR40.78 million, while the gross profit jumped to SR67.5 million.
During the first six months of 2014, RSH’s net profit surged to SR84.3 million, reflecting an increase of 30.01 percent compared to the SR64.84 million posted during the first six months of 2013. Gross profit also grew by 28.7 percent to SR139.91 million, while the operating income reached SR87.68 million, an increase by 26.47 percent.
Mohammed Othman Mallawi, investor relations manager, RSH, explained that the increased figures can be attributed primarily to the improved sales of housing units and the noticeable increase in rental revenues, leading to a higher net profit for the first half of this year.
“Another net profit growth driver was the 26.07 percent increase in gross profit margin during the first six months of the year as a result of higher revenues and lower camp’s installation costs,” Mallawi said.
“The financial results for the second quarter, meanwhile, showed a remarkable improvement compared to the same period of 2013. The recent accomplishments demonstrate our intensified efforts and strong commitment to further strengthen RSH’s robust presence in major markets and make a footprint in new and promising international markets around the world. All our initiatives are evidently in line with the company’s 2020 growth strategy,” he added.
“The company’s recent development project worth SR67 million in Papua New Guinea is also expected to further bolster our financial performance. The project, which covers over 70,000 square meters, involves the construction of 150 housing units in Bomana Area for the local police force. The financial impact of this project shall reflect on the financial results for Q3, 2014. The positive developments that we witnessed during the second quarter and first half of 2014 were the result of our continuing commitment to offer high-quality residential solutions to our customers across the globe,” Mallawi added.
With presence in 60-plus countries, Red Sea Housing Services Company is described as the world’s leading designer, manufacturer, financier and manager of large-scale accommodation solutions, with specialist expertise in supplying building materials, affordable housing to economically-developing countries and fast, turnkey satellite living localities to the construction, energy and Government sectors globally.