Red Sea Housing net profit up 75pc
Jeddah, November 3, 2013
Red Sea Housing Services Company (RSH), a provider of quality industrial housing solutions, has reported a 25 per cent jump in its net profit for the first nine months which rose to SR109.26 million ($29.1 million) compared to SR87.56 million last year.
The net profit for the third quarter surged by 75.71 per cent to hit SR44.42 million, which is the highest profit reported in the past 17 quarters, said the company in its statement.
One of the leading providers of high-profile modular housing solutions for companies involved in oil, gas, and mining excavation activities, RSH operates three factories located in Jubail (Saudi Arabia) Jebel Ali (Dubai) and Accra (Ghana).
Mohammed Othman Mallawi, the RSH investor relations manager, said the current increase in profits was mainly due to the company’s growing revenues from the sale of housing units and its ability to maintain low installation costs in the different projects.
"The success in the company’s business and activities was achieved through the methodical implementation of the adopted strategy, which aims at penetrating new markets such as Australia and the Americas, in addition to expanding in existing markets," stated Mallawi.
According to him, the healthy performance of the oil & gas and mining sectors in the region continues to accelerate the demand for RSH products.
"The SR2 billion capital expenditures outlined in the strategy will aim at investing in building materials and equipments sector, and entering the affordable housing sector to serve the Kingdom of Saudi Arabia and other countries around the world," he added.
The Saudi company's shares witnessed trading volume that exceeded SR76 million in the session following the announcement of the third quarter results. The share price soared by 8 per cent to close at SR50.75, which is the highest close in four years.
Red Sea Housing Services boasts of an integrated portfolio of projects in 62 countries besides subsidiaries in Ghana, Algeria, Qatar, Nigeria, Papua New Guinea and Libya.-TradeArabia News Service