Saudi Arabia's Etihad Etisalat (Mobily), which had slashed 27 months of previously reported earnings by nearly $1 billion, swung to a profit in the fourth quarter and said on Thursday some creditors had agreed to waive covenant breaches.

Mobily, an affiliate of the UAE's Etisalat , made a net profit of SR11 million ($2.93 million) in the three months to December 31. This compares with a loss of SR2.11 billion in the same period a year earlier, according to a bourse statement.

An analyst at Osool & Bakheet Investment Co forecast Mobily, which competes with Saudi Telecom Co and Zain Saudi , would make a quarterly profit of SR125.1 million.

The company said it signed an agreement with creditors on December 29 to waive covenant breaches in relation to several debt facilities worth SR12.1 billion. It continues to discuss agreeing a similar waiver with other creditors, the firm added.  - Reuters