Saudi contracting firm Abdullah AM Al Khodari Sons Company said on Saturday that net profit for the final quarter of 2011 fell 37 percent, Arabian Business reported. The construction company said net income was SR54.45m ($14.5m) compared to SR86.74m for the same quarter in 2010. The figure represented an increase of 150 percent over the net profit posted in the previous quarter, the company said in a statement to the Saudi bourse. Net profit for the whole of 2011 was SR158.12m compared to SR217.91m for 2010, a decrease of 27 percent. Al Khodari said the fall in Q4 net profit was due to a decrease in revenues as a result of “management's decision to retain plant and machinery to be utilised in recently awarded projects”. The company also experienced direct manpower cost increases while resorting to local hire due to delays experienced in block visa approvals, it added. It also said delays to assigning consultants for a number of projects led to a cost overrun of site overheads prior to construction starts. Last August, Al Khodari said it had been awarded a SR120.7m contract by the Ministry of Interior for the construction of the second phase of Border Guard Airport in Umm Almelh in the kingdom's Empty Quarter. Al Khodari said the fall in Q4 net profit was due to a decrease in revenues as a result of “management's decision to retain plant and machinery to be utilised in recently awarded projects”. The company also experienced direct manpower cost increases while resorting to local hire due to delays experienced in block visa approvals, it added. It also said delays to assigning consultants for a number of projects led to a cost overrun of site overheads prior to construction starts. Last August, Al Khodari said it had been awarded a SR120.7m contract by the Ministry of Interior for the construction of the second phase of Border Guard Airport in Umm Almelh in the Kingdom's Empty Quarter.
