JEDDAH – Red Sea Housing Services has announced its interim financial results for the period ending Sept. 30, 2012, marking an increase of 201 percent in the company's net income for the fourth quarter of 2012, reaching SR 32.87 million compared to SR 10.89 million in the corresponding period of 2011. According to company officials, the major rise in net income compared to 2011 is mainly attributed to the strong increase in revenues, which were up by 5.42 percent, and the huge 183.91 percent growth in gross profit, and 205.99 percent in operating profit, which was a result of the noticeable increase in rental revenues and reduction of installation cost in camps. During the 12 months of 2012, Red Sea Housing Services recorded a net income of SR120.42 million, which is the highest in the past 3 years, reflecting a growth rate of 54.60 percent from SR77.89 million during the same period in 2011 due to the significant increase in Revenues reaching to SR864.84, which is the 2nd highest revenue achieved in the company's history. Earnings per share for the twelve-month period reached SR3.01 compared to SR1.94 for the corresponding period in 2011. Another highlight in the report is the 57.23 percent increase in operating income for the 12 months of 2012, growing from SR85.31 million during the same period in 2011 to SR134.14 million. While it recorded an increase of 205.99 percent in operating profit to SR37.27 million during the fourth quarter of 2012 compared to SR12.18 million same period of 2011. The strong results have positively contributed to the company's gross profit, which grew by 49.38 percent during last year of 2012 to hit SR221.37 million over SR148.19 million during the same period in 2011. Gross profit in the fourth quarter of 2012 reached SR61.41 million compared to SR21.63 million in 2011, an increase of 183.91 percent. The Board of Directors of Red Sea Housing Services Company recommended the distribution of SR60 million as cash dividends for 2012, or SR1.5 per share, which represents 15 percent of the company's share capital. “The decision of distributing dividends comes in line with the efforts of the Board of Directors in order to enhance shareholder returns. This decision was originated subsequent to the strong financial results of Year 2012, which will be implemented immediately after completing and the necessary procedures and acquiring approvals from relevant official bodies. Dividends distribution will be given to registered shareholders during the upcoming general assembly, which will be announced in due course,” said Mohammed Othman Mallawi, Investor Relations Manager, Red Sea Housing Services. “The year 2012 has seen remarkable financial results, which reflect our commitment to the growth strategy of Red Sea Housing Services to reinforce our presence across local markets and access new promising markets, which will enable us to help satisfy the housing needs of the country by leveraging the huge growth potential and strong investment prospects. We will remain steadfast in our efforts to expand our activities across local, regional and international housing markets. We are expecting to witness a qualitative leap and a recognized advantage of the various industrial projects that will commence during the current year, especially in the Western region due to the government support for all industries especially the oil sector, the mining and industrial sectors as well,” Mallawi added. — SG.
