Land sales, leases boost income
Firm restructures debt
Emaar EC, the master developer of King Abdullah Economic City, trimmed net losses by more than half in the first quarter of 2025 as revenues almost tripled.
Net loss narrowed to SAR123 million ($32.8 million) in the quarter ended March 31, 2025, from SAR352 million a year earlier, the developer said in a statement published on the Saudi stock exchange on Thursday. Emaar EC is 25 per cent owned by the Public Investment Fund (PIF).
Operational expenses fell by SAR20 million during the quarter due to lower professional fees related to capital optimisation plan initiatives. A decrease in marketing expenses and employee costs also helped.
Revenue rose 172 percent to SAR204 million in the first quarter from SAR75 million a year ago, due to increased sales of residential lands and units.
Operational revenue rose mainly driven by lease contracts signed in the industrial valley segment, and higher student intake in one of the subsidiaries operating in the education sector.
As of March 21, 2025, the company’s current liabilities exceeded its current assets by nearly SAR8 billion.
In September 2024, Emaar EC initiated a SAR8.7 billion capital optimisation plan that will allow the company to restructure its SAR3.8 billion in bank facilities.
It will also convert SAR4 billion debt owed to the PIF into equity and receive a new convertible facility of up to SAR1 billion from the sovereign wealth fund.
Emaar EC listed on the Saudi Stock Exchange in October 2006. Its share price was SAR13.70 on Thursday, down by nearly 28 percent year to date.
