Riyadh – Mubasher: Abdullah Abdul Mohsen Al Khodari’s board on Wednesday put forth a recommendation to the company’s ordinary general meeting (OGM) to use the statutory reserves to cover a portion of the firm’s accumulated losses.
The board recommended using all of Al Khodari’s statutory reserves amounting to SAR 70.99 million to cover accumulated losses which have reached SAR 272.99 million and make up around 48.9% of capital, it said in a filing to the Saudi Stock Exchange (Tadawul).
After using the reserves, Al Khodari’s losses would decline to SAR 202.01 million, representing 36.2% of capital.
In November, Al Khodari posted losses for both the third quarter and first nine months of 2018.
In Q3-18, the firm’s losses surged 241% year-on-year to SAR 25.96 million ($6.92 million) from 7.62 million ($2.03 million), while the nine-month period ended 30 September, Al Khodari logged SAR 24.054 million in net losses after zakat and taxes, registering a decline of 35.33% from SAR 37.199 million in the same period of 2017.
The Saudi firm had attributed the increased losses to fewer project awards and challenges facing the Saudi contracting sector due to low liquidity, prompting slower progress across the company’s projects.
Al Khodari’s stock closed Wednesday in the green, having added 1.6% to SAR 6.98.
