Red Sea International Reports SAR 2.54M Net Profit in Three Months 2026
RED SEA 4230.SA | 0.00 |
On 2026-05-11 16:00:05 (Saudi Time), Red Sea International Co. announced its Interim financial results for the three months ended on March 31, 2026.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 631,223 | 700,663 | -9.91 | 909,102 | -30.566 |
| Gross Profit (Loss) | 76,223 | 92,491 | -17.588 | 25,509 | 198.808 |
| Operational Profit (Loss) | 14,455 | 19,115 | -24.378 | -42,577 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 2,543 | -11,227 | - | -40,865 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 5,027 | -11,227 | - | -51,611 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 435,038 | -3,956 | - |
| Profit (Loss) per Share | 0.05 | -0.37 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -35,857 | -7.4 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
Year-on-Year Performance Drivers
Sales declined 9.91% YoY to SAR 631.22 million primarily due to a relatively lower pace in execution of projects during the quarter, with general construction revenue decreasing 16% despite rental and facilities management revenue increasing 86%. The company turned from a net loss of SAR 11.23 million to a net profit of SAR 2.54 million, driven by significant reductions in SG&A costs through cost-cutting measures, lower provisions for expected credit losses due to improved collections, and reduced finance costs and zakat charges.
Quarter-on-Quarter Performance Drivers
QoQ revenue declined 30.566% to SAR 631.22 million due to a relatively lower pace in project execution during the quarter. Net profit improved from a loss of SAR 40.87 million to a profit of SAR 2.54 million, primarily driven by the absence of SAR 76 million impairment charges on property, plant, equipment, investment property, and inventories that were recorded in Q4 2025. The turnaround to profitability occurred despite lower revenue and reduced gross profit margins.
Other Items
The auditors issued an unmodified conclusion with no adverse comments or disclaimers. Accumulated losses stand at SAR 35,857(currency not specified in original) thousand, representing 7.4% of capital. Total shareholders equity improved significantly from negative SAR 3,956(currency not specified in original) thousand in the prior year to positive SAR 435,038(currency not specified in original) thousand in the current period. Earnings per share turned positive at SAR 0.05(currency not specified in original) compared to a loss of SAR 0.37(currency not specified in original) per share in the previous year. The company highlighted that operating profit before non-cash PPA amortization of SAR 24.4(currency not specified in original) million amounts to SAR 38(currency not specified in original) million, with these charges expected to remain consistent through FY26 before declining significantly from Q1 FY27.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=95256&anCat=1&cs=4230&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.