On 2026-08-02 08:02:52 (Saudi Time), Saudi Darb Investment Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 12.619% YoY from SAR 9.17 (SAR 9,166,192 / 1,000,000 = SAR 9.17 million) to SAR 8.01 million (SAR 8,009,486 / 1,000,000), primarily attributable to a 13% decline in the occupancy rate. Despite the revenue decline, net profit attributable to shareholders rose 9.16% YoY from SAR 2.90 million to SAR 3.16 million, driven by a significantly lower expected credit loss (ECL) provision of SAR 373,572 in the current period compared to SAR 2,071,046 in the prior period, as well as a 36% reduction in professional fees.

Quarter-on-Quarter Performance Drivers

QoQ revenue was essentially flat (+0.303%), as the company reported no material change in sales compared to the previous quarter (SAR 4.01 million vs. SAR 4.00 million, converted from Actual: 4,010,806 ÷ 1,000,000 = SAR 4.01 million; 3,998,680 ÷ 1,000,000 = SAR 4.00 million). Net profit surged 126.491% QoQ (SAR 2.19 million vs. SAR 0.97 million), primarily driven by a reversal of expected credit loss (ECL) provision in the current quarter amounting to 402,636(currency not specified in original), compared to an ECL expense of 776,208(currency not specified in original) recorded in the previous quarter — a swing that significantly reduced operating costs and boosted the bottom line.

Other Items

The external auditor issued an unmodified conclusion on the interim condensed financial statements for the six months ended June 30, 2026. However, the auditor included an Emphasis of Matter paragraph drawing attention to notes (8 and 14), which describes an asset exchange case with Al Satea Modern General Contracting Company. As stated in the auditor's report: "the Company has recognized a provision for the losses arising from the asset exchange contract with Al Satea Modern General Contracting Company amounting to SAR 26,136,823. The Company's management believes that the assets expected to be received in exchange are not significant and are subject to substantial impairment due to their obsolescence. Accordingly, a provision has been recognized at the carrying amount of the performance obligations that the Company is committed to deliver to the other party. In addition, the previously issued judgment obligating Darb Saudi Investment Company to fulfill the terms of the contract with Al Satea Modern General Contracting Company has been upheld." The auditor confirmed that its conclusion is not modified in respect of this matter. Total shareholders' equity (after deducting minority equity) stood at SAR 232,994,859 as of the current period, up 3.117% from SAR 225,951,015 in the same period of the previous year. Basic and diluted earnings per share attributable to the Company's shareholders for the current period were SAR 0.0145, compared to SAR 0.0133 for the corresponding period of the previous year, based on a weighted average number of shares outstanding of 218,295,000 for both periods.

Original announcement:

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