Wealth Management by

Delayed projects ease slightly for Saudi builder Khodari

January 26, 2017 11:43 am


* Total value of delayed projects as of December 31: SAR312.7 million

* Small improvement from September 30: SAR362.2m

* Delays in payments, visa issuance partly to blame

Saudi Arabian construction firm Abdullah Abdul Mohsin Al Khodari and Sons said on Thursday that the total value of its delayed work as of Dec. 31 last year was 312.7 million riyals ($83.4 million), a slight improvement from the previous quarter.

As builders in the kingdom rely on the government for most of their contracts they’ve suffered as the pace of construction has sagged in the past two years, partly as a result of lower oil prices squeezing state revenues.

Khodari, which earlier this month reported a widening fourth-quarter net loss, previously said that the value of projects delayed as of Sept. 30 was 362.2 million riyals.

It gave a variety of reasons for the delay, including excessive time taken to issue visas or insufficient numbers of visas issued, delays in the appointment of consultants or the reviewing and processing of invoices.

Delays in the payment of approved invoices or design changes and the halting of work because of lack of money were also to blame, it said.

In Thursday’s statement, the builder estimated the total value of its backlog of uncompleted work as of Dec. 31 at 2.85 billion riyals. That is down from the 3.01 billion riyals estimate it gave for the previous quarter.

The builder’s total contract value was 7.85 billion riyals, it said. That compares to 7.78 billion riyals estimated for the previous quarter.

Tags:

By Reuters
A division of Thomson Reuters, Reuters is an international news agency headquartered in London, England, and provides up-to-the-minute news and views on global and regional events.



AMEinfo EXPERTS