Emaar The Economic City recorded losses after Zakat and tax amounted to 282 million riyals in the first quarter of 2020, compared to profits of 7 million riyals in the first quarter of 2019, and against Losses in the previous quarter by 223 million riyals, an increase in the value of losses 26.5%.
According to ArabiaNet, the company's operating losses in the first quarter amounted to 39 million riyals, compared to 160 million riyals in the first quarter of 2019.
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The company said that the losses in the first quarter came despite the fact that sales in the current quarter were higher than in the first quarter of 2019, but the company was unable to record accounting revenue from High-value sale because it contains certain conditions is still in progress.
The reason for this added a decrease in sales and total profits for this quarter compared to the same quarter, in addition to a slowdown in economic activities in general in the real estate sector in addition to the wealth of Corona COVID-19. This unprecedented epidemic also led to a decrease of 89 million riyals on properties available for sale and rent during the current quarter, which affected the gross profit and operating income.
She pointed out that the change in the cost estimates of infrastructure for industrial and residential projects led to positive results during the corresponding quarter, while no significant change was observed in the cost estimates during the current quarter < / p>
Attracted to the increase in financial expenses due to the low capitalization of borrowing costs, mainly due to the slowdown in development activity that is in line with the prevailing macroeconomic conditions and the prevailing COVID 19, and lack of access to New long-term loans.
She said that the gains from the sale of investment properties during the corresponding quarter of 2019 contributed to the final net profits, while no such sale was made during the current quarter. >
