Jabal Omar Development Company announces its Annual Financial Results ended on 15/7/1438 AH
The 5-star “Jabal Omar Jumeirah Makkah Hotel” has achieved remarkable success in Makkah. Under the agreement, the “Jumeirah Group” will assume its management in favor of Jabal Omar Development Company (JODC); and the reason behind the rise in its net profit during the six and a half month period of the current year compared to the six-month period of the previous year is the rise in the residential units’ sale revenues and the hotel revenues from the project.
For a better view of the results, some of the previous year amounts have been reclassified to conform to the presentation used in the current year; as indicated in the Clarification No. 29 in the financial statements.
With reference to the company’s announcement published on the Saudi Stock Exchange’s website (Tadawul) on 27/6/1438 – 26/3/2017, regarding the approval of the 8th Extraordinary General Assembly to the amendment of the Company’s Statute, which stated the conversion of the company’s fiscal year from the Hijri calendar year that ends on (30/12) to the Gregorian calendar year that ends on (31/12), and that is by making an integrated plan to implement this transition; as the company will issue financial statements for the short Hijri fiscal year 1438 AH, starting from 1/1/1438, and ending on 15/7/1438; accordingly, the company will perform a comparison between the financial statements for the current year ended on 15/7/1438 (i.e. six and a half month period) and the financial statements for the previous period ended on 29/6/1437 (six-month period):
- The revenues amounted to SAR 544,997,308 for the six and a half month period of the current year, compared to SAR 205,309,307 for the equivalent six-month period of the previous year; i.e. an increase of 165%.
- The total shareholders’ equity (after excluding the minority interests) amounted to SAR 10,185,275,392 for six and a half month period of the current year, compared to SAR 9,322,766,618 for the equivalent six-month period of the previous year; i.e. an increase of 9.25%.
- The expense to revenue ratio declined by 13%; due to the increased surveillance by the management during this period. Furthermore, the company has successfully realized some achievements that will contribute in achieving profits and growth for the company in future periods, which can be summed up in the following points:
- Signing the (Real Estate Purchase and Sale Agreement with an Option Clause) with Alinma Fund for the sale of 3 hotels and 2 commercial real estates, amounting to 6 billion Saudi Riyals; and we expect that the sale will be completed by August 2017, which will give profitability for the company.
- Signing a memorandum of understanding with Albilad Capital for the purpose of selling 93 residential units in the second phase of Jabal Omar project to a real estate fund, amounting to 1.2 billion Saudi Riyals; and we expect that the sale will be completed by October 2017.
- Successful completion of the first phase of Jabal Omar project, which includes five hotels and three commercial markets.
- Jabal Omar Hilton and the Main Conference Hall in Makkah were opened and operated on
3/7/ 1438 AH, corresponding to 31/3/2017.