Jabal Omar Development Company’s net profit increased by 99.5% to 305.46 million riyals in the third quarter of this year after zakat and tax, compared to 153.1 million riyals in the third quarter of 2022.

The company said in a statement to Saudi Tadawul today, Wednesday, that the reason for the increase in net profit in the third quarter of this year is due to several factors, the first of which is the growth in revenues by 7.3% to 234.6 million riyals, compared to 218.6 million riyals in the corresponding quarter of last year due to… Improvement in hotel occupancy rates and average room rates.

It indicated that a profit of 391 million riyals was achieved from the sale of land in the Jabal Omar project during the third quarter of 2023, in addition to a decrease in operating expenses by 73%, which is largely due to the reversal of the provision for credit losses and the decrease in advisory fees related to financial restructuring.

During the first nine months of this year, the company achieved a net profit of 237.5 million riyals, compared to net losses of about 158 million riyals in the parallel period of 2022.

The company said that the reason for achieving net profit in the first nine months of this year is due to the company’s revenues increasing by 65% compared to the same period of the previous year as a result of the strong improvement in hotel occupancy rates and average room rates, in addition to the growth in mall revenues.

The provision for doubtful debts amounting to 42 million riyals was also reversed in the current period due to the improvement in the collection of receivables compared to the same period of the previous year, in addition to achieving a profit of 391 million riyals from the sale of land in the Jabal Omar project during the current period.