Red Sea Housing Services announces interim financial results for nine months period ending 30/09/2012

"The strong financial results for the first three quarters of 2012 show that our growth strategy is firmly on track," said Mr. Mohammed Mallawi, the Investor Relations Manager. "We are investing a total of SR2bn to implement the strategy, which is focused on expansion of our current activities, entering into new geographies, entering the affordable housing sector to serve the Kingdom of Saudi Arabia and other countries around the world; and investing in the building and construction materials sector."

Continuing the announcement of the financial results, the Company reported a significant increase in Gross Profit in the third quarter by 158.13% compared to same period of last year, reaching SR62.13m. Operating Income for the third quarter is SR28.68m compared to SR12.44m for the same quarter of last year, an increase of 130.48%. While Net Income for the nine months period totaled SR87.55m compared to SR66.37m for the same period of last year, an increase of 31.93%.

Earnings per share for the nine months period is SR2.19 compared to SR1.66 for the same period of last year.

Looking at results for the nine months period, Gross Profit is SR159.96m compared to SR113.12m for the same period of last year, an increase of 41.41%. While Operating Income for the nine months is SR96.88m compared to SR73.27m for the same period of last year, an increase of 32.23%.

The substantial increase in Net Profits is attributed mainly to the noticeable increase in Revenues from rental services, in addition to the improvement of Gross Margin Percentage to 24.16% in the first nine months, compared to 19.40% for the same period of last year.

Red Sea Housing Services Company, which manufactures and sells pre-manufactured housing, was established as a publically traded company in September 25, 2006 with a core business of providing housing solutions in areas with oil, gas, and mining excavation activities. The Company has three factories that are located in Jubail, Saudi Arabia, Jebel Ali in Dubai and Accra in Ghana.

In addition to its activities in Saudi Arabia, Dubai, Ghana and Libya, the company also has subsidiaries in Algeria, Qatar, Nigeria and Papua New Guinea. To date, Red Sea Housing Services Company has executed projects in 62 counties around the world.