Construction firm Red Sea International posts $24.8m nine-month losses after project delays

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RIYADH: Construction firm Red Sea International reported losses of SR93.3 million ($24.8 million) in the first nine months of the year due to project delays, a 4.1 percent fall on losses a year ago, according to a Tadawul filing.

The firm builds affordable houses for clients in the oil and gas, power and mining sectors in more than 65 countries around the world.

It said losses were due to delays to ongoing projects resulting from the pandemic, as it struggled to cut manpower and other costs to cope with these extensions, the company said in an additional statement on Saudi Stock Exchange.

It added these projects were priced without booking reserves for the rise in the price of raw materials and manpower caused by Covid-19.

The business said it has since developed systems “to monitor and control costs related to project pricing and hedge any possible increase in the prices of materials and manpower”.

It added losses fell by 30.3 percent in the third quarter of the year to SR31.2 million.