Construction companies listed on the Saudi Stock Exchange (Tadawul), were able to achieve a profit of about 239 million riyals during the first quarter of 2015, equivalent to 1.1% of total market profit, compared to approximately SAR 379 million for the corresponding quarter of 2014, a decrease of approximately 37%, and compared to a realized loss for the quarter of approximately SAR 241 million.
Income Statement Highlights As for the main features of the income statement of the companies listed in this sector during the first quarter of 2015, the sector achieved sales of about 6.021 million riyals during the first quarter, and the cost of these sales amounted to about 4.945 million riyals, which means that the realized income margin is about 1.076 million riyals, meaning that the sector's income margin is 18% of its sales volume.
It also achieved an operating profit of about 381 million riyals, which is equivalent to 6% of its sales volume, and after taking into account expenses, non-operating income, zakat, tax and minority rights provision charged to the quarter, it was able to achieve a net profit of about 240 million riyals, which is equivalent to 4% of its sales volume. Net profit of about 240 million riyals, which is equivalent to 4% of its sales volume. Construction & Construction As for the operating margins of the listed construction and building sector companies for Q1 2015, the sector achieved a gross margin of 18% of sales for the quarter, with pottery having the highest gross margin of 38% while cables achieved the lowest gross margin of 9% of sales for the quarter and a negative gross margin accelerator.
The sector achieved an operating income margin of 6% from the quarter's sales and Pottery achieved the highest operating income margin at 32%, while both Accelerator and Cables achieved negative operating income margin. The sector achieved an operating income margin of 6% from the quarter's sales and Pottery achieved the highest operating income margin at 32%.
The sector as a whole achieved a net income margin of 4% on the quarter's sales with Gypsum achieving the highest net income margin at 27% while Al Muajil, Cables, Arabian Pipes and Musk achieved a negative net income margin. The sector as a whole achieved a net income margin of 4% on the quarter's sales.
Return on Equity In terms of ROE, the sector as a whole achieved a first quarter ROE of 2.2%, with Al Fakhariyah having the highest first quarter ROE of 8.7% while Al Muajil, Al Kabil, Arabian Tubes and Musk had a negative net income margin. The sector as a whole achieved a first quarter ROE of 2.2%.
The book value per share of the construction sector as of the end of March 2015 is 11.32 riyals per share, and the book value of porcelain stock is 35.98 riyals as the highest company, while the book value of the cable stock is 5.57 riyals as the lowest company in the sector and Al Majel has a negative book value at 16.96 riyals. The book value per share of the construction and building sector as of the end of March 2015 is 11.32 riyals per share.
