Kingdom Holding Company (KHC) chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, announced the Company`s financial results of operations for the year ended December 31, 2007 following their approval by the Board of Directors.
The consolidated results for the full year increased by 25% when compared to the pro forma results for the previous year, while the results for the fourth quarter of 2007 exceeded the third quarter of 2007 by 13%.
Consolidated revenues for the three months and the year ended December 31, 2007 aggregated SR 1.8 billion and SR 7.3 billion, respectively. Net Income after Minority Interests of Consolidated Subsidiaries for the three months ended December 31, 2007 equaled SR 255.7 million. Net Income for the full year 2007 totaled SR 1.2 billion, which exceeded the pro forma results for the previous full year ended December 31, 2006 by 25%. Earnings per share for the three months and year ended December 31, 2007, based on the 6.3 billion shares outstanding for the entire period equaled SR .04 per share and SR .19 respectively.
The Company continued to realize excellent gains from their hotel operations through their majority-owned subsidiaries which include Kingdom Hotel Investments, and its hotel management subsidiary, Fairmont Raffles Hotels. During the fourth quarter of 2007, Fairmont was successful in selling certain of its non-strategic hotel assets and accordingly reduced its debt and generated cash which was distributed to Kingdom Holding Company and the minority shareholder of Fairmont. The Company`s other 45% owned management company, Four Seasons, realized increased profits resulting from management fees due to improved occupancy and revenue per occupied room.
With respect to its operations in Saudi Arabia, the Company is continuing to pursue its development plans for their landmark project in Jeddah and its real estate development north of Riyadh. The Jeddah project has an area of 5.3 million square meters and is located in the city`s northern area on the Red Sea coastline, which is a strategic area for the development of this project. The investment project will comprise of a colossal sky scraper with a surrounding area for other facilities (residential, commercial, construction of a five star hotel and offices). The project will also connect the Red Sea coastline of the area to Sharm Obhur. During the three months ended December 31, 2007, the Company acquired an additional area of approximately 1.2 million square meters which is adjacent to the existing land under development.
The other real estate project in Riyadh consists of 16.7 million square meters. It is located on the Dammam highway and 15 minutes drive from the center of the City. Among other facilities, the project will include a leisure resort and facilities managed by Four Seasons Hotels and Resorts with an area of 1 million square meters.
Recently, the Company initiated discussions with several of its banks, both domestically and internationally, to provide various additional financing to the Company. Notwithstanding the current financial crisis affecting the US financial industry sector, and following the input of its financial advisers and banks, the Chairman is highly confident that the Company will secure all the financing it needs to support its growth objectives.
The Chairman believes that the Company`s first year results of operations set the standard for the delivery of solid financial results which are in line with the expectations and sustained growth for the future. The Prince added, “Kingdom Holding Company is poised to enhance the economic development of Saudi Arabia and increase shareholder value, with the help of God Almighty.”
KHC Board Members chaired by HRH are Eng. Talal Al Maiman, Executive Director for Development and Domestic Investments, Mr. P.J Shoucair, Executive Director for International Investments, Eng. Ahmed Halawani, Executive Director for Private Equity and Mr. Shadi Sanbar is the CFO of KHC. The Independent Board Members of KHC are Mr. Saleh Al Sagri, Dr. Khaled Al-Saheem, Eng. Ammar Al-Khudairi, Dr. Ibrahim Al-Madhoun and Mr. Taher Aqil.
KHC is one of the worlds most successful and diversified business organizations, highly respected in the field of investment and recognized as an elite player in the Arabian Gulf region and internationally. KHC was founded in 1980 where initially the Company focused on construction activities, housing development and educational projects. Today, KHC`s portfolio has its main interest in hotels and hotel management, financial services, real estate, technology and media. KHC also has stakes in other Saudi publicly traded companies in the various sectors; banking through Samba, food via Savola, industrial through Tasnee and media via SRMG. Other KHC investments include Telecommunications, retail, tourism, consumer and healthcare. Moreover, the company`s portfolio contains many renowned brands and blue-chip companies including Citigroup, Fairmont Raffles Hotels, Four Seasons Hotels, Mövenpick Hotels & Resorts, News Corporation, Time Warner, Songbird Estates (Canary Wharf, London), Apple, PepsiCo, Procter & Gamble, Hewlett Packard, Motorola, Walt Disney Co and Eastman Kodak. In addition to its public company activities, KHC is also extremely active in the area of private equity in Saudi Arabia and developing markets within the Middle East, Africa and Asia.