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Saudi Arabia-listed developer Makkah Construction & Development Company has announced it won’t be distributing cash dividends to shareholders following a huge net loss last year.
The company, which has built residential and commercial projects around the Makkah Holy Mosque and the biggest shareholder in Jabal Omar Development Company posted a net loss of 59 million riyals ($15.7 million) for 2020.
In a statement to the Saudi Stock Exchange (Tadawul) on Tuesday, the company said its board of directors recommended the non-distribution of payout during a recent meeting.
“The company has not achieved profits this year, due to the repercussions of the coronavirus pandemic,” the company said in a bourse filing to the Saudi Stock Exchange (Tadawul) on Tuesday.
The firm’s revenues for last year dropped by 74 percent year-on-year to 123 million riyals.
Makkah said that the occupancy rates at its hotel property in the Holy city had plunged, owing to the decline in visitor traffic.
“The reason for achieving a net loss is due to the decrease in revenues and occupancy rates of the residential rooms in the Makkah Hotel and Towers, due to the decrease in the number of visitors and pilgrims, as well as the closing of the shops in the mall as a result of the [COVID-19 precautionary measures),” the company said in a separate filing.
Since the lockdown in March last year, Saudi Arabia lifted most of its health restrictions only recently. Last Sunday, indoor dining and entertainment activities were allowed to resume. Cinemas, gyms, sports centres have also been permitted to re-open.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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