Kingdom Holding’s Q4 Net Income Increases by 10%
Kingdom Holding Company (KHC), chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, announced the Company’s financial results of operations for the fourth quarter and for the twelve months ended December 31, 2013.
The Company reported the gross operating profit for the quarter ended December 31, 2013 amounted to SR 424.1 million compared to the same quarter in 2012 of SR 371.4 million, representing an increase of 14.2%. The fourth quarter results of SR 231.2 million as compared to the net income of SR 209.6 million in the previous quarter, representing an increase of 10.3%. The consolidated net income for twelve months ended December 31, 2013 SR 742.5 million compared to the net income of SR 707.1 million for the same period in 2012, representing an increase of 5.0%.
With respect to KHC’s listed portfolio companies in 2013 they increased in value by over $1 billion (SR 4 billion).
The overall recovery in the global economy was reflected in the continued improvement in the performance of KHC’s unlisted portfolio companies which include Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Mövenpick Hotels and Resorts AG, NAS, real estate projects that include the Jeddah project that encompasses the highest tower in the world, and Kingdom Riyadh project. In addition, KADCO Egypt, and hotel real estate investments such as The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel, Paris, in addition to Kingdom Schools and Medical Services Projects Company.
In 2011, KHC and Prince Alwaleed invested $300 million in Twitter (before it went public) which increased to approximately $1.2 billion (SR 4.5 billion) since Twitter’s IPO in November 2013 and as of closing on Tuesday December 31st 2013.
In 2013, KHC had led a consortium of investors advised by QInvest LLC, Qatar’s leading investment bank, for the acquisition of a strategic stake in Jingdong Inc (JD) (previously known as 360 Buy) the largest B2C direct sales e-commerce company in China for the value of SR1.5 Billion. The investment by KHC in this deal was approximately SR470 Million. JD is expected to go public during the second half of 2014.
Moreover, KHC’s domestic assets have also been a strong contributor to the value appreciation of the unlisted portfolio assets.
Recently, KHC announced the completion of the piling works for the tallest tower in the world (Kingdom Tower) with a height of over 1,000 meters with a total cost of SR4.6 billion. This achievement is considered to be the base of works over ground. The tallest tower is part of Jeddah Economic Company’s (JEC) new urban development of more than 5.3 million sqm of land in the north of Jeddah overlooking the Red Sea and Obhur Creek.
Furthermore, KHC announced the progress of the infrastructure works of the Kingdom Riyadh project located east of the Saudi Arabian capital. The project is being developed by Kingdom Real Estate Development Company (KRED), and the first phase of the 4.9 million m² is expected to be complete in 4 months. In this regard, 75% of the excavation, cut and fill and drainage works by the main roads have been completed.
Moreover, KRED has signed an agreement with Colliers International to do the feasibility study based on the market needs in terms of residential, office and commercial lands.
Founded in 1980, KHC is a publicly traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. KHC is one of the world’s most successful and diversified business organizations, highly respected in the field of investments and recognized as an elite player in the Arabian Gulf region, and internationally. The Company is recognized as one of the largest foreign investors in the United States. KHC’s portfolio has its major interests in investment categories ranging from luxury hotels management hotel companies (Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Mövenpick Hotels and Resorts AG) and real estate (Kingdom Tower and project in Jeddah and Kingdom Riyadh project) to hotel real estate investments such as The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel, Paris. KHC also has investments in Media and Publishing (News Corporation, Time Warner, Saudi Research and Marketing Group and Rotana Group), as well as in Entertainment (Euro Disney S.C.A). In addition, Finance and Investment services (Citigroup), Social Media and Technology (Twitter, AOL, Apple and Motorola), as well as Consumer and retail, petrochemicals (Saks Incorporated and Jingdong). Moreover, the Company has investments in Education (Kingdom Schools), Health Care (Medical Services Projects Company), Aviation (NAS Saudi Arabia) and Agriculture (Kingdom Agricultural Development Company - KADCO Egypt).