Saudi's Dar Al Arkan says Q4 profit down 12%

Saudi Arabian real estate company Dar Al Arkan said on Wednesday its fourth quarter net profit fell 12.3 percent on the year due to lower land and residential sales. The kingdom's largest listed developer said its profit for the final three months of 2011 was SR289.6m ($77.22m), compared with SR330.4m in the same period in 2010. The result beat analyst expectations, with Global Investment House forecasting it would earn SR264m and SICO Bahrain pencilling in SR277m for the fourth quarter. In a statement posted on the website of the Saudi bourse, Dar Al Arkan said the fall in revenue from the last quarter of 2011 was due to "lower land sales as the company sought to enhance gross margins and lower residential sales due to lower available completed units." The company's net profit rose by 27.3 percent from its third quarter net earnings, the company said, attributing the rise to higher land demand. Earnings per share over the year were 1.01 riyals, compared to 1.35 riyals in 2010.