Saudi Arabian contractor, Abdullah A M Al-Khodari Sons Co, announced it will auction off units from its plant and equipment (P&E) fleets this November.Â
The auction is part of the company’s plans to upgrade its P&E fleets.Â
READ:Â Saudi-listed Al-Khodari reports 88% drop in Q3 contract awards
An agreement was inked between Al-Khodari and Abdullah Fouad Holding Company’s auction division.Â
Surplus equipment owned by Al-Khodari will be sold at the auction, due to be held between 14 and 16 November, 2017, at the contractor’s yard in Dammam.Â
In a missive issued to the Saudi bourse, Al-Khodari revealed the auction was expected to “have a positive impact on Q4 2017 financials”.
READ:Â Al Khodari wins $18.4m maintenance contract
Earlier this month, Al-Khodari reported an 88% decline in contract awards during Q3 2017.Â
The listed contractor was awarded contracts worth $2.4m (SAR9.1m) during the third quarter of this year, a reduction against Q3 2016’s $21m (SAR78.4m).Â
Al-Khodari’s backlog was valued at $693.2m (SAR2.6bn) at the end of Q3 2017, a decline compared to its third-quarter backlog value of $800m (SAR3bn) last year.Â
Q3 2017 revenues amounted to $29.8m (SAR111.8m), 41% lower than Q3 2016’s revenues, worth $50.6m (SAR190m).Â
Al-Khodari said the decline in its revenues was caused due to slow progress on project works, in addition to the “decline in new project awards, significant liquidity challenges facing the contracting industry due to delay in payments, reprioritising of projects by the government, and [an] extended slowdown in the construction sector”.
A P&E auction conducted by Al-Khodari in April 2016 resulted in gross profit of $4.02m (SAR15.08m) for the firm.Â
The gross sales value of Al-Khodari’s auctioned equipment was $10.2m (SAR38.5m).