Al Hammadi Company for Development and Investment [4007.SE] reported its preliminary 2Q16 results, showing a net income drop of 43% Y-o-Y to SAR21mn (-3% Q-o-Q), while revenue came in flattish (+1%). The significant drop in earnings was due  to: i) increased expenses and depreciation on the inauguration of Al Hammadi Al Suwaidi Hospital; ii) closure of Olaya hospital on the electrical contact incident on 7 February and for the whole 1st quarter. Gross profit dropped a milder 11%, likely mostly attributable to the depreciation impact, whereas EBIT fell a sharper 31%, likely on the inclusion of higher SG&A from Al Suwaidi inauguration. (Company disclosure)