Emaar Economic City has announced its financial headline figures for 3Q16. The company reported net losses of SAR81mn, compared to a net income of SAR8mn in 3Q15 and a net income of SAR80mn in 2Q16. Operating losses were SAR67mn in 3Q16 (3Q15: SAR9mn in operating income, 2Q16: SAR24mn in operating loss). Gross profit was SAR22mn (-74% Y-o-Y, -78% Q-o-Q). 9M16 net loss was SAR32mn (9M15 net income: SAR144mn); operating loss was SAR157mn (9M15 operating income: SAR168mn) and gross profit of SAR174mn (-55% Y-o-Y). Management cited the following as the reasons behind the weak profitability in 3Q and 9M16: i) sale of residential products with lower profit margin; ii) rise in G&A; iii) increase in depreciation and interest expense; and iv) higher infrastructure cost estimate for residential land. (Tadawul)