Red Sea Housing Services (Red Sea) has reported its headline figures for 2Q16. Net income was SAR31.5mn (+85.3% Y-o-Y, -1.9% Q-o-Q), operating profit was SAR39.1mn (+73.8% Y-o-Y, -0.5% Q-o-Q), while its gross profit was SAR70.2mn (+19.4% Y-o-Y, -6.5% Q-o-Q). This brings 1H16 net income to SAR63.6mn (+35.0% Y-o-Y), operating profit of SAR78.4mn (+35.9% Y-o-Y) and gross profit of SAR145.3mn (+15.3% Y-o-Y). Management attributed the Y-o-Y rise in net income in 2Q16 to the improvement in gross profit margin (2Q16: 26.3%, 2Q15: 24.8%) on higher revenue from the building, rental and paint segments and lower cost of rental. Net income was also helped by lower S,G&A (-14.4% Y-o-Y) on lower provisions for doubtful debts and lower employee costs. (Tadawul)