Red Sea Housing Services Company has announced its headline figures for 4Q2015. Net income came in at SAR27.1 million, down from SAR29.3 million in 4Q2014, but up from SAR1.9 million in 3Q2015. Operating income was SAR33.6 million, versus SAR40 million in 4Q2014 and SAR6.6 million in 3Q2015. Gross profit was SAR80.1 million, roughly unchanged Y-o-Y and up 73% Q-o-Q. This brings 2015 net income to SAR76.1 million (-51% Y-o-Y), operating profit SAR96.4 million (-44% Y-o-Y), and gross profit SAR249.2 million (-15% Y-o-Y). Management attributed the drop in the quarterly net profit of 7.5% to increased selling and marketing expenses. Moreover, the drop in profitability in 2015 was attributed to: i) a 7% drop in revenue, which came on the back of a 25% drop in revenue from the sale of buildings, which was partially compensated for by a 115% jump in revenue from the paint division and a 22% rise in rental revenue; ii) margin pressure, with gross profit margin averaging 24.3%, down from 26.7% in 2014; iii) higher financing costs; iv) higher provisions for doubtful debt; and v) lower other income. (Tadawul)