Red Sea International (Red Sea) has reported its 2Q17 financial headline figures. Revenue fell 25.6% Y-o-Y to SAR198.8mn. Gross profit came in at SAR29.5mn (-57.9% Y-o-Y,-34.9% Q-o-Q), while operating loss was SAR2.1mn (2Q16: SAR26.8mn, 1Q17: SAR15.5mn. both in operating profits), and net loss was at SAR5.6mn (2Q16: SAR31.2mn, 1Q17: SAR8.7mn, both in net profits). Revenue in 1H17 fell 21.0% Y-o-Y to SAR426.1mn. Gross profit totaled SAR74.8 (-48.4% Y-o-Y), while operating profit totaled SAR13.5mn (-81.9% Y-o-Y), and net profit SAR3.1mn (-95.1% Y-o-Y). Management has attributed the quarter’s net loss to shrinking gross profit margins, (2Q17: 14.8%, 2Q16: 26.2%) on the back of lower rental operations (-23.6% Y-o-Y) and buildings revenue (-26.2% Y-o-Y). This was only partially compensated for by the booking of FX gains and lower depreciation expenses. On a separate note, Red Sea has also announced that its subsidiary, Red Sea Housing Services, has inked a 12-month agreement with AECON to co-develop residential projects in Saudi Arabia. The company noted that the agreement has no impact on its financials for the time being.