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Logo of Naqi Water Co.
Naqi Water Co. achieved a net profit of SAR 3.57 million from transferring the right to rent a land in Riyadh Second Industrial City, the company said in a statement to Tadawul today, May 16.
The company completed the procedures for transferring the rent right related to land plot number 0020M00077, owned by the Saudi Authority for Industrial Cities and Technology Zones (MODON).
The procedures included the transfer of the land and its related assets, with a total value of SAR 10.93 million, inclusive of value-added tax. This resulted in the realization of non-operational profits, the statement said.
The transfer falls outside the company's investment and expansion plans, it added.
The resulting net profit excludes all costs associated with the operation, Naqi Water said, adding that the financial impact will be reflected in the second quarter of 2024.
The decision to sell the rent rights for the land came due to the availability of an alternative opportunity to establish the new factory in Riyadh, at a location with better advantages in terms of space and operational efficiency.
The company will announce further developments regarding the establishment of the new factory in Riyadh later, as circumstances unfold.
In March, Naqi Water signed a contract to waive the right to lease a plot of land, and the properties on it, from MODON. This land was previously intended to be leased to the company for the purpose of establishing a new bottled drinking water factory in Riyadh, Argaam reported.
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