Ash-Sharqiyah Development Co. reported earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported that net loss was SAR 6,400,661 compared to net profit of SAR 770,112 for the same period ended December 31, 2015. Operating loss was SAR 6,772,828, compared to operating profit of SAR 565,084 for the same period ended December 31, 2015. The reasons for the increase in losses in fourth quarter of 2016 compared to fourth quarter of 2015 is the decline in sales from SAR 5.69 million in fourth quarter of 2015 to SAR 0.780 million in fourth quarter of 2016 because of the decline in purchase orders received from major customer due to incapability of competing with other providers. Plus the increase in operating costs was due to the high exposure of the agricultural crops to damages and the ongoing trespassing activities from cattle owners feeding on the company’s crops which led to the inability to provide fodder for the cows leading the company to buy replacements at higher prices. Plus the warehouse fire announced by the company previously caused high replacement costs. For the year, the company reported that net loss was SAR 15,635,023 or SAR 2.08 per share compared to net profit of SAR 8,945,157 or SAR 1.39 per share for the same period ended December 31, 2015. Operating loss was SAR 12,987,518 compared to operating profit of SAR 1,628,381 for the same period ended December 31, 2015. The reasons for incurring losses for the financial period ended 31 December 2016 compared to the previous financial period was due to the overall decline in operating sales as a result of the delay in the supply of milk to Rawabi from Dubai for 3 months in addition to the weakness in the agricultural field revenues due to the high damages in the crops caused by the trespassing of cattle owners feeding on the company’s crops. Plus, the fire caught in one of the main warehouses caused significant book value losses. Plus, the company’s inability to obtain loans halted it from developing new sources of production or increasing its revenues which is caused mainly by the lengthy procedures for acquiring the title deed of the projects land. Lastly the delay in the amount of insurance compensation from the warehouse claim had a direct effect on the lack of liquidity. Total sales for the year totaled SAR 9.27 million comparing to SAR 23.28 million for the same period of last year which is a decline of 60%.