Sistema-Hals Posts Net Loss of $78M

Property developer Sistema-Hals on Monday reported a net loss of $77.6 million for the first nine months of 2007, compared with a net profit of $34.3 million in the same period last year.

The company, part of diversified holding company Sistema, said operating expenses rose by 165 percent to $279.3 million mainly due to a $98 million noncash expense on a stock option bonus plan for management and the board of directors.

"The increase in SG&A [sales, general and administrative expenses] was also caused by an increased number of personnel in line with an increase in the number of new development projects," the company said.

Its consolidated revenues rose by 28.8 percent to $207.5 million, with the real estate development division accounting for 68.6 percent of total revenues.

Other divisions include project and construction management, asset management and facility management.