Saudi Arabian builder Abdullah Abdul Mohsin Al-Khodari Sons on Sunday said its second-quarter net profit more than quadrupled as it sold some equipment and margins improved.

The company made a profit of SR34.9 million ($9.31 million) in the three months to June 30, up from SR7.9 million in the year-earlier period, according to a statement to Riyadh's bourse.

Two analysts polled by Reuters had forecast Khodari would make a quarterly profit of between SR23.7 million ($6.31 million) and SR26.4 million ($7.03 million).

Khodari said it had sold some equipment, which boosted its other income for the quarter to SR26.1 million (6.95 million), up from SR0.7 million a year earlier.

The company also attributed its profit surge to higher margins due to savings in materials, depreciation and temporary labour costs.

In May, a senior executive told Reuters that Khodari expected Saudi Arabia's government to compensate it for some of the costs of labour reforms.

In 2012, the government introduced a levy of SR2,400 ($640) a year for every foreigner whom a company employs above the number of its Saudi workers.

For companies such as Khodari, which has about 17,000 employees, the total cost can be substantial. -Reuters