Sisco profits jump 269% during Q3 to SR14.4 mln

The Saudi Industrial Services Company (Sisco) revealed an increase in net profit after zakat and tax in the third quarter to SR14.4 million, compared to SR3.9 million in the same quarter of last year, at a rate of 269.2%.
This came after the announcement on Thursday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR60.4 million in the third quarter, compared to SR54.1 million in the same quarter of the previous year, an increase of 11.6%.
The net profit after zakat and tax in the 9-month period amounted to SR18.3 million, compared to SR58.7 million in the same period last year, a decline of 68.8%.
The gross shareholders’ equity “without minority rights” amounted to SR1.4 billion in the current period, compared to SR1.5 billion in the same period last year, a decrease of 5.1%.
Profits per share in the current period amounted to SR0.22, compared to SR0.72 in the same period last year.
The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The increase in net profit during the current quarter compared to the same quarter of the previous year is due to the following reasons:
– Improvement in gross profit for the period to SR 105.8 million from SR 97.0 million in the same quarter last year, due to better performance of the Water and Logistics segments as a result of improved sales mix and lower cost of sales.
– Q3 2022 income from associate companies improved by 7.9% compared to Q3 2021, reaching SR 8.2 million
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The increase in net profit for the current quarter as compared to the previous quarter is due to the following reasons:
– Q3 2022 net income increased 364.5% compared to Q2 2022 to reach SR 14.4 million due to improved margins and net income from Ports, Logistics, and Water business segments compared to the previous quarter.
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
Reported net income for the nine-months 2022 was SR 18.3 million compared to SR 58.7 million for the same period last year. The drop was mainly attributed to the decline in Ports segment revenues during the first half of 2022 in addition to the decline in Water segment revenues during the first quarter of 2022 due to an unplanned plant shutdown, which was resolved.
– Increase in income from associates by 18.3% compared to 9M 2021
Financial statements for the current period have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and based on that the presentation, measurement, recognition, and disclosure for some of the financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.
In accordance with IFRIC 12 (IFRS Interpretations Committee) 12, the reported revenue includes construction revenue of SR [46.3] million. There is no impact on gross profit or net profit as there is a corresponding construction cost of SR [46.3] million recognized in the cost of revenue.
Outlook and strategy:
SISCO remains committed to the delivery of its five-year strategy to drive long-term value creation, aiming to double revenues to SR 2 billion by 2026. SISCO’s investment approach focuses on value-accretive investments that are in line with its strategic focus areas of ports, logistics, and water. SISCO will announce updates to the market as other opportunities materialize.
In a post reporting period event dated 1 November 2022, SISCO’s subsidiary, LogiPoint announced acquiring a loan facility of SR 290 million to finance the expansion of its warehousing capacity. The expansion, which doubles the existing 73,000 square meters capacity, is in line with the group’s 5-year strategy to make LogiPoint as the leading logistics real estate developer and operator of state-of-the-art warehousing services and premium logistics facilities across the Kingdom, serving the rapidly growing e-commerce sector.
Further potential growth areas are also expected to be developed including a state-of-the-art logistics park in Khumra which should boost logistics revenues and margins from 2023 and beyond.