Sisco profits decreased to SR36.7 mln in 2022, by 37%‎

The net profit after zakat and tax of the Saudi Industrial Services Company “Sisco” decreased to 36.7 million riyals during the year 2022 AD, compared to 58 million riyals in the year 2021 AD, at a rate of 37%. This came after today’s announcement of the annual financial results ending in 2022- 12-31.

The operational profit amounted to 230 million riyals during the year ending in 2022, compared to 278 million riyals in the previous year, a decline of 17%.

As for the gross profit, it amounted to 416 million riyals in the current year, compared to 447 million riyals in the previous year, with a decrease of 7%.

Earnings per share in the current year amounted to 0.45 riyals, compared to 0.71 riyals in the previous year.

The net profit for the year 2022 amounted to 36.7 million riyals, compared to 57.9 million riyals for the previous year. The reason for the decrease in the net profit for the current year compared to the previous year is due to the following reasons:

– The decline in the port sector’s revenues during the first half of 2022 AD, mainly due to the volumes of the port sector’s gates.

– Water sector revenues decreased during the first quarter of 2022 AD due to the unscheduled shutdown of the water plant, which has been resolved.

– Logistics services revenues decreased as a result of the decline in service revenues and open spaces

Despite lower revenues and gross profits, Sisco managed to maintain a gross profit margin of 48.7%, compared to 48.5% last year. The decline in net profit was offset by the strong performance of equity accounted associates (+30%) compared to last year.

The company said that the financial statements for the current period were prepared in accordance with the International Financial Reporting Standards approved in the Kingdom of Saudi Arabia. Accordingly, the presentation, measurement, estimation, and disclosure of some financial statements have been changed in a way that conforms to the accounting policies of the International Financial Reporting Standards adopted in the Kingdom.

Sisco is one of the first investment companies listed in the field of infrastructure and logistics services, as the company’s management focused in its investment approach on strategic investments with long-term cumulative value, and the value of its assets under management exceeded four billion riyals through which includes seven companies. The company will announce the latest developments when investing in other opportunities

Sisco remains committed to implementing its five-year strategy, which was announced in late 2021 AD, to create long-term value for its shareholders, and to double revenues to reach 2 billion Saudi riyals by 2026 AD by developing assets under management in terms of size, number, and expansion inside and outside the Kingdom. ..

For example, on November 1, 2022, LogiPoint, a subsidiary of Sisco, announced that it had obtained a loan of 290 million Saudi riyals to finance the expansion of its storage capacity. This expansion will double the existing capacity of 73,000 square meters, and other future growth plans include a logistics services station in Al Khumrah, which will enhance logistics revenues and profit margins starting from 2023 AD and the coming years.