Sustained Infrastructure Holding Co. — Earnings Release 2021

Mar 2, 2022

Saudi Industrial Services Co. announces its Annual Financial Results for the Period Ending on 2021-12-31

2190 · 02/03/2022 08:32:13 · Announcement #66924 · View on Saudi Exchange

Saudi Industrial Services Co. announces its Annual Financial Results for the Period Ending on 2021-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	985.4	1,020.9	-3.477
Gross Profit (Loss)	446.5	423.7	5.381
Operational Profit (Loss)	278.3	256.2	8.626
Net Profit (Loss) after Zakat and Tax	57.9	139.4	-58.464
Total Comprehensive Income	61.6	132.4	-53.474
Total Share Holders Equity (after Deducting Minority Equity)	1,486	1,174.5	26.521
Profit (Loss) per Share	0.71	1.71
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The decrease in net profit for the current year as compared to the previous year is due to the following reasons:

1. In the previous year (2020), SISCO’s net profit included one-off gains and reversal of provisions and liabilities amounting to positive impact on net income of SAR 72.9 million.

2. SISCO’s share of RSGT net income reduced from 60.6% to 36.36% during the period following the strategic divestment of its direct equity stake.

3. During the second half of 2021, gateway volumes in the ports segment declined due to headwinds in global logistics, impacting margins during the year.

4. SISCO incurred a number of one-off items amounting to a net amount of SAR 7.1 million in 2021.

Gross profit for FY 2021 increased by 5.4% to SAR 446.5 million, predominantly driven by revenue growth in the ports and logistics segments. Statement of the type of external auditor's report Unmodified opinion Reclassification of Comparison Items 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. Additional Information In accordance with IFRIC 12 (IFRS Interpretations Committee) 12, reported revenue includes construction revenue of SAR 64.20 million. There is no impact on gross profit or net profit as there is a corresponding construction cost of SAR 64.20 million recognized in the cost of revenue.

Outlook and strategy:

In the second half of 2021, SISCO announced its new growth strategy which aims to double revenues and improve margins over the next five years, by expanding logistics services with an emphasis on an asset light model, growing the ports segment beyond Saudi Arabia and driving the full potential of the existing portfolio. Management believes that the Group is making good progress with the execution of this strategy, optimizing the portfolio to deliver synergies with the existing logistics services division.

SISCO continues to make progress on the implementation of its recently updated five-year strategy for growth, which aims to leverage existing capabilities in its core segments to invest in assets with a significant opportunity to be scaled-up and accelerate the returns timeline for SISCO and its shareholders. Key milestones during the year, in support of delivering on the strategy, included the part divestment of the Group’s direct equity stake in RSGT, ramp-up in logistics capacity expansion by subsidiary LogiPoint, and an important independent sewage water treatment plant award for Tawzea. Attached Documents  

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