Sustained Infrastructure Holding Co. — Interim / Quarterly Report 2021

May 2, 2021

Saudi Industrial Services Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

2190 · 02/05/2021 09:03:10 · Announcement #63163 · View on Saudi Exchange

Saudi Industrial Services Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	258.3	167.3	54.393	378.3	-31.72
Gross Profit (Loss)	134.9	53.2	153.571	122.5	10.122
Operational Profit (Loss)	94.8	13.4	607.462	78	21.538
Net Profit (Loss) after Zakat and Tax	32.3	26.6	21.428	28.1	14.946
Total Comprehensive Income	32	23.1	38.528	24.1	32.78
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	1,206.5	1,114.2	8.283
Profit (Loss) per Share	0.4	0.33
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of 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:

- Strong revenue growth of 54.4%, driven primarily by strong top-line performance by the Company’s ports segment, predominantly driven by stronger volumes, efficiencies and other new concession terms that came into effect from 1 January 2021 and an improvement in service revenue in the logistics segment;

- Gross profit increased by 153.7% compared to Q1 2020, due to the revenue growth and capitalisation of fixed and variable fee; and

- Share of results of associate companies increased by 55.7% due to better performance in Q1 2021.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period 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:

- Compared to the previous quarter, revenue declined by 31.7%. However, excluding the impact of accounting construction revenue which does not impact gross profit or net income, revenue grew by 5.8%. This was driven by strong top-line performance by the Company’s ports segment;

- Gross Profit increased by 10% mainly due to the above factors and a decrease in direct costs; and

- One off reversal of old liabilities of SAR 4.6 million during Q1 2021Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Financial Statements for the current period have been prepared according to 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 financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.Additional Information Net income for the quarter grew 21.4% with a net income margin (excluding accounting construction revenue) of 12.7%. Total assets reached SAR 4.4 billion, and investment income of SAR 5.8 million increased by 55.7% compared to SAR 3.7 million in Q1 2020. Operating expenses remained broadly in line with last year.

Strategy and outlook:

SISCO will continue to invest in assets and companies in the ports, logistics and water segments, where significant potential earnings opportunities exist, and where the Company’s management can provide oversight on operational and growth strategies. Meanwhile, the Group will build on its current portfolio of subsidiaries, to take advantage of emerging market opportunities. The Company is currently undergoing a strategic review exercise, for which it has appointed an external consultant, and expects to announce further developments to its strategy in due course.Attached Documents  

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