MIS Q2 2022 results reflect positive shift, over SAR 3 bln projects likely by year-end: CEO

Abdullah AlGhamdi CEO of MIS

Al Moammar Information Systems Co.’s (MIS) Q2 2022 results underline the positive shift in the company’s performance, CEO Abdullah AlGhamdi told Argaam in a phone call.

He expects growth to accelerate, particularly with implementation of mega projects such as data centers.

MIS has a backlog of nearly SAR 2.7 billion, compared to SAR 1.2 billion in the same period of 2021. It was awarded new projects of up to SAR 2.2 billion this year, compared to about SAR 850 million a year earlier.

He expected MIS contracts to exceed over SAR 3 billion by the end of this year, noting that new awards signal the company’s strong position and ability to win strategic projects.

Elsewhere, AlGhamdi said the second-quarter revenues came from several ongoing projects, affirming that there is no major contribution by a specific project. Major projects are still in an early stage and have had no major impact to date on the company’s results. These projects will likely have higher contribution to MIS’ results in H2 2022.

MIS debts stood at almost SAR 415.86 million by the end of H1 2022, the CEO explained, adding that all debts are related to the implementation of projects.

The company’s cash balance reached SAR 192.33 million as of June 30, 2022, which reflects its robust balance sheet.

On the other hand, AlGhamdi said that MIS rules out any material impact of higher interest rates, backed by its ability to secure loans under better terms from borrowers.

He added that MIS Forward Co. plans to launch the e-market, MIS Home, before the end of Q3 2022. Licenses for the buy-now-pay-later (BNPL) products are expected to be obtained from the competent authorities in the near period. Moreover, the company completed the technical measures required for developing the open banking platform, and started talks with the relevant authorities to get the necessary permits.

He also expected improved performance to continue at an accelerated pace in the second half of 2022, compared to the first six months, with a triple-digit growth rate. He added that MIS is forecast to report record profit in 2022, compared to the previous years, in light of ongoing projects’ status as long as there are no developments or obstacles going forward.

AlGhamdi expected MIS to maintain its previously-announced dividend policy at 45% minimum of annual profit and continue to support its capital base.