SAIC has robust financial position, strategy change to reflect positively on performance: CEO

Abdullah Aljuraish CEO and Managing Director of Saudi Advanced Industries Co.

Saudi Advanced Industries Co. (SAIC) has a strong financial position and does not have any loans or other indebtedness outstanding, CEO and Managing Director Abdullah Aljuraish told Argaam.

He told Argaam that the company started to exit and restructure some investments.

SAIC seeks to diversify its investment portfolio further by exiting products companies and shifting to those with growth potential. This is the most prominent change in the firm's new general strategy, the CEO explained.

Aljuraish pointed out that the company leverages the available opportunities, while restructuring the existing and previous investments.  

The strategy's financial impact will likely appear as of the second quarter after undertaking a number of investments that will have a significant impact.

SAIC current investment portfolio is diversified, the top executive said, adding that the firm invests in different sectors and a variety of investment assets.

The company has no investments outside the Saudi market. It targets sectors that are in line with the goals of Vision 2030.

Further, SAIC is studying some investment opportunities and acquisitions in the healthcare and education sectors, which will be announced in due course.

Regarding the first-quarter results, the CEO said the profit decline was due to a lower profit share from associates, which represented 85% of SAIC's total revenue in the three-month period.

Income from associates dropped 80% and 40% in the first quarter of 2023, hurt by economic events and interest-rate hikes. However, SAIC managed to exploit other investments to offset a large portion of its profit slump, although it believes many of its current investments are still undervalued.

Elsewhere, Aljuraish indicated that the planned capital increase aims to explore more opportunities with robust returns and growth potential to achieve the company's aspirations.

Touching on updates on the Deutsche Gulf IPO, the CEO said it is expected between the third and fourth quarters of 2023. He indicated that the financial advisor was appointed after obtaining the Saudi Central Bank's (SAMA) approval on the listing.

As for his forecasts for the company's performance, Aljuraish said the change in the strategy will reflect positively and significantly on financials starting from the second quarter, expecting SAIC to achieve outstanding results.

SAIC reported a 29% drop in Q1 2023 net profit to SAR 22.1 million, from SAR 30.9 million in the year-earlier period, according to data available with Argaam.