Saudi Cable’s robust results driven by affiliate, Turkey investment exit: CEO

Khaled Khashogji, CEO and Managing Director of Saudi Cable Co. said the company’s recent robust results were driven by the improved business of its affiliate Midal Cables Co., paired with the exit from its Turkish investment and the reduction of fixed costs in the Jeddah factory.

In an interview with Argaam, the top executive indicated that the company's profit in Q3 2024 was spurred the continuous growth in the activities of its Bahrain-based technical arm (contracting), alongside its share in earnings of its associate, Midal Cables.

He pointed out that the production capacity reached 10% in Q3 2024, which was reflected in the company's revenues after covering part of the fixed costs.

The third-quarter sales volumes amounted to SAR 7.3 million, up 109% from SAR 3.5 million in Q3 2023.

According to the CEO, demand is increasing for both copper and aluminum cables. Saudi Cable’s affiliate is showing outstanding performance, as its profit growth has been noticeable quarter after quarter.

The predicament related to the company’s financial restructuring procedure (FRP) and the relevant legalities, coupled with the list of creditors’ claims at the Commercial Court in Jeddah, remains ongoing. The management is constantly following up in order to complete the FRP as soon as possible and return the company to its normal stance, he pointed out.

Khashogji expected demand to pick up in Q4 2024, whether in its affiliate Midal Cables or the parent company in Jeddah. Some customer requests could be received, and the management will work to attract more clients and gradually ramp up its market share.

According to data available with Argaam, Saudi Cable posted SAR 43 million in profit for the first nine months of 2024, compared to SAR 61.2 million during the same period in 2023.