Saudi Cable likely to turn to profit by 2020: Chairman

Saudi Cable Co. is expected to turn to profitability by H2 2019 or 2020, CNBC Arabia has reported citing Chairman Meyassar Nowailati.

“The company currently operates at a capacity utilization rate of 30 percent and sustains operating losses due to its inability to finance the purchase of raw materials,” Nowailati said.

It has to operate at a utilization rate of 50 percent and get new projects to turn to profit, he added.

The company’s rescue plan will come to fruition over the coming months, Nowailati noted, adding that it has SAR 560 million in debts and that negotiations with three creditors reached a final stage.

The asset sale was needed to free cash to fuel debt rescheduling negotiations with creditors, he said.

The Chairman assessed that the ‘trade war’ between USA and China shall have no impact on the business, but aluminum operations may be affected by USA tariffs on steel and aluminum imports.