SISCO reduced loans to SAR 900 mln, says CEO

Saudi Industrial Services Co. (SISCO) was able to reduce its loans to about SAR 900 million from SAR 1.2 billion over the past few years, CEO Mohammed Mudarres told CNBC Arabia.

All loans are long term used for several projects, mainly the firm’s expansion work, he said, adding that loans are repaid in fixed annual installments that the firm is able to pay on time.

Commenting on SISCO’s results, Mudarres said that the firm launched this year a marketing plan targeting new markets. The impact started to show as of Q2 2018 and continued in Q3.

The company was able to attract a new marine shipment firm, but the impact was weak in Q1, he said.

Saudi Ports Authority’s revised inspection fees have affected the company’s revenues by SAR 30 million, he said, noting that the ports business accounts for 60 percent of revenues and earnings.

Three factors had an impact on the company’s costs; government fees, expatriate workers fees and finance charges, in addition to operation works at some business segments, he said.

SISCO is currently studying future expansion plans, including projects in the ports sector, logistics, and water projects such as water treatment and desalination, he added.

According to data compiled by Argaam, SISCO’s net profit almost doubled year-on-year to SAR 11.1 million in Q3 2018.