Saudi Ground Services turns to losses of SAR 249.4 mln in H1 2020

Saudi Ground Services Co. reported a net loss after Zakat and tax of around SAR 249.4 million for the first half of 2020, compared to a net profit of SAR 227.9 million in the same period last year.

The losses were attributed to the suspension of flights following the precautionary measures to control the spread of COVID-19 except for evacuation flights and return of domestic air traffic early June which did not exceed 18% of the volume of operations before the pandemic. These events led to a direct impact on the company's operations as revenue fell by 50% to SAR 629.8 million, and impairment loss on trade receivables increased by SAR 45.1 million.

The company reported a net loss after Zakat and tax of SAR 197.9 million in Q2 2020, compared to a net profit of SAR 123.9 million in the year-earlier period, due to suspension of flights leading to an 83% drop in revenues.

On a sequential basis, Q2 net loss widened from SAR 51.5 million reported in Q1 2020.