Saudi Ground Services turns to loss of SAR 336.2 mln in 9M 2020

Saudi Ground Services Co. (SGS) turned to a net loss after Zakat and tax of SAR 336.2 million for the first nine months of 2020, compared to a net profit of SAR 348.2 million in the same period a year earlier.

The earnings were driven by the suspension of both international and domestic flights as a result of precautionary measures taken by the government due to the outbreak of COVID-19, which had a direct impact on the company’s operations, which caused a decrease in revenue and an increase in impairment loss on trade receivables.

In addition, COVID-19 indirectly impacted investment in equity, which contributed to an increased loss of SAR 30.5 million.

Despite the challenges faced by the company in light of the pandemic, SGS executed several initiatives aimed at increasing the efficiency of operation, thus reducing the impact on profitability and ensuring its continuity and competitiveness are achieved.

In Q3 2020, SGS turned to a net loss after Zakat and tax of SAR 86.8 million, due to air travel suspension in the light of the COVID-19 pandemic.

On a sequential basis, Q3 2020 net loss declined 56% due to higher volume of operation.