Saudi Ground Services earns SAR 149.9 mln in 9M 2023, SAR 59.9 mln in Q3

Saudi Ground Services Co. (SGS) swung to a net profit of SAR 149.9 million in the first nine months of 2023, against a net loss of SAR 136.7 million in the prior-year period.  

It also turned a profit of SAR 59.9 million in Q3 2023 from a net loss of SAR 50.8 million in Q3 2022.  

The ground handling services provider cited a year-on-year (YoY) increase of 24%, or SAR 361.5 million, in revenues driven by better air traffic.

Gross profit also surged 136% YoY. The company’s share of profits from equity accounted investment and income from term deposits increased by SAR 20.1 million and SAR 31.3 million, respectively. Meanwhile, administrative expenses and Zakat provisions decreased YoY.

By contrast, the cost of revenues increased by 13%, or SAR 176 million, YoY due to the company’s initiatives to boost productivity and rationalize expenses.

It also turned a profit of SAR 59.9 million in Q3 2023 from a net loss of SAR 50.8 million in Q3 2022, thanks to a 17% rise YoY in revenues amid better air traffic. Gross profit also saw a YoY spike of 172%. Income from term deposits grew by SAR 9.1 million.

Meanwhile, SGS recorded a decrease in administrative expenses and Zakat provision by SAR 4.5 million and SAR 13.7 million, respectively, compared to the same period of the previous year.

SGS bottom line jumped 19.9% quarter-on-quarter (QoQ) from SAR 49.9 million, thanks to 3% revenue growth.

Total shareholders’ equity, no minority interest, increased to SAR 2.25 billion as of Sept. 30, 2023, from SAR 2.12 billion in the year-earlier period.

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