SISCO Q1 2022 net profit plunges 98% to SAR 0.8 mln

Saudi Industrial Services Co.’s (SISCO) net profit after Zakat and tax plunged to SAR 0.8 million for Q1 2022, down 98% from SAR 32.3 million in Q1 2021.

The earnings drop came due to the ongoing global supply chain disruptions, compounded by the resumption of pandemic restrictions in China that affected gateway and transshipment volumes in the ports segment.

Revenues and profitability in the water segment were impacted due to a decrease in production of the desalination plant at Kindasa facility for two consecutive months, leading to a loss incurred by the subsidiary.

However, SISCO noted that all issues related to the decline have been resolved.

SISCO turned to profit in Q1 2022 compared to a loss of SAR 0.85 million in Q4 2021, as the previous quarter saw a decline in margins due to lower gateway volumes in the ports segment. The firm also noted a number of one-off items amounting to a net adjustment of SAR 6.5 million in Q4 2021.

Shareholders’ equity, excluding minority interest, fell 2.08% to SAR 1.455 billion by the end of Q1 2022, compared to SAR 1.486 billion in the year-ago period.

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