SISCO to continue issuing dividends, diversifying investments: CEO

Saudi Industrial Services Co. (SISCO) will continue issuing cash dividends to shareholders, either at the 2014 rate or at a new rate, as it puts together a 2020 strategy in the coming months, the company’s chief executive Mohammed Al-Mudarres said in an exclusive interview with Argaam.

Al-Mudarres said the new strategy will also focus on diversifying SISCO’s investments and sources of income. The company is also looking to expand by developing and investing in existing and new projects that support its business objectives.

The Red Sea Gateway Terminal (RSGT), a mega terminal located at Jeddah Port, is close to reaching maximum capacity three years after SISCO spearheaded its launch. The company is now planning to enhance the terminal’s performance, according to Al-Mudarres.

As for fuel operations, SISCO aims to develop the operations of its 97 percent-owned subsidiary Isnad and enter into strategic partnerships to enhance logistics services segment and focus on support services for the port segment.

Isnad operates two fuel stations in Jeddah and Riyadh. The lease contract of the Jeddah-based unit was ended in 2013, while the Riyadh station lease is set to expire in the fourth quarter of this year.

SISCO’s chief executive added that he does not expect to take any additional provisions for the firm’s Yemen operations following the provisions that were allocated for impairments related to its Kindasa project during the first quarter.

Argaam Reports