SISCO CEO says currently “hard to predict” coronavirus impact on company’s business

It is presently hard to predict the direct impact of coronavirus on the business performance of Saudi Industrial Services Co. (SISCO), CNBC Arabia reported, citing CEO Mohammed Mudarres.

However, Mudarres added that the coronavirus crisis has an impact on the company’s operating segments, but the extent varies from one segment to another.

“The impact on supply chain, transportation and logistics services may be relatively less than other sectors,” Mudarres said.

He pointed out a major impact on the company’s water segment, given SISCO is a key supplier for food and beverage (F&B) factories, which are currently experiencing a slight decrease in consumption.

Mudarres also asserted that the firm is taking all necessary precautions to rationalize spending and maintain revenues.

“We will assess the current situation to develop a better vision in the coming weeks,” the CEO added.

According to data compiled by Argaam, Saudi Arabia announced urgent initiatives worth SAR 120 billion to support the private sector to mitigate the economic effects of coronavirus, in addition to cutting the rates of reverse repo to 50 basis points and repo to 100 basis points for maintaining monetary stability.