Mouwasat MD says profit improved on lower finance charges, expects ‘greater’ COVID-19 impact in Q2

Mouwasat Medical Services Co. managing director, Mohammed Bin Suliman Al-Saleem, attributed the improved profits in the first quarter 2020 to lower finance charges following the decline in SAIBOR, CNBC Arabia reported.

He added that the company's loans from local banks amount to nearly SAR 671 million.

On inaugurating specialty departments in some hospitals, Al-Saleem highlighted that the decision is not related to COVID-19 and falls within the market needs, in certain, stressing that that it has no major impact on costs.

“These new departments will contribute positively to improving revenue and providing distinguished medical services,” he further explained.

On the government’s precautionary measures, Al-Saleem said that the company’s operations were relatively impacted in Q1, particularly in the second half of March, expecting a “greater” impact in Q2 2020, due to the continuous measures and lower patient footfall.

Mouwasat witnessed an improvement in revenues during June 2020, he noted, indicating that the healthcare services are essential.

According to data compiled by Argaam, the medical services provider reported a net profit after Zakat and tax of SAR 108 million in Q1 2020, compared to SAR 107.2 million in Q1 2019.