SISCO ended 2022 on positive note despite challenges; ports key growth contributor: CEO

Saudi Industrial Services Co.’s (SISCO) CEO Khalid Suleimani

Saudi Industrial Services Co.’s (SISCO) performance was promising in Q4 2022, despite the challenges witnessed over three quarters in a row, CEO Khalid Suleimani said. 

In a commentary on earnings, Suleimani stated that the company is positively recovering and will reflect a robust start in 2023. 

The ports segment was a key contributor to the company’s growth this quarter.

On the other hand, the logistic services segment suffered a marginal decline, due to a drop in services revenues, while the water segment’s revenues were stable.

However, SISCO’s profit margins improved significantly, the CEO pointed out.

Assets under management exceeded SAR 4 billion through a portfolio of seven companies.

Any developments will be announced upon initiating other investment opportunities, he added.

The company commits to implementing its five-year plan, which ends in 2026, with an aim to double revenues to reach SAR 2 billion.

This is planned to be carried out through developing managed assets, in terms of value and volume. This is besides expanding inside and outside the Kingdom.

The industrial service provider is expanding its ports segment’s works across international markets, after completing the recent expansions in the Jeddah Islamic Port.

Red Sea Gateway Terminal (RSGT), an affiliate, won a bid for building a container terminal in Bangladesh. Therefore, SISCO established an international special purpose vehicle (SPV) in order to promote the affiliate’s businesses worldwide.

The CEO added that the company is studying a wide range of investment opportunities, especially those related to third party logistics (3PL).

SISCO reported a net profit of SAR 36.7 million for 2022, a decline of 37% from SAR 57.9 million in the year-earlier period. Meanwhile, Q4 2022 net income amounted to SAR 18.4 million, Argaam earlier reported.