Red Sea International delivers multiple projects in 2022; faces challenges in Africa, Asia: CEO

RSI’s project in AlUla

Red Sea International Co.’s (RSI) construction and manufacturing (C&M) division successfully delivered multiple projects that were awarded during 2022, as the company's strategy is set to target mega projects in the Saudi market, CEO Khalid Fagih said.

RSI has operated in Middle Eastern, African, and Asian regions for many years. Due to the vast expansion of business in previous years, the parent company based in Saudi Arabia had faced some international risks and exposures.

The company successfully delivered the MDL Beast Sound Storm project valued at SAR 58.9 million, the Samsung C&T project at SAR 53.4 million, in addition to other projects. RSI company has been awarded a SAR 194 million contract by the Royal Commission of Al Ula to construct the housing complex, which will be completed in 2023, Fagih added.

Commenting on financial results, Fagih said RSI absorbed the non-cash-based losses arising from its wholly owned subsidiaries in international markets, mainly Africa and Asia, which came in at SAR 56.2 million.

Further, non-cash-based expenses were also absorbed, including the depreciation and amortization, expected credit losses provision, as well as other related provisions and impairments amounting to SAR 123.6 million, resulting in a loss of SAR 197.5 million.

Elsewhere, the CEO affirmed that RSI’s facility management and camp operation division made a significant profit of SAR 48.8 million in 2022. The company is focusing on mega projects and developing this line of business as a separate business segment to target upcoming mega projects, in order to further improve the profitability and efficiency of its operations in the Saudi and international markets.