Saudi Cable’s robust results driven by affiliate, exit from Turkey investment: CEO

Khaled Khashoggi, CEO and Managing Director of Saudi Cable Co. said that the robust results achieved by the company were driven by the improvement in the business of its affiliate Midal Co., and also from the exit of the Turkish investment and the reduction of fixed costs in the Jeddah factory.

 

In an interview with Argaam, the top executive indicated that the company's profit in Q3 2024 was spurred the continuous growth in the activities of the technical arm (contracting) of the company in Bahrain, as well as its share in the results of the profits of its affiliated company.

 

He pointed out that the production capacity reached 10% in Q3 2024, which was reflected in the company's revenues and led to covering part of the fixed costs.

 

The volume of sales in Q3 2024 amounted to SAR 7.3 million, compared to SAR 3.5 million in Q3 2023, a growth rate of 109%.

 

He added that demand is increasing for both copper and aluminum cables, and that the affiliated company is showing outstanding performance, as the growth in its profits is noticeable quarter after quarter.

 

The issue of financial regulation and approval of the financial regulation plan as well as the list of claims at the Commercial Court in Jeddah are still ongoing. The company's management is in continuous follow-up in order to complete this procedure as soon as possible and return the company to normal operation, according to the CEO.

 

Khashoggi expected that demand will pick up in Q4 2024, whether in its affiliate Midal or the parent company in Jeddah, as the company will start receiving some customer requests, and the management will work to attract more customers and gradually increase its market share.

 

According to data available with Argaam, Saudi Cable posted SAR43 million profit for the first nine months of 2024, compared to SAR 61.2 million recorded during the same period in 2023.