Mouwasat expects revenue growth in 2016 on added hospital capacity

Mouwasat Medical Services Co, which owns and manages medical facilities, has said that its 2016’s revenue is estimated to grow on the back of income generated from its new hospital in Riyadh, which will operate at full capacity this year.

Opened last year, Riyadh Mouwasat Hospital posted SAR 65 million in revenue and SAR 22 million losses in FY-2015.

Regarding its other projects and expansion plans, the company’s hospital in Jubail is expected to start the soft opening in Q2 2016 as the construction work of the expansion project has almost been completed, it added. The expansion includes adding 100 hospital beds and 30 outpatient clinics to the current capacity.

The company has started construction work of its Mouwasat Hospital in Khobar, and is expected to be complete by Q3 2018. It is slated to start commercial operation in Q3 2019.

The company’s contract with Johns Hopkins Aramco Healthcare will expire on March 31, 2016, it added. However, Mouwasat has held negotiations with Johns Hopkins Aramco on the value of the contract and expects to be awarded another.

Mouwasat’s profit in 2015 declined 13 percent to SAR 209 million, or SAR 4.18/share, year-on-year as the company’s 2014’s report included capital gains of SAR 24 million due to the sale of land.

Revenues in 2015 increased 11 percent to SAR 1 billion.