Financial Results : SGS earns SAR 90 mln in H1 2023, posts SAR 49.9 mln profit in Q2

SGS earns SAR 90 mln in H1 2023, posts SAR 49.9 mln profit in Q2

13/08/2023 Argaam Exclusive

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Saudi Ground Services Co. (SGS) swung to a net profit of SAR 90 million in H1 2023, from a net loss of SAR 85.9 million in H1 2022.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 920.50 1,190.34 29.3 %
Gross Income 92.77 202.76 118.6 %
Operating Income (41.10) 79.94 294.5 %
Net Income (85.86) 89.98 204.8 %
Average Shares 188.00 188.00 -
EPS (Riyals) (0.46) 0.48 204.8 %

The company reported a 29% rise in revenues year-on-year (YoY) on the gradual improvement in air traffic. Moreover, gross profits surged 119% YoY despite a 19% YoY increase in the cost of revenues.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 495.71 626.47 26.4 %
Gross Income 49.04 102.12 108.2 %
Operating Income (18.31) 44.17 341.2 %
Net Income (66.85) 49.93 174.7 %
Average Shares 188.00 188.00 -
EPS (Riyals) (0.36) 0.27 174.7 %

The six-month results were lifted by an increase in SGS’ profit share from equity-accounted investees and income from term deposits by SAR 14.7 million and SAR 22.1 million, respectively. The company also reported a decrease in administrative expenses and provisions for Zakat by SAR 14.1 million and SAR 42.1 million, respectively, compared to H1 2022. 

 

The ground handling services provider recorded a one-off gain of SAR 23.7 million from the sale of local equity shares in H1 2022.

 

SGS made a net profit of SAR 49.9 million in Q2 2023, against a net loss of SAR 66.85 million in Q2 2022. Revenues jumped 26% YoY due to better air traffic despite a 17% increase in the cost of revenues. Gross profits soared 108% YoY in Q2 2023.

 

Further, administrative expenses declined by SAR 13.1 million YoY. SGS’ profit share from equity-accounted investees rose by SAR 7.9 million. Income from term deposits grew by SAR 11.5 million. 

 

The second-quarter net profit jumped 24.7% from SAR 40 million in Q1 2023, thanks to an 11% rise quarter-on-quarter (QoQ) in revenues. Administrative expenses decreased 20% on a sequential basis.

 

Shareholders’ equity, no minority interest, rose marginally to SAR 2.19 billion as of June 30, 2023, from SAR 2.17 billion a year earlier.

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