SISCO Holding incurs SAR 21.2M loss in Q1 2024 on one-off provision

Sustained Infrastructure Holding Co. (SISCO Holding) ) turned to a net loss of SAR 21.2 million in Q1 2024, against a net profit of SAR 19.4 million in the year-earlier period.

The company cited a contraction in gross profit margins to 51.6% in Q1 2024, from SAR 54.1% in Q1 2023. This was due to an increase in direct costs amid higher amortization and depreciation as well as capital expenditure in Q4 2023.

SISCO Holding also reported a rise in operating and finance costs for Q1 2024 amid higher interest rates.

Moreover, the company’s profit share from equity investees also declined year-on-year (YoY) during the first three months of 2024 on a one-off loss worth SAR 59.2 million from International Water Distribution Co. (Tawzea), of which SISCO Holding’s share reached SAR 29.6 million. The loss arose from a one-off provision for the additional costs in three engineering, procurement, and construction (EPC) projects.

On the other hand, SISCO Holding’s revenues, excluding accounting construction revenue, rose by 7.9% YoY in Q1 2024 amid overall improvement in segment operations.

It also sustained losses in the first three months of 2024 versus a net profit of SAR 6.8 million in Q4 2023. This came as revenues, excluding accounting construction revenue, slumped 6.7% quarter-on-quarter (QoQ) in Q1 2024 on the disruption of the Red Sea supply chain. Margins also decreased during the current quarter on higher direct costs.

Total shareholders’ equity, after minority interest, slid to SAR 1.49 billion as of March 31, 2024, from SAR 1.52 billion in the corresponding period a year ago.

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