Q1-2022 revenue impacted by restrictions in China and continued global supply chain disruptions
Saudi Industrial Services Company (SISCO), Saudi Arabia’s leading strategic investor in ports and terminals, logistics parks and services, and water solutions, has announced its financial results for the quarter ended 31 March 2022.
SISCO’s Q1-2022 revenue, excluding accounting construction revenue, was SAR 196.2mn (US$ 52.3mn) compared to SAR 253.6mn ((US$ 67.61mn) for the same period last year. The Company’s results for the quarter were impacted by ongoing global supply chain disruptions which were compounded by the resumption of pandemic restrictions in China, which significantly impacted gateway and trans-shipment volumes in the Ports segment, the company indicated in a press communique.
Revenues and profitability in the water segment were impacted during the period due to temporary decrease in production of the Kindasa facility for two months during the quarter.
Consequently, gross profit for the period declined to SAR 90.2mn (US$ 24.05mn) in Q1-2022, from SAR 134.9mn (US$ 35.96mn) in the same period last year, due to a temporary decrease in production in the Kindasa plant.
“During the quarter, we made solid progress on the execution of our strategy to capture long-term value creation opportunities in the Kingdom’s logistics and infrastructure sectors. These are primed to deliver significant long-term structural growth in line with Vision 2030 and SISCO is positioned to be at the heart of that journey,” commented Mohammed Al-Mudarres, CEO, SISCO.
Ports and terminals were impacted by ongoing global supply chain disruptions and the resumption of pandemic restrictions in China, which suppressed imports during the quarter, affecting gateway and trans-shipment volumes. Consequently Q1-2022 revenue was SAR 156.4mn (US$ 41.69mn) in compared to SAR 206.8mn (US$ 55.13mn) in the same period last year.
Logistics parks and services revenue was broadly flat year-on-year at SAR 22.9mn (US$ 6.10mn) for Q1-2022.