12 November, 2018

SAPTCO inks $2.27bln deal with ADA for Riyadh Metro operation

The financial impact of the 12-year deal will start to appear in the fourth quarter of 2019

Picture used for illustrative purpose. Workers walk at the site of the under-construction Riyadh Metro rail system in the Saudi capital Riyadh August 26, 2015.

Picture used for illustrative purpose. Workers walk at the site of the under-construction Riyadh Metro rail system in the Saudi capital Riyadh August 26, 2015.

REUTERS/Faisal Al Nasser

Riyadh – Mubasher: Saudi Public Transport Co. (SAPTCO) has signed a SAR 8.53 billion ($2.27 billlion) contract with Arriyadh Development Authority (ADA) to operate and maintain Riyadh Metro’s first and second routes.

SAPTCO noted that the financial impact of the 12-year deal will start to appear in the fourth quarter of 2019, according to a statement to the Saudi Stock Exchange (Tadawul) on Monday.

In September, the firm revealed that ADA awarded a French-led consortium a contract for maintenance and operations of the first and second lines of the Riyadh train project, adding that it has a 20% stake in the consortium, while France-based RATP DEV has the remaining 80%.

SAPTCO last reported a 42.41% year-on-year profit drop for the first nine months of 2018, reaching SAR 61.213 million, from SAR 106.299 million in the year-ago period.

By 11:36 am Saudi time, SAPTCO's stock levelled up 3.10% to SAR 13.96.

Source: Mubasher

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