Saudi Ground Services swings to quarterly losses

Revenue fell by 82.24% year-on-year during Q2-20

  

Riyadh - Mubasher: Saudi Ground Services Company (SGS) reported net losses after Zakat and tax of SAR 197.87 million in the second quarter ended 30 June 2020, compared with net profits of SAR 123.86 million in the corresponding period in 2019.

Revenue contracted by 82.24% in Q2-20, reaching SAR 115.09 million when compared to SAR 648.02 million in Q1-19, according to a statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

The turn to losses resulted from the suspension of most flights due to the precautionary measures taken to curb the coronavirus (COVID-19) outbreak.

The COVID-19 pandemic has indirectly affected the equity accounted investment and resulted in a loss of SAR 8.9 million, SGS disclosed.

Despite the current challenges, the company has implemented several initiatives to raise the efficiency of operation and reduce the effect of the pandemic on the company’s profitability. Most notably, costs were down by SAR 210 million in Q2-20.

In addition to cost reduction, the company has increased sales by providing disinfection services for aircrafts among other services whose sales exceeded SAR 32 million.

In the first half (H1) of the year, the losses registered SAR 249.412 million, versus profits of 227.976 million in H1-19.

Source: Mubasher

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