RIYADH: Saudi Industrial Services Co. is going to push ahead with its expansion plans despite seeing its profits plunge 93 percent in the first half of the year.
The firm’s CEO, Mohammed Al Mudarres, told Argaam that SISCO is continuing with its proposed strategy in acquisitions and expansion to achieve its strategic objectives for 2025 and 2026.
Al-Mudarres pointed out challenges in the port and logistics sector during the first half of the year, due to threats related to supply chains between China and Europe, rising shipping rates, and closures in China and shutdown of some plants.
While the firm pulled in just SR3.9 million in the first six months of 2022 compared to SR54.7 million during the same period the previous year, the second quarter of this year did see a rally in profits.
Gains over those three months stood at SR3.1 million, compared to SR0.8 million in the first quarter, driven by higher profitability at its subsidiary Kindasa Co. coupled with performance improvement from associate companies.
The firm is expected to achieve better results in the second half of 2022, on improved performance of the ports, logistics, water and other sectors, according to Al-Mudarres.
The top official indicated that customs duties and inflation in commodity prices were among the reasons that led to certain challenges faced by the import sector.
He concluded that this is a temporary period, as the market will become accustomed in the coming months and adapt to the current price rates.
SISCO declared a 4 percent interim dividend for 2022, as per its dividend policy.