- Ports revenues in Q3’22 improved quarterly and year-on-year, as volumes recovered
- Significant expansion of gross profit margins in Logistics and Water segments, expected to be sustained into 2023
- Third quarter gross profit margin of 49.3% improved from 44.5% in Q3’21
Jeddah, Saudi Arabia: Saudi Industrial Services Company (“SISCO”, the “Company” or the “Group”), Saudi Arabia’s leading strategic investor in Ports & Terminals, Logistics Parks & Services, and Water Solutions, has announced its financial results for the three-month and nine-month periods ended 30 September 2022.
Revenues for the third quarter of 2022, excluding accounting construction revenue, were stable compared to the previous quarter at SAR 214.7 million, increasing by 0.7%. Q3’22 revenues were down by marginally by 1.5% year-on-year, with gradual improvement for the Ports segment, while Logistics revenues also improved from the previous quarter. Nine-month revenue of SAR 624.0 million declined 12.9% from 2021 due to the much stronger first-half performance of the Ports segment in the previous year.
Third quarter gross profit of SAR 105.8 million improved by 6.1% on the previous quarter and by 9.1% compared to Q3’21 on significantly improved margins achieved through optimized revenue mix and effective cost controls. The gross profit margin for Q3’22 stood at 49.3%, compared to 46.8% in Q2’22 and 44.5% in Q3’21. Gross profit for the nine-month period was SAR 295.7 million, declining by 16.8% from 2021 predominantly impacted by the decline in gateway revenue in the ports segment.
In light of significantly improved margins, adjusted net income for the third quarter improved by 364.5% from the previous quarter and by 56.6% year-on-year to reach SAR 14.4 million. For the nine-month period, adjusted net income was SAR 18.3 million, declining by 69.2% year-on-year, due to weaker first-half revenues as compared to the previous year.
