Saudi Industrial Services Company (SISCO), an investor in ports and terminals, logistics parks and services, and water solutions, has announced its financial results for the first half of 2021.
First half revenue, excluding accounting construction revenue, increased by 30.1% year-on-year to SAR498 million, and 13.4% to SAR244.5 million in the second quarter driven by strong performance in the ports, logistics segments and slightly in water business.
Gross profit of SAR123.6 million increased by 6.6% from Q2 2020 predominantly driven by strong transshipment volumes in the ports segment and improved performance across the other segments. Gross profit decreased by 8.4% from the previous quarter due to a decline in gateway volumes and an increase in direct costs.
First half reported net income decreased by 34.2% to SAR54.8 million compared to the same period in the prior year and by 60.3% in Q2 2021 to reach SAR22.5 million compared to the same quarter last year.
This was principally due to the comparative periods in the prior year being impacted by a one-off IFRS 9 gain of SAR31.9 million and a SAR75 million release of asset replacement provision.
The second quarter revenue from the ports and terminals segment grew by 10.0% compared to Q2 2020, reaching SAR192.8 million whilst revenue from the logistics segment reached SAR26.7 million, a 37.9% increase over the same period. The water solutions segment was supported by volume growth resulting in a 20% revenue increase to SAR25.1 million for Q2 2021.
Mohammed Al-Mudarres, CEO at SISCO said: “SISCO delivered strong top and bottom-line results in the first half of the year with the port segment continuing to increase its market share in Jeddah Islamic Port for both gateway and transshipment volumes recording a 12% increase in total throughput year-on-year.”
Despite the positive port segment growth, overall gateway volumes across the Kingdom came under pressure during the second quarter which led to a decline in total gateway volumes during the quarter compared to the previous quarter and prior year.
The commendable performance by the port segment was supported by continued growth in warehouse and logistics services with water solutions business showing gradual improvement in trading performance.
Shortly after the end of the quarter, it completed the divestment of a 21.2% direct equity stake in its subsidiary Red Sea Gateway Terminal Limited (RSGT) to strategic partners PIF and COSCO.