SGS earns SAR 90 mln in H1 2023, posts SAR 49.9 mln profit in Q2

Saudi Ground Services Co. (SGS) swung to a net profit of SAR 90 million in H1 2023, from a net loss of SAR 85.9 million in H1 2022.

The company reported a 29% rise in revenues year-on-year (YoY) on the gradual improvement in air traffic. Moreover, gross profits surged 119% YoY despite a 19% YoY increase in the cost of revenues.

The six-month results were lifted by an increase in SGS’ profit share from equity-accounted investees and income from term deposits by SAR 14.7 million and SAR 22.1 million, respectively. The company also reported a decrease in administrative expenses and provisions for Zakat by SAR 14.1 million and SAR 42.1 million, respectively, compared to H1 2022. 

The ground handling services provider recorded a one-off gain of SAR 23.7 million from the sale of local equity shares in H1 2022.

SGS made a net profit of SAR 49.9 million in Q2 2023, against a net loss of SAR 66.85 million in Q2 2022. Revenues jumped 26% YoY due to better air traffic despite a 17% increase in the cost of revenues. Gross profits soared 108% YoY in Q2 2023.

Further, administrative expenses declined by SAR 13.1 million YoY. SGS’ profit share from equity-accounted investees rose by SAR 7.9 million. Income from term deposits grew by SAR 11.5 million. 

The second-quarter net profit jumped 24.7% from SAR 40 million in Q1 2023, thanks to an 11% rise quarter-on-quarter (QoQ) in revenues. Administrative expenses decreased 20% on a sequential basis.

Shareholders’ equity, no minority interest, rose marginally to SAR 2.19 billion as of June 30, 2023, from SAR 2.17 billion a year earlier.

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