Element ListExplanation
Introduction Referring to the announcement of the Saudi Industrial Services Company (SISCO) on 18/04/1441H corresponding to 15/12/2019, the Red Sea Gateway Terminal Company (a subsidiary of SISCO in which it owns 60.6% of the share capital) and Saudi Port Authority “Mawani” to develop a comprehensive long-term plan for the development of northern part of Jeddah Islamic Port “JIP”.
Date of Announcement of the Award 2019-12-15 Corresponding to 1441-04-18
Contract Subject Matter Red Sea Gateway Terminal Co. (RSGT) and the Saudi Ports Authority (Mawani) have signed a new 30-year concession starting in 2020 (replacing the current concession) on BOT basis. Under the new concession, RSGT will consolidate and redevelop the northern part of the JIP which will include the adjacent Container Terminal and RSGT’s existing terminal (which is under the scope of the current concession), to become the largest container terminal in Saudi Arabia and on the Red Sea.
Date of Signing the Contract 2019-12-23 Corresponding to 1441-04-26
Contract Value Expected: SR 6.6 billion over 30 years
Contract Details Terms of the concession require RSGT to commit SR 1 billion to consolidate and develop the infrastructure of the new terminal over the next three-year period as a first phase to increase the total capacity to 5.2 million TEUs. Further investment of SR 5.6 billion will be made during the remainder of contract period to increase the consolidated terminal’s capacity to 8 million TEUs.

The consolidation of RSGT and the adjacent container terminal and the planned investment and expansion will be funded by Shari’ah Compliant debt financing and revenue generated by RSGT.

Contract Duration 30 years
Financial Impact and the Relevant Period The financial impact of the new concession on SISCO’s consolidated financial statements is expected to be reflected positively during the second quarter of 2020.
Related Parties none
Additional Information The expanded facility will be the largest logistics gateway, and the busiest container terminal in Saudi Arabia and on the Red Sea.

The new investment is part of a comprehensive plan for upgrading and adding berth capacity and in the process will modernize the terminal yard and support facilities.

RSGT has already invested SR 2.5 billion under the current concession and the new investment in the development of the northern part of JIP will bring the total investment in JIP to SR 9.1 billion since the inception of the current terminal in 2009.

This investment supports RSGT’s strategy to become the leading port operator in Saudi Arabia and affirms RSGT’s commitment to Mawani over the years.

The signing of the new concession represents a major milestone for RSGT towards its strategic growth plans and supports SISCO’s strategy to create value for its shareholders.



Element ListExplanation
Introduction Regarding to Saudi Industrial Services Company announcement “SISCO” on 02/03/1441 H corresponding to 30/10/2019 for chosen of A consortium which is equally formed between International Water Distribution Company “Tawzea”( which SISCO owns 50% of its share capital of SAR 146 million in partnership with Saudi Arabian Amiantit Company) and the Spanish company "Cobra Instalaciones y Servicios" as the preferred bidder for Taif Independent Sewerage Plant Project. The Saudi Industrial Services Company (SISCO) announce that the contract has been signed by A consortium with Saudi Water Partnerships Company for plant development on 24 Rabi Al Awwal 1441H, corresponding to 21 November 2019.
Date of Posting the Previous Announcement of Development on Tadawul's Website 2019-10-30 Corresponding to 1441-03-02
Change on the Development The Contract has been Signed as previously announcement
Financial Impact on the change The financial impact will be reflected once the project is completed which is expected at the end of 2022 under SISCO's share of results of associates.
Additional Information The project includes design, build, operate and maintain the plant and transfer the ownership of the project on BOOT basis, along with the development of infrastructure and related facilities. The term of the contract is 25 years with expected investment of approximately 315 million Saudi Riyals. The project will be financed through a Sharia Compliant Islamic Finance Facility. The objective of the project will be to develop a wastewater treatment facility with a capacity up to 100,000 cubic meters per day and expandable to 270,000 cubic meters.

 

Construction of the project is expected to start during the second quarter of 2020, once the financing agreement with the bank is finalized. Any updates will be announced in due time.




Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 172.2 147.4 16.824 180.7 -4.703
Gross Profit (Loss) 70.2 54.1 29.759 77.6 -9.536
Operational Profit (Loss) 14.9 17.7 -15.819 43.3 -65.588
Net Profit (Loss) after Zakat and Tax 6.7 11.1 -39.639 21.3 -68.544
Total Comprehensive Income 5.1 12.6 -59.523 16.4 -68.902
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 519.4 416.3 24.765
Gross Profit (Loss) 220.4 147.1 49.83
Operational Profit (Loss) 91.5 46.2 98.051
Net Profit (Loss) after Zakat and Tax 45 23.7 89.873
Total Comprehensive Income 35.3 22.7 55.506
Total Share Holders Equity (after Deducting Minority Equity) 1,090.9 1,065.5 2.383
Profit (Loss) per Share 0.55 0.29
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to Despite continued improve in performance and an increase in the profitability of port segment due to higher volumes, net profit during the current quarter is lower than same quarter last year principally due to a total provision against trade receivables of SAR 16.6 million which comprises a provision of SAR13.5 million against one customer in the logistics segment as mentioned in the announcement dated 9 September 2019 and an additional general provision of SAR 3.1 million in the ports and logistics segments during the quarter.
Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Key reasons for the decline in the Net Profit during the current quarter compared to the previous quarter of the same year mainly due to a marginal decline in port segment revenue and an increase in operating costs during the quarter. Net profit further declines due to a total provision against trade receivables of SAR 16.6 million which comprises a provision of SAR 13.5 million against one customer in the logistics segment as mentioned in the announcement dated 9 September 2019 and an additional general provision of SAR 3.1 million in the ports and logistics segments during the quarter.
Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to Key reasons for the improvement in the Net Profit during the current period compared same period last year is due to an increase in the profitability of port segment despite an increase operating expenses and finance charges related to lease liabilities.
Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items Financial Statements for the current period have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and based on that the presentation, measurement, recognition and disclosure for some of financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.
Additional Information From January 1, 2019, the Company has adopted IFRS 16 (Leases). For further information on the impact of this standard, refer to note number (2) to the interim financial statements for the period ended 30 September 2019.

Element ListExplanation
Announcement Detail Saudi Industrial Services Company (SISCO) announces some developments with one of its associates, International Water Distribution Company “Tawzea” which SISCO owns 50% of its share capital of SAR 146 million in partnership with Saudi Arabian Amiantit Company. A consortium which is equally formed between “Tawzea" and the Spanish company "Cobra Instalaciones y Servicios" was chosen as the preferred bidder for Taif Independent Sewerage Plant Project on 29 October 2019 by the Saudi Water Partnership Company.

 

Upon final award of the project, the consortium “Tawzea & Cobra” will finance, develop, design, build, operate and maintain the plant and then transfer, on (BOT) basis, along with the development of infrastructure and related facilities. The term of the contract is 25 years. The company which will be established for the project will treat the full capacity of the wastewater supplied to the company with capacity up to 100,000 cubic meters per-day.

SISCO will announce any updates regarding the project and financial impact on its financials once the contract is awarded.






Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 180.7 150.9 19.748 166.5 8.528
Total Profit (Loss) 77.5 55.8 38.888 72.7 6.602
Profit (Loss) Operational 43.3 24.6 76.016 33.3 30.03
Net Profit (Loss) after Zakat and Tax 21.3 12 77.5 16.9 26.035
Total Comprehensive Income 16.4 9.4 74.468 13.8 18.84

 All figures are in (Millions) Saudi Arabia, Riyals

Element ListCurrent PeriodSimilar period for previous year
Sales/Revenue 347.2 268.9
Total Profit (Loss) 150.2 93
Profit (Loss) Operational 76.6 28.4
Net Profit (Loss) after Zakat and Tax 38.2 12.6
Total Comprehensive Income 30.2 10.1
Total Share Holders Equity (after deducting minority equity) 1,085.8 1,052.9
Profit (Loss) per Share 0.47 0.15

 All figures are in (Millions) Saudi Arabia, Riyals

Element ListExplanation
Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year Key reasons for the improvement in the Net Profit during the current quarter compared to the same quarter of the previous year, is due to an increase in the profitability of port segment which was mainly driven by higher volumes and improvement in tariffs. Although there was a limited increase in operating expenses and finance charges due to increasing SAIBOR rates and finance charges related to lease liabilities “as per IFRS 16”, the net profit improved further due to better share of results of associate companies and income on Murabaha deposits.
Reason for increase (decrease) in net profit for current quarter compared to the previous quarter Key reasons for the improvement in the Net Profit during the current quarter compared to the previous quarter of the same year mainly due to an increase in volumes handled by the port segment. Net profit further improved due to better share of results of associate companies.
Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year Key reasons for the improvement in the Net Profit during the current period compared to the same period of the previous year, is due to an increase in the profitability of port segment which was mainly driven by higher volumes and improvement in tariffs. Despite limited increase in operating expenses, higher finance charges due to increasing SAIBOR rates and finance charges due to lease liabilities “as per IFRS 16”, the net profit further improved due to share of results of associate companies and income on Murabaha deposits.
Type of the external auditor's opinion Unmodified opinion
Reclassifications in quarter financial result Financial Statements for the current period have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and based on that the presentation, measurement, recognition and disclosure for some of financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.
Additional Information Port Authority has unified the Customs Inspection Charges effective from 1 March 2019 to provide transparency and cost certainty to importers. This will improve the revenue for the port segment for the year 2019 but the financial impact will be dependent on the total container volume handled in the year.

From January 1, 2019, the Company has adopted IFRS 16 (Leases). For further information on the impact of this standard, refer to note number (4) to the interim financial statements for the period ended 31 March 2019.


SISCO Group distributed course completion certificate across our group of company employees participated in 'LEAD - Management Training Program' for more than a year. The participants received several administrative and practical skills to grow together and achieve bright future.

lead


As a part of SISCO CSR activities, SISCO employees distributed 780 Iftar Meal for poor and needy people on this holy month of Ramadan 2019.

 

sisco iftar meal

 

sisco iftar meal

  



Latest Developments on Taif Independent Sewerage Plant Project


أرباح "سيسكو" السعودية تتراجع 40% بالربع الثالث من 2019


أرباح "سيسكو" السعودية تنمو 77% بالربع الثاني 2019


2018/10/29 - An interview on CNBCARABIA with SISCO CEO


2017/12/16 - SISCO Making a Difference - Dive In CSR Activity


2017/07/12 - An interview on CNBCARABIA with SISCO CEO


2015/05/31 - An interview on CNBCARABIA with SISCO CEO



2015/03/15 - An interview on CNBCARABIA with SISCO CEO


2015/03/15 - Jeddah port receives the largest container carrier in the world - Video


2015/01/20 - SISCO CEO Interview with CNBC Arabia