RIYADH: Saudi Industrial Services Co., known as SISCO, posted a 97.5-percent drop in profit for the first quarter of 2022 as a result of ongoing disruptions in global supply chains, the company said in a press release.
The company said in a statement that its first-quarter profit fell to SR800,000, ($213,333) down from SR32.3 million in the same period a year earlier.
Along with the profit decline, revenue declined by 22.6 percent to SR196.2 million compared to SR253.6 million in the first quarter of last year.
SISCO, which is one of the leading strategic investors in ports and terminals and logistics parks, said the decline in profit and revenue resulted from disruptions in the global supply chain and the resumption of pandemic restrictions in China, which adversely affected gateway and transshipment volumes.
Its revenue and profitability in the water segment were impacted by a temporary decrease in production at the Kindasa facility for two months.
This decrease in production has been resolved, said the company, adding that it expects revenue to return to normal levels for the rest of the year.
“Whilst we are likely to continue to see the impact of this in Q2, we expect supply chain pressure to ease later in the year which will positively impact the ports and logistics segments,” said Mohammed Al-Mudarres, CEO at SISCO, in a press statement.
