https://arab.news/7n6pt
RIYADH: Road connectivity is set to improve in the Saudi cities of Jazan, Sabya and Abu Arish after a SR93 million ($24 million) contract was awarded to the Saudi Public Transport Co. to operate the network in the province.
In a filing to the Saudi Stock Exchange on Tuesday, SAPTCO said the five-year project includes operating the new network and is projected to positively impact the firm’s revenues during the second quarter of 2023.
The contract was awarded by the Jazan regional municipality.
The development comes after the company launched a public bus transport project in Dammam and Qatif.
The Dammam transport project, also a five-year contract, is valued at SR149.6 million and serves a network of different lines in Dammam, Alkhobar, Dhahran and Qatif.
Last month, the company signed a five-year transportation contract worth SR115 million with Qassim municipality to operate a public bus transport network in Buraydah and Unaizah governorates.
In September 2022, Taif municipality awarded the transporter a SR88 million bus project.
The company’s improving order book was reflected in its results when it narrowed its net losses after zakat and tax to SR90.9 million in 2022, from SR216.2 million a year earlier.
The company attributed the decline in net losses to higher revenue, incremental other income, the lower loss recognized on joint venture investments, and a decrease in zakat and tax expenses.
SAPTCO revenues for 2022 surged 37.4 percent to SR1.32 billion from SR960 million in 2021.
In the fourth quarter of 2022, net losses after zakat and tax narrowed by 40.3 percent to SR93.3 million, from SR66.51 million in the same period a year earlier.
Founded in 1979, SAPTCO operates urban buses in Riyadh, Jeddah and Makkah.
It also runs buses to the UAE, Egypt, Jordan, and Bahrain.