Riyadh – Mubasher: The financial statements of Saudi Ground Services Company (SGS) showed a turn to losses during the first quarter (Q1) of 2020 at SAR 51.5 million, against net profits of SAR 104.1 million in the corresponding quarter a year earlier.
Year-on-year (YoY), the company’s revenues slipped by 15.9% to record SAR 512.1 million over the period from January to March this year, compared with SAR 609 million, according to a statement to the Saudi Stock Exchange (Tadawul) on Sunday.
The move to losses is primarily attributed to the suspension of international and domestic flights due to the precautionary measures adopted by the government against the coronavirus (COVID-19) pandemic.
The global crisis has affected impairment loss on trade receivables to increase by SAR 47 million. In addition, it indirectly affected the company’s investments, resulting in unrealized net loss on fair value through profit or loss (FVTPL) investment of SAR 18.6 million in Q1-20, alongside other losses of SAR 16.2 million.
In spite of the prevailing challenges, the company managed to reduce operating and administrative expenses by SAR 24.4 million and SAR 5 million, respectively.
During its meeting, the general assembly approved not to distribute any dividends to shareholders for the second half (H2) of 2019 to support the company’s financial position and cash liquidity, according to another bourse statement.
