Saudi Ground Services Co. (SGS) turned to a net loss after Zakat and tax of SAR 454.3 million for 2020, from a net profit of SAR 423.4 million a year earlier.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Revenues | 2,539.76 | 1,251.84 | (50.7 %) |
| Gross Income | 686.50 | (20.70) | (103.0 %) |
| Operating Income | 415.86 | (405.01) | (197.4 %) |
| Net Income | 423.35 | (454.30) | (207.3 %) |
| Average Shares | 188.00 | 188.00 | - |
| EPS (Riyals) | 2.25 | (2.42) | (207.3 %) |
The company attributed the performance to the temporary suspension of domestic and international commercial flights from mid-March 2020, as a result of COVID-19 precautionary measures taken by the government.
The temporary suspension of flights led to a direct impact on the company's operations with a decrease in revenue by 50.7%, to SAR 1.288 billion. The pandemic also indirectly impacted the equity accounted investment in Saudi Amad Airport Services Co., resulting in a loss of SAR 22.3 million in 2020.
Despite the challenges faced by the company in light of the pandemic, SGS executed several initiatives aimed at increasing the efficiency of operation, thus reducing the impact of the pandemic on company’s profitability.
In addition to cost reduction initiatives, the company took certain initiatives such as the opportunity to increase sales by providing disinfection services for aircraft, in addition to other services, which also contributed to reducing the impact of the pandemic on the company's profitability.
| Item | Q4 2019 | Q4 2020 | Change |
|---|---|---|---|
| Revenues | 599.33 | 356.67 | (40.5 %) |
| Gross Income | 127.62 | 12.26 | (90.4 %) |
| Operating Income | 71.23 | (103.27) | (245.0 %) |
| Net Income | 75.17 | (118.09) | (257.1 %) |
| Average Shares | 188.00 | 188.00 | - |
| EPS (Riyals) | 0.40 | (0.63) | (257.1 %) |
| Item | Q3 2020 | Q4 2020 | Change |
|---|---|---|---|
| Revenues | 267.90 | 356.67 | 33.1 % |
| Gross Income | (10.22) | 12.26 | 219.9 % |
| Operating Income | (97.02) | (103.27) | (6.4 %) |
| Net Income | (86.79) | (118.09) | (36.1 %) |
| Average Shares | 188.00 | 188.00 | - |
| EPS (Riyals) | (0.46) | (0.63) | (36.1 %) |
In Q4 2020, the company reported a net loss after Zakat and tax of SAR 118.1 million.
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