Saudi Ground Services Co. (SGS) expects a deeper impact of the COVID-19 fallout on H1 2020 financial results due to travel ban, CEO Fahd Cynndy told Argaam in an exclusive.
However, SGS’ financial results are likely to recover in the second half of this year, buoyed by the resumption of flights in the Kingdom, Cynndy added.
Since the emergence of the COVID-19 crisis, SGS aimed to ensure the efficiency of operating and capital spending to maintain sustainable operations and fulfil its obligations. Accordingly, the company allocated SAR 47 million in provisions.
Despite the challenges faced by the market amid the COVID-19 outbreak, SGS boosted its market share to 96% in 2020 from 92%, underpinning its persistent efforts to be a leading ground handling services provider.
SGS aims to improve its services and enhance its position in the ground handling services field, the CEO explained, adding that the company seeks to turn into an integrated solutions provider in the field of airport management and ground handling services.
Moreover, the company relies on a balanced operational policy, which will reflect positively on its development projects, to realize Vision 2030 in the logistics sector through expansion in the aviation sector, and other core activities.
Replying to a question about cash dividends, Cynndy said that the COVID-19 pandemic has a significant impact on global economy. The aviation sector was among the most affected sectors. Accordingly, SGS aimed to develop a balanced cash policy to ensure sustainable operations and alleviate the negative impact on its shareholders.
“Amid the current uncertainty, SGS will continue reviewing its cash policy until the beleagured sector returns to normal,” he concluded.
SGS incurred a net loss after Zakat of SAR 51.1 million for the first quarter of 2020, against a net profit of SAR 104.1 million in the same period a year earlier
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