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Raed Al-Idrissi, Acting CEO of SGS
Saudi Ground Services co. (SGS) incurred losses in the fourth quarter of 2020, due to a decline in the number of flights amid the COVID-19 pandemic. This decline had a direct impact on the fourth-quarter revenue that fell by SAR 242 million, when compared to Q4 2019, acting CEO Raed Al-Idrissi told Argaam in a telephone interview.
The drop in earnings would have been steeper if the company failed to launch initiatives that slashed operating expenses by 31%, or SAR 147 million, when compared to 2019.
When compared to the third quarter of 2020, Al-Idrissi said that SGS revenue rose 40% in the last quarter of the year, thanks to the increased number of domestic and international flights. Accordingly, revenue grew by SAR 89 million.
The two-week suspension of international flights in December 2020, due to the new strains of COVID-19, reduced total revenue by nearly 13% in the month.
Elsewhere, Al-Idrissi expects better performance in the first quarter of the year, unless there are negative updates on the COVID-19 crisis, adding: “We’re looking forward to more optimistic news about the full resumption of air traffic.”
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, Argaam reported.
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