EIC expects revenues to decline by SAR 78 mln due to precautionary measures

Electrical Industries Co. (EIC) said the government’s precautionary measures to curb the spread of coronavirus had affected the company’s business.

Therefore, the company expects a SAR 78 million drop in revenues in the second quarter of 2020, it said in a bourse filing on Thursday.

The precautionary measures delayed supply of raw materials from within and outside the Kingdom, in addition to closing down of 2 factories in Dammam Industrial City II for 1 month.

The closures even affected the production at the company’s factories due to the delay in obtaining necessary permits for work during the curfew.

The company said exports had been impacted and there have been delays in getting customers’ approvals to examine products and carry out work-related purchase orders.

Furthermore, the temporary shutdown of project sites impacted the supply of products and services.

Accordingly, the company took several decisions to mitigate the impact of precautionary measures, including finding alternatives raw material suppliers and increasing production in factories that were closed to compensate for the shortage during curfews. Additionally, project sites that are not affected by the pandemic are given priority.

It is difficult to determine the estimated financial impact of the government’s preventative measures, as it depends on the readiness of the project sites and the possibility of delaying them, the company noted.