Sulaiman Al Habib official says future projects to be financed through cash flow, loans

A Dr. Sulaiman Al Habib Medical Group (HMG) Hospital

Dr. Sulaiman Al Habib Medical Group's (HMG) chief financial officer, Faisal Al Nassar, said that the group’s future projects will be financed through a combination of cash flows and Shariah-compliant loans.

In a statement to Al-Arabiya TV, Al Nassar said that the size of the group's financial leverage is very good and in line with normal ratios.

The volume of the group’s loans currently stands at SAR 2.5 billion compared to assets of SAR 10 billion and total shareholders’ equity of about SAR 5 billion. The company is able to increase these loans without having an impact on the financial leverage, he added.

The volume of loans represents 50% of shareholders' equity, which is good and in line with listed peers, and all are Shariah-compliant, Al Nassar said.

Commenting on the financial results, the CFO noted that all branches of the group achieved an increase in occupancy rates during Q1 2021. Meanwhile, the increase in inpatients and outpatients contributed to the rise of the hospital sector’s revenue, while the ratios are slowly returning to normal levels for the pre-pandemic period.

“It is difficult to predict future conditions, but if the situation continues to be the same like Q1 2021, we expect positive results to continue,” Al Nassar said.

According to data available in Argaam, Sulaiman Al Habib's profits increased by 29% to SAR 319 million by the end of Q1 2021, compared to SAR 246.6 million achieved during the same period in 2020.