Saudi Catering amends contract with Saudi Railways, expects SAR 140 mln revenue

A Saudi Catering truck at the airport

Saudi Airlines Catering Co. signed on April 20 a contract to amend the services charges and the scope of work for a previous agreement with the Saudi Railways Co. to provide food and beverage services on the Al Haramain Express trains.

In a statement to Tadawul, the catering company said the amendment includes adding new businesses, including providing hospitality services to business class passengers on trains and in business class lounges on train stations.

While the contract term is scheduled to end on Dec. 31, 2023, Saudi Catering expects to generate SAR 140 million in revenue over the remaining period of the contract.

A positive impact is expected on Q2 2022 financial results, and it is likely to boost the company’s business sustainability by increasing the cash flow and enhancing its business relationship with customers.

There are no related parties to the contract, the statement noted.

On July 1, 2019, Saudi Catering said it inked a five-year contract with the Saudi Railways at a total value of SAR 85 million, Argaam reported.