Saudi Cable’s Q2 hit by loss from Bahraini subsidiary: CEO

Saudi Cable Co.’s loss in the second quarter can be partly attributed to the loss reported by its Bahraini subsidiary Midal Cables, Saudi Cable chairman Meyassar Nowailati told Al Arabiya TV.

Midal Cables, which is 50-percent owned by Saudi Cable, posted a net loss of $60 million (SAR 225 million), he said.

Saudi Cables is just an investor in the company and is not involved in management or executive decisions, Nowailati added.

The investment in Midal Cables has yielded positive returns over the years, but the current market situation has forced the company to shut down one of the factories and incur losses.

Saudi Cables swung to net loss of SAR 118 million in H1 2018, compared to a net profit of SAR 15.7 million a year earlier.

In a phone call with CNBC Arabia, the chairman said that the company is selling one of its Turkish subsidiaries to secure liquidity needed by the company.

The deal is still in the auditing and due diligence test phase, he added.

Saudi Cable owns several investments in the Turkish market, so the sale is not an exit from Turkey as the company will maintain the ownership of other investments, Nowailati noted.

Last month, Saudi Cable Co. (SCC) signed an agreement to sell its wholly owned Turkish subsidiary, Demirer Kablo, to China’s Jiangsu Zhongtian Technology Co. (ZTT) for SAR 250 million, according to data available on Argaam.