SISCO likely to report better results in H2, says CEO

Saudi Industrial Services Co. (SISCO) is expected to report improved results in the second half of 2017, chief executive Mohammed Al-Mudarres told CNBC Arabiya in a phone call.

The company will pursue its expansion strategy, Al-Mudarres said, adding that existing projects are ongoing.

SISCO recently approved increasing capital by 20 percent to SAR 816 million from SAR 680 million through the issue of one bonus share for every five shares held.

The capital hike is aimed at aligning the company's capital to its assets level and to finance expansions.

SISCO, which operates Saudi Arabia’s Red Sea Gateway Terminal, reported a net profit of SAR 22.1 million for Q1 2017, an 8.7 percent decline year-on-year on lower revenue from the water desalination and distribution segment and higher provisions for slow-moving inventory.

Revenue from the ports sector is expected to remain volatile in 2017 due to lower demand for imports amid a global trade slowdown, according to the company’s annual board report for 2016.