SAPTCO to record SAR 27 mln rise in depreciation expenses over 6 years

Saudi Public Transport Co. (SAPTCO) announced that the financial impact of its asset treatment under the agreement signed with the government will increase depreciation expenses by about SAR 27 million over the next six years, according to a bourse statement.

This comes in light of the obligation contract signed by the company and the government, which was endorsed by Royal Decree No. (M/48).

In July, 2019, the company received a letter from the Public Transportation Authority (PTA), which included the Cabinet's decision to divide the transport of passenger on buses between the Kingdom's cities.

The decision stipulated the formation of a committee to take the necessary action with respect to addressing the status of the company's asset, in light of the current franchise agreement and the agreement with the company on the interim period, to ensure continuity of service.