Arab Sea’s operating profit rose 15% in 2017

Nomu-listed Arab Sea Information Systems Co. (Arab Sea) reported a 14.6 percent increase in operating profit and a net loss of SAR 22.5 million in 2017, the company said in a stock market filing.

The company stressed its pursuit of performance improvement and expansion plans to enhance its bottom line.

Its board of directors decided to write off a SAR 37.43 million doubtful accounts receivable owed by a government agency, in compliance with newly-adopted international accounting standards.

"We consider the write-off of that sum beneficial to our future performance," the statement said, adding that the company has filed a lawsuit with relevant bodies to recover that amount.

The disclosure stressed the company's sound financial position -- high liquidity and low gearing, and in turn its ability to pursue future plans.

According to data compiled by Argaam, the Arab Sea incurred a net loss of SAR 22.5 million in 2017 versus a net profit of SAR 5.4 million a year earlier.

Its board of directors decided to dispense a cash dividend of five percent for 2017.