Saudi Industrial Services Co. announces its Interim Financial Results for the Period Ending on 2020-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	167.29	166.5	0.474	156.52	6.88
Gross Profit (Loss)	53.17	72.7	-26.863	39.92	33.191
Operational Profit (Loss)	13.41	33.3	-59.729	1.87	617.112
Net Profit (Loss) after Zakat and Tax	26.6	16.9	57.396	5.94	347.811
Total Comprehensive Income	23.1	13.8	67.391	0.18	12,733.333
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	1,114.19	1,102	1.106
Profit (Loss) per Share	0.33	0.21
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to	The main reason for the improvement in net profit during the current quarter compared to the same quarter of previous year is due to the following reasons:

- an IFRS 9 gain of SAR 32 million recognised due to the extension of port segment's existing ijara facility.

- an increase in other income of SAR 5.8 million.

The net profit was achieved despite the following:

- a decrease in gross profit due to an increase in cost of revenue during Q1 2020 by SAR 20.3 million compared to Q1 2019 mainly due to the increase in the port segment cost of revenue as a result of an increase in “MAWANI” share and an increase in direct employee costs which is related to the takeover of NCT terminal resulting in decline in gross profit by 11.8% compared to Q1 2019.

- an increase in finance charges (due to IFRS 16) and a marginal decline in investment income in total amounting to a negative impact SAR 2.6 million compared to Q1 2019.Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Increase in net profit for the current quarter as compared to the previous quarter mainly due to the following:

- an increase in revenue of SAR 10.8 million mainly due to the port segment and logistics segment.

- an IFRS 9 gain of SAR 32 million (parent's share of SAR 19.3 million) recognised due to the extension of the port segment's ijara facility.

- an increase in other income of SAR 2 million.

- The net income was achieved despite an increase in administrative expenses, finance costs (due to IFRS 16), a decrease in share of results of associates and an increase in zakat liability of SAR 11.9 million.Basis of the External Auditor's Opinion Unmodified opinionReclassification of Comparison Items Financial Statements for the current period have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and based on that the presentation, measurement, recognition and disclosure for some of financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.Additional Information Despite the current circumstances regarding Corona pandemic, the company's results for the first quarter were not significantly affected compared with the general market situation. Whereas, the company business is related to global, regional, and local economy, the impact of the Corona pandemic may affect the company’s operational performance in the coming quarters in 2020. The company will take appropriate measures to control this impact, which includes the following (but not limited to):

•Defer noncritical capital expenditure

•Freeze hire of new employees

•Stop all increases in salaries and allowances

•Actively monitor and manage receivables.

•Engagement with financial institutions for deferral of loan repayments where needed.

Any updates will be announced in due time.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.