Saudi Industrial Services Co. announces its Interim Financial Results for the Period Ending on 2022-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	243.4	252.1	-3.45	212.6	14.49
Gross Profit (Loss)	99.7	123.6	-19.34	90.2	10.53
Operational Profit (Loss)	52.7	83.6	-36.96	46.4	13.58
Net Profit (Loss) after Zakat and Tax	3.1	22.5	-86.22	0.8	287.5
Total Comprehensive Income	4.5	25.2	-82.14	1.6	181.25
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	456	510.4	-10.66
Gross Profit (Loss)	189.9	258.4	-26.51
Operational Profit (Loss)	99.2	178.3	-44.36
Net Profit (Loss) after Zakat and Tax	3.9	54.7	-92.87
Total Comprehensive Income	6	57.1	-89.49
Total Share Holders Equity (after Deducting Minority Equity)	1,459	1,166	25.13
Profit (Loss) per Share	0.05	0.67
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net profit during the current quarter compared to the same quarter of the previous year is due to the following reasons:

- Continuing impact of global supply chain disruptions, affecting gateway and transshipment volumes in the Ports segment.

- Consequently, gross profit for the period declined to SAR 99.7 million in Q2 2022, from SAR 123.6 million in the same quarter last year, market challenges in the global port and logistics sectors impacted margins during the quarter.

- Despite improvement in the results from associate companies, reported net income for the quarter was SAR 3.1 million compared to SAR 22.5 million for the same quarter last year due to lower revenues.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The increase in net profit for the current quarter as compared to the previous quarter is due to the following reasons:

- The current quarter (Q2 2022) witnessed recovery of gateway and transshipment volumes in the Ports segment. On the other hand, Water solutions’ segment performance saw a strong recovery compared to the previous quarter (Q1 2022) where the Company reported a decline in revenue and gross profit due to a decrease in the production at the Kindasa plant which impacted revenues and profitability.

- Improvement in the results from associate companies.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Reported net income for the period was SAR 3.9 million compared to SAR 54.7 million for the same period last year, due to a decline in ports revenues and gross margins as a result of continued pressure on gateway volumes coupled with a decline in water segment revenues and gross margins during the first quarter.Statement of the type of external auditor's report Unmodified conclusionReclassification 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 the financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom.Additional Information In accordance with IFRIC 12 (IFRS Interpretations Committee) 12, reported revenue includes construction revenue of SAR 30.3 million. There is no impact on gross profit or net profit as there is a corresponding construction cost of SAR 30.3 million recognized in the cost of revenue.

Outlook and strategy:

SISCO remains committed to the delivery of its five-year strategy to drive long-term value creation, aiming to double revenues to SAR 2 billion by 2025. SISCO’s investment approach focuses on value accretive investments that are in line with its strategic focus areas of ports, logistics and water. SISCO will announce updates to the market as other opportunities materialize.

Management believes that improved gateway and transshipment volumes are showing promising signs of recovery, which will be supportive to the local gateway market, benefitting from the expected increase in shipping line capacity.Attached Documents

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