Saudi Ground Services Company posts solid revenue growth

The Saudi Ground Services Company (SGS), which provides aviation ground handling services and logistics to many local and international airlines across 27 airports in Saudi Arabia, has announced that its revenues grew by 7.3 percent to SR2.726 billion last year.
The company’s operating profits rose by 11.58 percent to SR703 million. The net profit reached SR685 million and the total shareholders’ equity reached SR3.049 million — SR3.65 per share. An initial public offering in 2015 sold 56.4 million shares, representing 30 percent of the company’s capital.
Abdullah bin Ibrahim Al-Howaish, chairman of the board of directors of SGS, said: “The year 2016 is considered as one of the most important stages for the company due to the strategic decisions issued by the board.”
In 2016, the company launched a project to develop its departments and sections and rebuild its organizational structure in collaboration with top international consulting companies working in the field of aviation. The aim was to achieve the desired targets and boost the shareholders’ confidence. The board worked closely with the executive administration to achieve these goals.”
Al-Howaish added that last year’s financial results reflected the company’s ability to adapt with the economic and regulatory changes.
He pointed out that the company’s revenues grew by 7.3 percent in 2016 despite rising competition, regulatory challenges and the impact of lower oil prices on global economy.
He said: “The 11.8 increase in the operating profit is an indication of the continued growth in the services offered at all airports in Saudi Arabia, the continuous attention to staff development and the comprehensive transformation of their culture in line with the current stage of changes that focus on human resources and information technology, to provide the best in a working environment encouraging development and production according to modern methods.”
Qaid bin Khalaf Al-Otaibi, CEO of Saudi Ground Services, said: “The company’s commitment to achieving its long-term strategies has had a significant role in improving its operational performance last year. In 2016, the company provided aviation ground services to 667,285 trips at the Kingdom’s airports, thus achieving a growth rate of 8 percent compared to 2015.”
The number of passengers, who have been served in all airports in Saudi Arabia, reached 87,946,301, with a growth increased by 8.21 percent.”
Al-Otaibi said: “We are honored as well to contribute effectively to the service of the pilgrims.”
Al-Otaibi added: “The human element in the SGS is the key to its success and growth. The company is keen to strengthen the human resources and support the staff with the distinguished expertise of the people of our precious country, which contributed to the development of performance of departments and it’s results in 2016.”
The Saudi Ground Services Company seeks to provide high-quality services to its customers and maintain its leading position in the provision of ground services to Saudi Arabia’s aviation sector to achieve the highest levels of safety, quality, efficiency, profit growth and to provide added value to shareholders.

Source: Arab News