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Zawya
15-05-2025
- Business
- Zawya
Saudi: SAL logs $40.8mln profits in Q1-25; dividends unveiled
Riyadh – Saudi Logistics Services Company (SAL) reported 26.55% year-on-year (YoY) lower net profits at SAR 153.09 million in the first quarter (Q1) of 2025, compared to SAR 208.44 million. The revenues dropped by 15.13% year-on-year (YoY) to SAR 384.05 million as of 31 March 2025 from SAR 452.52 million, according to the financial results. Earnings per share (EPS) stood at SAR 1.91 in Q1-25, versus SAR 2.61 a year earlier. Quarterly, the Q1-25 net profits increased by 7.78% from SAR 142.03 million in Q4-24, while the revenues declined by 6.02% from SAR 408.69 million. In the 12-month period that ended on 31 December 2024, SAL registered 29.77% YoY higher net profits at SAR 3.32 billion. Omar bin Talal Hariri, CEO of SAL, commented: 'Although a decline in volumes compared to an exceptional period last year, we maintained our operational discipline and our leading position in cargo handling, which enabled the division to continue being a key contributor to profitability, supported by stable operations and our customers' trust in our services.' 'We look ahead with optimism to the next phase of our growth strategy through the SAL Logistics Zone project in Falcon City, Riyadh, with an investment of SAR 4 billion,' the CEO added. He noted: 'This project represents a strategic transformation that will boost the division's growth, aligns with the Vision 2030 objectives, and positions SAL ideally to seize the tremendous opportunities offered by the growing logistics sector in the Kingdom.' Cash Dividends The board members announced cash dividends valued at SAR 114.40 million to 80 million eligible shares for Q1-25. The company will pay out a dividend of SAR 1.43 per share, representing 14.30% of the share nominal value. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
Zawya
14-05-2025
- Business
- Zawya
SAL achieves SAR153mln net profit in Q1 2025 and advances logistics growth strategy
SAL Saudi Logistics Services Company ('SAL' or 'the Company') (Ticker: TADAWUL 4263), Saudi Arabia's leading cargo handling player and logistics solutions provider, today announced its financial results for the three-month period ended 31 March 2025. Highlights for Q1 2025 SAL delivered a strong performance with stable margins, during a year with lower cargo volumes, mainly driven by volume normalization compared to last year's exceptional peak, and changes in product mix. The Handling division continues to play a pivotal role in revenue contribution, further supported by growing e-commerce demand. In the Logistics division, SAL has proactively strengthened its business, including prudent credit risk provisioning and introducing more capacity in fulfillment operations. Further to this, we launched the SAL Logistics Zone in northern Riyadh, investing SAR 4 billion which aligns both our growth strategy for the Division and the goals of Vision 2030. The Company affirmed its commitment to distributing dividends to shareholders, with the Board of Directors recommending a distribution of SAR 114.4 million for the first quarter. Omar bin Talal Hariri, Chief Executive Officer of SAL, commented: 'The results of the first quarter of 2025 reflect the strength, resilience, and efficiency of our operations, as we navigate a gradual return to stabilized indicators. Although a decline in volumes compared to an exceptional period last year, we maintained our operational discipline and our leading position in cargo handling, which enabled the division to continue being a key contributor to profitability, supported by stable operations and our customers' trust in our services. We continue to work on enhancing performance in the logistics division, focusing on growth and increasing market share, with full confidence in the division's long-term potential. We look ahead with optimism to the next phase of our growth strategy through the SAL Logistics Zone project in Falcon City, Riyadh, with an investment of SAR 4 billion. This project represents a strategic transformation that will boost the division's growth, aligns with the Vision 2030 objectives, and positions SAL ideally to seize the tremendous opportunities offered by the growing logistics sector in the Kingdom. As we continue to strengthen our core capabilities, we remain committed to investing in sustainable growth while maintaining our focus on delivering long-term value to our customers and shareholders.' Haydar Ucar, Chief Financial Officer of SAL, commented: 'SAL delivered resilient financial results in the first quarter of 2025, preserving profit margins, managing costs, and managing a healthy balance sheet, in spite of slightly lower volumes compared to last year's uncharacteristic spike. We maintained a healthy EBIT margin, preserved liquidity, and continued to generate positive cashflows. Our proactive financial management, including our investment strategy and working capital optimization, has reinforced the Company's resilience. As we look ahead, we are focused on driving operational efficiency, supporting strategic expansion initiatives, and maintaining a strong foundation for sustainable growth and generating more value for our shareholders.' Revenue and Profitability SAL delivered strong financial performance in Q1 2025, reflecting the resilience of its core business and disciplined cost management, in spite of a relative decline in shipment volumes compared to the same period last year. Revenue for Q1 2025 totalled of SAR 384 million, compared to SAR 453 million in Q1 2024, representing a year-on-year decrease of 15%. The decline was due to a reduction of 6% in shipment volumes and seasonality differences impacting the Company's product mix. However, the rapid and continuing growth in e-commerce demand helped mitigate the impact. Profit for the period Q1 2025 SAR Million Q1 2024 SAR Million Variance Q4 2024 SAR Million Variance Revenue 384 453 -15% 409 -6% Operating Profit (EBIT) 165 228 -28% 155 6% Operating Margin % 43.0% 50.3% -7.4pp 37.9% 5.1pp Profit for the period 153 208 -27% 142 8% EPS 1.91 2.61 -27% 1.78 8% Operating profit (EBIT) stood at SAR 165 million, compared to SAR 228 million in the same period last year, resulting in an operating profit margin of 43.0%, down from 50.3% a year earlier. The decline was primarily attributed to lower handling volumes as well as a one-off provisioning for accounts receivable, implemented as part of a proactive approach to credit risk management. Despite the drop, the operating profit margin improved on a quarterly basis from 37.9% in Q4 2024 to 43.0% in Q1 2025, supported by enhanced operational efficiency, as well as accounting for temporary credit provisioning and positive one-offs. Net profit for the quarter reached SAR 153 million, compared to SAR 208 million in Q1 2024 and SAR 142 million in Q4 2024. Earnings per share (EPS) stood at SAR 1.91, compared to SAR 2.61 in the same period last year and SAR 1.78 in the previous quarter. This reflects the strength of SAL's core business and the resilience of its performance while experiencing market fluctuations. Cash Flow and Balance Sheet SAL preserved a strong cash position and further strengthened its balance sheet, supported by continued robust liquidity through disciplined cash flow management. Operating cash flow amounted to SAR 39 million in the first quarter of 2025, compared to SAR 158 million in the prior-year period. Adjusted free cash flow was SAR 25 million, down from SAR 127 million a year earlier. Capital expenditure (CAPEX) decreased to SAR 15 million from SAR 31 million, with investments primarily focused on design and planning activities for the Company's long-term strategic projects. Balance Sheet Q1 2025 SAR Million Q1 2024 SAR Million Variance Net Working Capital 329 273 20% Property and Equipment 725 724 0% Right-of-Use Assets 532 887 -40% Intangible Assets 11 13 -20% Total Assets 3,186 3,354 -5% Total Equity 1,449 1,322 10% Total Liabilities 1,737 2,033 -15% Cash Flow Q1 2025 SAR Million Q1 2024 SAR Million Variance Net Cash Generated from Operations 39 158 -75% Capital Expenditures (CAPEX) 15 31 -52% Adjusted Free Cash Flow 25 127 -81% Dividends paid 106 121 -12% Net debt improved by 13% year-over-year, reaching SAR -662 million, compared to SAR -586 million in Q1 2024, reinforcing the Company's ability to grow with agility. Additionally, shareholders' equity increased by 10%, while liabilities decreased by 15%. Net working capital rose to SAR -329 million, marking a 20% increase year-over-year, driven by a reduction in short-term liabilities - particularly the settlement of annual lease payments. These improvements reflect a sustainable approach to working capital management, enhanced cash collection cycles, and support for long-term growth. Over the past five quarters, SAL has demonstrated gradual and disciplined improvement in net working capital, reflecting ongoing advancements in operational efficiency and strategic balance sheet management. Dividend Announcement SAL's Board of Directors recommended an ordinary cash dividend of SAR 114.4 million for the first quarter of 2025, subject to approval by the General Assembly. This equates to SAR 1.43 per share, compared to SAR 1.76 per share in Q1 2024. The recommendation reflects the Company's ongoing commitment to enhancing shareholder value. Earnings Call An earnings call will be held to discuss the financial results with analysts and investors at 3:30 PM (KSA) on May 20, 2025. Interested investors are encouraged to contact the Investor Relations department for participation details. About SAL Saudi Logistics Services Co. SAL Saudi Logistics Services Co. (Ticker: TADAWUL 4263) is the leading logistics services provider in Saudi Arabia, specializing in air cargo handling, ground handling, and logistics solutions. With operations spanning key airports and logistics hubs across the Kingdom, SAL plays a crucial role in facilitating trade and connectivity in the region. The Company is committed to innovation, operational excellence, and sustainable business practices, ensuring seamless and efficient logistics services to airlines, freight forwarders, and other industry stakeholders. SAL continues to expand its network and enhance its service offerings, reinforcing its position as a key enabler of Saudi Arabia's Vision 2030 logistics ambitions.
Arab News
29-03-2025
- Business
- Arab News
Saudi maritime industry spurring global trade shift
JEDDAH: Saudi Arabia's investment in its maritime sector could see a shift in global trade logistics that helps reduce reliance on traditional routes, leading industry figures have told Arab News. With its strategic location at the crossroads of global trade, the Kingdom is positioning itself as an international logistics hub, enhancing its maritime infrastructure and embracing sustainability. This drive is a key part of Saudi Arabia's economic diversification initiative under Vision 2030, which seeks to reduce the Kingdom's reliance on oil revenues. In August, Omar Hariri, president of the Saudi Ports Authority, revealed that investments in the Kingdom's maritime sector have exceeded SR25 billion ($6.66 billion) thanks to successful collaborations between his organization and private sector partners. Hariri said that significant investments have been made over the past four years through partnerships with both national and international companies. Speaking to Arab News, Pierroberto Folgiero, CEO of Fincantieri, one of the world's largest shipbuilding companies, highlighted how Saudi Arabia's investment in maritime infrastructure is influencing the future of global trade routes. 'By expanding its shipbuilding capacity and enhancing its logistics infrastructure, the Kingdom can address global supply chain bottlenecks, strengthen its maritime influence, and foster resilience in international trade flows,' he said. Folgiero noted that Saudi investments in advanced maritime infrastructure could create alternative trade routes, reducing reliance on chokepoints like the Suez Canal, adding that his company sees this as an opportunity to apply its shipbuilding and maritime technology expertise. 'Investments in shipbuilding, ports, logistics, and shipping services have allowed the Kingdom to capitalize on its geographic advantages. Notable projects include the development of the King Salman International Maritime Industries Complex in Ras Al-Khair, set to become one of the world's largest shipyards, and modernizing key ports such as the Jeddah Islamic Port and King Abdulaziz Port,' he said. The CEO added that Saudi Arabia is also advancing its shipbuilding and maritime technology through strategic partnerships with global industry leaders. We are leveraging the adoption of digitization, automation, and AI-driven solutions to optimize port operations and streamline the logistics chain. Poul Hestbaek, Folk Maritime CEO 'These collaborations focus on transferring expertise and technology, accelerating the Kingdom's evolution into an influential player in the international maritime and shipping sectors,' he said. He pointed out that Saudi Arabia's focus on smart ports, using automation, IoT, and AI, is central to its maritime strategy. These technologies will streamline trade, improve turnaround times, reduce costs, and boost transparency, making the Kingdom an attractive hub for global shipping and logistics companies. In May, Fincantieri launched Fincantieri Arabia, a subsidiary with a focus on shipbuilding, maritime equipment and systems, and naval logistic support services, including training and simulation. Folgiero said this expansion will contribute to localizing technology, creating jobs, and boosting Saudi Arabia's global maritime presence. National developments It is not just established international companies that will benefit from Saudi Arabia's growing maritime sector. In 2024, the Public Investment Fund-backed Folk Maritime was launched, initially operating two routes, but that number has since doubled. Poul Hestbaek, the former CEO of Hamburg Sud, has been tasked to lead the company. Speaking to Arab News, he highlighted the Saudi government's proactive steps to adapt its regulatory framework and attract global investors to the industry, noting that his company is fully aligned with these efforts to drive innovation in maritime trade. 'As Saudi Arabia modernizes its regulatory framework, we are leveraging the adoption of digitization, automation, and AI-driven solutions to optimize port operations and streamline the logistics chain. This transformation is enhancing Saudi Arabia's position as an attractive destination for international investors,' he said. Hestbaek said that his company is playing a vital role in this transformation, particularly through its expanding fleet and direct liner services along strategic routes, including those connecting India to the Red Sea and the Gulf. He also highlighted Folk Maritime's role in improving cargo efficiency across key trade routes, including the Red Sea and the Gulf. 'As we increase regional shipping capabilities and expand our fleet, key economic indicators to watch include the growth in port throughput, the development of new shipping routes, and the rise in non-oil exports,' said the CEO. Sustainable maritime operations Achieving growth in the sector is not the only goal for Saudi Arabia. As Hestbaek emphasized, expansion has to be done in a sustainable manner. Explaining how sustainability is at the core of his company's operations, he said: 'We are aligned with Saudi Arabia's net zero carbon by 2060 goals, incorporating advanced green technologies into our fleet, using energy-efficient technologies to reduce emissions and optimize fuel consumption.' Hestbaek noted the Folk Maritime's commitment to decarbonization by adhering to international standards, prioritizing International Maritime Organization regulations, adopting alternative fuels, and replacing older vessels with eco-friendly ones like the M/V Folk Jeddah. The company also recently purchased 5,600 recyclable containers. Ensuring secure, resilient operations As the Houthi-led attacks in the Red Sea have demonstrated, security is an ever-present concern for the maritime industry. Hestbaek highlighted Saudi Arabia's multi-faceted approach to ensuring secure shipping lanes, addressing both physical and cyberthreats. 'The Kingdom works closely with international and regional partners to counter piracy and maintain secure sea routes in the Arabian Gulf, Red Sea, and beyond. Saudi Arabia has invested in state-of-the-art naval and coast guard assets, as well as enhancing port security to safeguard ships and cargo,' he said. The CEO added that his company has a strategy to safeguard operations and collaborates with local and international authorities, adding that cybersecurity is a top priority for both Saudi Arabia and Folk Maritime. 'We are committed to safeguarding our fleet and digital infrastructure from emerging cyberthreats, implementing cybersecurity measures, such as secure communication channels, real-time monitoring systems, and advanced protocols for data protection and cargo tracking,' he said. Maritime tourism The maritime industry is more than just transferring goods from port to port. As Fincantieri's Folgiero said, Saudi giga-projects such as NEOM and the Red Sea are transforming the Kingdom's cruise ship industry, aligning with Vision 2030's goal of making Saudi Arabia an international tourism hub. 'Futuristic cities like The Line and Sindalah Island, alongside the eco-tourism focus of the Red Sea Project, offer bespoke and sustainable experiences that cater to the high-end travel market, sharpening Saudi Arabia's competitive edge in the global tourism landscape,' he said. Ensuring the Kingdom capitalizes on this, the PIF-backed Cruise Saudi was created in 2021, with an aim to attract 1.3 million passengers annually by 2035. It also plans to generate 50,000 direct and indirect jobs in the cruise sector by 2035. Cruise Saudi's first ship, Aroya, which features 19 decks, 1,678 cabins and suites, and can accommodate up to 3,362 passengers, was launched in December at Jeddah Islamic Port.
