Logo of Saudi Ground Services Co.

Saudi Ground Services( SGS) is anticipated to reach the break-even point if flight rates vary in between 80%and 85%, Mohammed Mazi, Executive Vice President of Finance, informed CNBC Arabia.

It is tough to identify when SGS will turn successful, as functional development will depend in the coming duration on the resumption of global flights. SGS operations stood at 70%by the end of September, of which domestic flights represented 95%, while worldwide flights represented 40%.

The operating rates have actually increased by 7%in October and November to 77%, which will have a really favorable effect on the business’s lead to the 4th quarter of the year.

A constant enhancement in SGS flights, operations and cost-cutting efforts assisted narrow losses, Mazi kept in mind, including that the business has actually established efforts to decrease operating expense by 20%in the coming years.

Elsewhere, he included that SGS has actually participated in centers arrangements worth SAR 2 billion with banks, of which SAR 1.250 billion was withdrawn to deal with any emergency situation. The business still has strong monetary solvency, without any requirement to utilize these centers.

Moreover, Mazi stated that SGS had a money balance– money and quantities accepted funds – of SAR 900 million pre-COVID-19 pandemic. This balance reached SAR 200 million by September-end. SGS utilized its operating capital to fund its expenditures; thus, it did not need to utilize those centers.

Replying to a concern about money dividends, Mazi stated it is presently hard to reassess this due to varying operations and being not able to understand the future obstacles, particularly the complete resumption of flights this year.

SGS cut its 9M 2021bottom lines to SAR1533 million from SAR3362 million a year previously.