Saudi Airlines Catering Company posted an 85 per cent plunge in first quarter profit, mainly because of a disruption in business as the government suspended flights in and out of the kingdom to contain the spread of the coronavirus.
Net income for the first three months of the year ending March 31 fell to 15.6 million Saudi riyals (Dh15.3m), compared with 103.5m riyals in the same quarter last year, the company said in a filing to the Saudi Arabian stock exchange, Tadawul, on Wednesday. First quarter revenue declined 13.2 per cent to 452.7m riyals.
"The main reason for the decrease in net profit was the disruption of the business activities," the company said. "Substantially, the suspension of the commercial flights due [to] the implementation of the precautionary measures by the government, in order to overcome the outbreak of the Covid-19, which resulted in lower sales."
The accounts receivable provision increased by 15.3m riyals while fixed costs remained the same, it said.
Saudi Arabia halted all international flights into and out of the kingdom in March and suspended the Umrah pilgrimage as a precautionary measure to curb the spread of the coronavirus. Global airlines have slashed capacity and cut jobs in efforts to preserve cash as the virus dipped air travel demand. While some countries are easing lockdown measures, airline passenger traffic is unlikely to return to pre-crisis levels until 2023, according to the International Air Transport Association.
Saudi Airlines Catering's bottom line results missed the analyst estimates of EFG Hermes by 85 per cent due to a combination of "lower-than-expected" revenue and margins, it said in a note on May 20.
"While we were anticipating a weak set of results, the extent of the revenue and margin pressure is somewhat surprising, given that Covid-19 flight restrictions only started in the last two-to-three weeks of the quarter," EFG Hermes said. It has a neutral rating on the stock.
The company provides catering services in-flight and for airport lounges, retail, private sector companies and government offices.
In March, the company said it will postpone fourth-quarter dividend distribution to shareholders until further notice and after "current conditions are settled" as a "precautionary measure" to preserve liquidity.
The company provides ground handling services such as baggage handling, cargo loading and offloading, fleet services and traffic control services at 27 airports in Saudi Arabia, according to its website.
Saudi Arabia has recorded 59,854 coronavirus cases with a death toll of 329 as of Wednesday, according to Johns Hopkins University, which tracks the spread of the virus globally. There have been 31,634 recoveries as well.
Globally, 4.9 million cases have been recorded while the number of deaths is at 323,413 with 1.69 million recoveries.
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Results
6.30pm: Mazrat Al Ruwayah Group Two (PA) US$55,000 (Dirt) 1,600m; Winner: Rasi, Harry Bentley (jockey), Sulaiman Al Ghunaimi (trainer).
7.05pm: Meydan Trophy (TB) $100,000 (Turf) 1,900m; Winner: Ya Hayati, William Buick, Charlie Appleby.
7.40pm: Handicap (TB) $135,000 (D) 1,200m; Winner: Bochart, Richard Mullen, Satish Seemar.
8.15pm: Balanchine Group Two (TB) $250,000 (T) 1,800m; Winner: Magic Lily, William Buick, Charlie Appleby.
8.50pm: Handicap (TB) $135,000 (T) 1,000m; Winner: Waady, Jim Crowley, Doug Watson.
9.25pm: Firebreak Stakes Group Three (TB) $200,000 (D) 1,600m; Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer.
10pm: Handicap (TB) $175,000 (T) 2,410m; Winner: Eynhallow, Mickael Barzalona, Charlie Appleby.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
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Date started: Founded in May 2017 and operational since April 2018
Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.
Based: Cairo, Egypt
Sector: Health-tech
Size: 22 employees
Funding: Seed funding
Investors: Flat6labs, 500 Falcons, three angel investors
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
THE SPECS
2020 Toyota Corolla Hybrid LE
Engine: 1.8 litre combined with 16-volt electric motors
Transmission: Automatic with manual shifting mode
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Torque: 142Nm
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
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