SISCO Holding’s unit extends lease contract in Jeddah Islamic Port

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Riyadh – Kindasa WaterServices, a subsidiary of Sustainable Infrastructure Holding Company (SISCO Holding), has signed a further 10-year extension of its lease with the Saudi Port Authority (Mawani).

Kindasa extended the deal for its desalination plant at Jeddah Islamic Port (JIP) until November 2041, according to a bourse filing.

The extension is expected to lower Kindasa’s annual depreciation charge, which will have a positive impact on its financial statements, further boosting its long-term financial position and growth.

Abdullah Al Tuwariqi, CEO of Kindasa Water Services, commented: “Securing this contract extension is a major accomplishment for Kindasa. It will allow the plant to further expand its capacity to capture the growing water demand in Jeddah Industrial City and Khomra area while ensuring adequate return on our investment.”

“The extended period will also allow the company to explore new technologies that will conserve resources such as power in the long run further contributing to our ESG goals,” Al Tuwariqi continued.

Khalid Suleimani, Group CEO of SISCO, said: “This long-term commitment not only underscores Kindasa’s dedication but also reinforces its role in contributing to the Kingdom's economic growth and sustainability objectives.”

In the first half (H1) of 2024, SISCO Holding shifted to net losses valued at SAR 10.60 million, compared to net profits worth SAR 40.70 million in H1-23.