SGS publishes its half year results

“SGS is resilient but not immune to the impact of this pandemic”, the tank inspection company said in its half year results. “The dynamism and responsiveness demonstrated by our employees in such a challenging operating environment has driven a resilient performance in H1 2020. Our focus has been on employee safety, customer service continuity, pioneering new services, continued investment in high growth potential markets and financial discipline.”

It said the way society has adapted by rising to the challenges it has faced over the past four months has been impressive. “Many of these changes will endure, which makes the role of the TIC industry and SGS’s commitment to enabling a better, safer and more interconnected world even more relevant”, said CEO Frankie Ng.

Considerable additional measures have been rapidly put in place by its risk management, operational integrity and human resources teams to ensure employee safety, some of which have been tailored into its service offering

Revenue reached CHF 2.6 billion, down by 20.7% (-14.9%) notably driven by the disposal of the Petroleum Service Corporation in 2019. Organic Revenue declined by 10.4%, impacted by the pandemic.

Operating Income decreased from CHF 636 million in prior year to CHF 302 million in 2020 mainly driven by the exceptional gain of CHF 264 million on the disposal of the PSC business in 2019 and by the pandemic in 2020.

Adjusted Operating Income decreased from CHF 489 million in prior year to CHF 330 million in 2020, a decrease of 32.5% (-26.8%).

Profit Attributable to Equity Holders decreased from CHF 377 million in prior year to CHF 171 million in 2020, a decrease of 54.6% compares to last year.

Free Cash Flow increased significantly by 43.5% from CHF 216 million in prior year to CHF 310 million in 2020 driven by a strong working capital management.

For more information visit www.sgs.com

29th July 2020