24 Hrs
Source:
الاقتصادية
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Saudi Arabia's Sasco turns loss into profit after delayed xAI assessment
Saudi-based SASCO, a company specializing in automotive services, announced that its investment valuation in xAI artificial intelligence company led to a radical change in its financial results for the second quarter of 2026. The company increased its net profit attributable to shareholders to 56.81 million riyals, compared to a prior loss of 5.98 million riyals, adding approximately 62.8 million riyals to its profits. This adjustment followed receipt of a notice from the xAI investment fund regarding the fair value of the investment, prompting the company to reissue its results to reflect the new valuation. Despite a 12.2% growth in sales to 3.23 billion riyals, gross profit declined by 32% to 51.9 million riyals, causing the gross profit margin to decrease to 1.6%. The surge in earnings is largely attributed to the increased value of the investment in xAI, as SASCO allocated $8 million for the investment, while its investment value reached 108.2 million riyals by the end of the first quarter—more than 3.6 times the allocated amount. This highlights that SASCO's profit sensitivity is expected to increase in the future due to non-operational and non-cash valuations related to its investments in emerging tech companies.
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