Sahel Regional Transport Company (STS) Reports Significant Financial Deterioration in 2021

The Sahel Regional Transport Company (STS), one of 14 regional transport companies under the supervision of the Ministry of Transport, has released its financial statements for the 2021 fiscal year. The company recorded a net loss of -11.322 million Tunisian Dinars (MDT), more than double the -5.999 MDT loss reported in the previous year. This decline in performance occurred against a backdrop heavily impacted by the repercussions of the Covid-19 pandemic, particularly lockdowns and bans on intercity travel.

Financial Overview

Public subsidies played a crucial buffering role, totaling 50.596 MDT. Revenue generated from operations rose to 25.362 MDT, marking a 12.3% increase compared to 2020. This growth was driven by a ticket price hike implemented in June 2021 and a gradual recovery in activity levels.

However, total operating income decreased by 4.1% to 78.347 MDT. Operating expenses reached 87.631 MDT, of which 48.829 MDT were allocated to personnel costs.

Critical Balance Sheet Position

The company’s equity stands at a deeply negative -59.807 MDT as of December 31, 2021. This critical financial situation triggers the legal provisions of Article 338 of the Commercial Companies Code, requiring an Extraordinary General Meeting to decide whether to continue or cease operations.

Significant liabilities include:

Supplier debts and related accounts: Approximately 33.789 MDT
Current liabilities: Around 58.700 MDT, which notably includes over 15.272 MDT in arrears owed to the National Social Security Fund (Caisse nationale de sécurité sociale)

Outlook and Strategic Challenges

Information regarding the company’s financial performance in the five years following 2021 is currently unavailable. It is likely that continued state subsidies have kept the transport company operational.

While fleet modernization is underway—expected to boost future revenues—a recapitalization is imperative. This financial restructuring is essential for STS to effectively fulfill its role in one of the country’s most industrialized regions.