Aldrees Q2 profit buoyed by stronger sales, rise in number of stations: CEO

CEO Abdulilah Saad Aldrees

Abdulilah Saad Aldrees, CEO of Aldrees Petroleum and Transport Services Co. said that the rise in the company's profit in the second quarter of 2022 was driven by the increase in sales from the petroleum and transport segments, as well as the rise in number of stations to 114 and the development of 96 stations.
 

He told Argaam that there are 629 stations and 623,000 customer vehicles that currently operate using WAIE system, adding that the number of vehicles in the transport segment rose to 126, which helped boost profit.
 

The sales volume of the petroleum segment amounted to SAR 5.5 billion, while it reached SAR 190 million for the transport segment. The number of petroleum transport stations reached 698 stations by Q2-end, while the number of trucks reach 1,405, said the CEO.
 

He indicated that the decline in Q2 profit quarter-on-quarter was due to the slower activity of some stations at Ramadan start, as well as to the SAR 6 million losses from investment portfolios, against SAR 7 million profit recorded in the first quarter.
 

The profit decline was also attributed to the decline in wheat cargo transport, due to the fall in number if incoming ships amid the Russia-Ukraine war. This is in addition to the rise in general and administrative expenses due to appointing new staff, especially Saudis, and the increase in some employees’ salaries, Aldrees added. 

The top official expects the company to post better results in the third quarter, compared to the year-ago period. 

Aldrees said that the company paid the full price of a warehouse plot located in Al Sulay district, Riyadh, owned by Saudi Paper’s subsidiary from available cash in the company. 

Aldrees reported a net profit after Zakat and tax of SAR 108.3 million for the first half of 2022, a jump of 44% from SAR 75.3 million in the prior-year period, while Q2 profit amounted to SAR 45.9 million, according to data available to Argaam.