GASCO to continue revenue growth in Q3: CEO

Abdulrahman bin Sulaiman, CEO of GASCO

National Gas and Industrialization Co.’s (GASCO) CEO expects the company’s revenue to grow year-on-year (YoY) in Q3 2023, and at a rate close to that of the previous two quarters.

In a statement to Argaam, CEO Abdulrahman bin Sulaiman said the total revenue increased by 18% in Q2 2023, backed by higher quantity of gas sold.

Meanwhile, the rise in Q2 net profit was spurred by higher sales volume and lower operating expenses, along with higher revenues from mutual funds and government bonds, said the top official.

He also highlighted the rise in consumption by commercial and industrial clients. Sales rose in line with Hajj season during the period, which boosted the volume of gas sold in the second quarter compared to the same period a year ago, he added.

The increase in cylinder price to SAR 19.85 did not affect demand or the company’s performance, Sulaiman said, adding that GASCO announced in June, following the cylinder price hike, that the price adjustment would not have a material impact on net income over the coming period.

Concerning the memorandum of understanding signed to consider setting up a company in land transport and logistics sector with Bahri, the CEO said that work and study are underway. Opportunities are being assessed for a possible cooperation and any updates will be announced duly, he added.

GASCO earlier posted SAR 127.5 million net profit for H1 2023, a rise of 22% from SAR 104.7 million in H1 2023. Q2 profit amounted to SAR 54.5 million, Argaam reported.