GAS has SAR 2.2B under-development projects, eyes transition to TASI: CEO

Faisal K. AlDabal, CEO of Gas Arabian Services Co.

Gas Arabian Services Co. (GAS) has under-development projects worth SAR 2.2 billion, including projects worth SAR 730 million carried over from 2023 and will be developed over three years, CEO Faisal K. AlDabal told Argaam.

He added that 2023 profit growth was driven by a 30% increase year-on-year (YoY) in demand for receipt and delivery in the commercial department, in addition to a 20% YoY rise in earnings from investment in associates.

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GAS has investments in four local manufacturing companies that provide Saudi products to international partners and four service companies, AlDabal said, noting that these are long-term investments.

Commercial relations and partnerships include exclusive representation and local manufacturing, with some five-year supply agreements.

The supply chain crisis that affected the Chinese economy two years ago contributed to order delays for several customers, the CEO said, indicating that 2023 witnessed a recovery in delivery, which helped boost the commercial supply department.

GAS provides integrated industrial solutions and operates in several sectors, including oil, gas and water desalination. In addition, it has long-term contracts with Saudi Arabian Oil Co. (Saudi Aramco), Saudi Basic Industries Corp. (SABIC) and others in the field of energy and petrochemicals. This enables the firm to work on service projects or supply projects/contracts.

AlDabal added that the company's revenues come from the commercial sector through exclusive relationships for supplying new equipment or spare parts in the long term. Revenues are also delivered by the technical services department, which works on maintenance during laboratory shutdowns, in addition to new awards, such as gas supply projects, control systems, etc.

Regarding the performance in the first half of 2024, he explained that GAS has contracts in the pipeline. He expressed optimism about achieving higher revenues compared to 2023, citing reassuring factors.

The CEO also pointed out that the company is working with Yaqeen Capital as financial advisor on its transition to the main market (TASI).

According to available data on Argaam, the profits of GAS rose by 21% to SAR 81.5 million in 2023, compared to SAR 67.4 million in 2022.

The company's board of directors approved in January transition to the main market.