Aldrees Q1 profit fueled by stronger petroleum, transport sales: CEO

Abdulilah Aldrees, CEO of Aldrees Petroleum and Transport Services Co.

Abdulilah Aldrees, CEO of Aldrees Petroleum and Transport Services Co., said the rise in the company's profit in the first quarter of 2024 was driven by the increase in sales of the petroleum and transport segments. 

He told Argaam that the first-quarter net profit was also driven by higher revenues from bank deposits and investment in Sukuk. This is besides the improved investment results in the joint venture, despite the decline in other revenues and the increase in selling and marketing expenses, general and administrative expenses, financing costs and Zakat expenses. 

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He stated that sales of the petroleum segment amounted to SAR 4.23 billion in Q1 2024, while sales of the transport segment reached SAR 122.6 million, bringing the company’s total sales for the quarter to about SAR 4.35 billion. 

The number of Aldrees' stations reached 897 by the end of Q1 2024, while the number of trucks reached 1,578, including 542 trucks designated for transporting petroleum, according to the top executive.  

As for competition in the stations segment, Aldrees said the company has strategic plans it seeks to achieve, pointing out that competition improves the services provided to consumers. The company aspires to continue at the same level and maintain its leadership in the field of petroleum services. 

He added that the company's performance in Q2 2024 will be based on the estimated budget. 

Aldrees made a net profit of SAR 77.4 million in Q1 2024, up 10% from SAR 70.5 million in the prior-year period, according to Argaam's data.