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Saudi Automotive Services Co. (SASCO) should see a boost in operating profit over the next quarter as it pushes ahead with its plans to franchise fuel stations in Saudi Arabia, the company’s general manager Riyad Bin Saleh Al Malik, told CNBC Arabia.
He said the firm is set to receive franchise applications to operate new stations under the brands of SASCO and Nakhla.
The company’s fuel station division is said to account for 59 percent of its income, while its car club controls 30 percent. SASCO’s transport unit, which comprises 82 trailers, accounts for 11 percent.
The company generates SAR 2.3 million from dry cargoes, Al Malik said, adding that it issued 45,000 international licenses for transportation in 2014.
Argaam reported last month on SASCO’s plan to raise its capital to SAR 540 million. Al Malik was optimistic that the move would boost the company’s financial position, given that it has SAR 250 million worth of restructured debts.
The company is also said to own land worth an estimated SAR 347 million, some of which is still under development.
SASCO’s earnings in Q1-2015 fell 59 percent year on year to SAR 3.2 million, compared to SAR 7.8 million, according to data available on Argaam.
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