GASCO saw higher expenses in H1 on rising labor costs: CEO

National Gas & Industrialization Co. (GASCO) incurred more than SAR 9 million in expenses in the first six months of 2018, driven by higher cost of labor as well as allowances to compensate the rising cost of living, chief executive Abdul Karim Bin Hamad Al Najidi told CNBC Arabia.

However, the company managed to cut back on the cost of revenue and deliver a satisfactory performance in terms of gross profit and revenues in Q2 2018, Al Najidi added.

As GASCO caters to a number of business fields including the industrial sector and housing, it was affected by major changes in the economic environment, particularly the expatriate exodus.

“Such an impact would be temporary, and revenue will be back to normal levels over the coming quarters,” he added.

GASCO reported a profit decline of 31 percent year-on-year (YoY) to SAR 70.6 million for the first half of 2018, data compiled by Argaam showed.

The Saudi-listed company has no outstanding debts, Al-Najidi said, adding that existing liquidity will be directed to capital investments, whether partnerships, acquisitions or expansions.