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Saudi Automotive Services Co. (SASCO) said the financial impact from raising the profit margins of fuel stations is related to the actual sales of the petrol products, as well as the date of implementation, CEO Riyadh Al-Malik told Argaam.
"The relevant financial impact cannot be determined at present; however, I believe the decision will reflect positively on the company's financials," Al-Malik added.
According to data compiled by Argaam, SASCO received earlier this month the energy ministry's approval to increase profit margins of fuel stations and other service centers.
Petrol profit margins were hiked to SAR 0.15 from SAR 0.09 per liter, and diesel margins to SAR 0.05 from SAR 0.035 per liter.
"Higher gross profit and net operating profit in Q3 2019 were mainly driven by a 23 percent increase in sales revenue," Al-Malik noted while commenting on SASCO's Q3 financials.
He attributed the company's robust results to its expansionary policy and the high-quality products offered in more than 180 sites across the Kingdom.
The third quarter financials were also backed by revenue from subsidiaries and other investment yields, he stated.
SASCO posted a 76 percent profit hike year-on-year (YoY) to SAR 13 million in Q3 2019.
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