Aldrees aims to add 100 new stations in 2023, market share reaches 7.4%: CEO

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

Aldrees Petroleum and Transport Services Co. seeks to add 100 new stations across the Kingdom this year, CEO Abdulelah Aldrees told Argaam in a phone call.

He added that the company's market share of the fuel stations segment is estimated at nearly 7.4%, noting that the firm added 27 new stations and closed three in Q4 2022. 

The petrol (fuel stations) segment recorded around SAR 3.26 billion in sales during the fourth quarter of 2022, compared with SAR 2.54 billion a year earlier.

Meanwhile, the transport division reported sales of more than SAR 113.6 million in Q4 2022, compared with SAR 110 million a year before.

The rise in diesel prices has not affected the company's sales or profits, the CEO said, explaining that the profit margins are stable before and after this increase.

All contracts with corporate customers in the transport segment include a clause for diesel price hike, which does not affect the profit margin of the transport division.

The number of trucks in the transport fleet segment reached 1,497 by the end of 2022, the top executive said, indicating that the company will add 200 new trucks this year. He expects the segment to report nearly 15% profit growth.

The division also has ongoing corporate contracts worth over SAR 442 million this year, which includes the transportation of basic foodstuffs, metals, petrochemicals, and fuel.

Commenting on sukuk investments, the CEO said the company plans to continue investing in sukuk and increase it by SAR 55 million, bringing the total sukuk portfolio to SAR 200 million.

He pointed to Aldrees' investment in the sukuk of Riyad Bank and Al Rajhi Bank, stood at SAR 100 million and SAR 45 million, respectively, noting that the sukuk returns contributed nearly SAR 1.5 million to the fourth-quarter earnings.

Aldrees reported a net profit after Zakat and tax of SAR 241.8 million for 2022, a rise of 37% from SAR 176.8 million in the previous year. Meanwhile, Q4 earnings reached SAR 71.8 million, according to data available with Argaam.