Fuel retailer margin uplift makes sector ‘more attractive’: CEO of SASCO

The Kingdom’s decision to raise gasoline retailer margins has placed the fuel stations sector among the most attractive industries, Riyadh Almalik, CEO of Saudi Automotive Services Company Co. (SASCO), told Argaam in a telephone call.

“SASCO is seeking to boost its market share by acquiring new locations inside and outside cities. SASCO will acquire new locations when conditions are favorable and the relevant studies prove feasible,” Almalik said.

The number of SASCO’s fuel stations in the Kingdom reached 201 year-to-date. SASCO also acquired a number of locations in different parts of the country. Some of which have commenced operations, and the remaining are under construction or development. Accordingly, the company owned 219 stations by the end of September 2020.

“SASCO aims to increase the number of its stations and provide high-quality services under a well-studied plan to maintain its leadership and vision in terms of service quality,” Almalik added.

Moreover, Almalik explained that the new fuel margin is only granted if the company is qualified by the Ministry of Municipal and Rural Affairs (MOMRA), adding that qualified gasoline retailers have reached 20 year-to-date.

SASCO was among the first operators qualified by MOMRA in 2013 to manage, operate and maintain gasoline and service stations on highways. Since then, the company has expanded its locations across the Kingdom by 200%, which had a positive impact on its results.

Commenting on the coronavirus pandemic impact, Almalik pointed out the crisis has affected many economic activities. SASCO Palm has been directly hit by the pandemic lockdown that was part of the precautionary measures adopted by the Kingdom. However, SASCO Palm is expected to pursue its expansion plans and contribute to the company’s earnings amid economic recovery.

SASCO Palm stores reached 81 by the end of September 2020.

Almalik added that SASCO’s affiliate Ostool Al Naqil Co. currently owns 140 carriers and 147 trucks. It aims to expand its fleet, in line with its expansion in dry bulk business.