SASCO signs investment contracts with SPGA for fuel station

18/01/2024 Argaam
Logo ofSaudi Automotive Services Co. (SASCO)

Logo of Saudi Automotive Services Co. (SASCO) 


Saudi Automotive Services Co. (SASCO) announced today, Jan. 18, that it has signed three investment contracts for fuel station sites in the Eastern Region with the State Properties General Authority (SPGA).

 

The first station, located on the Dammam-Abu Hadriyah Road, will be 40,000 square meters (sqm), while the second, located on the Al Nairyah-Abu Hadriyah Road, will be 17,900 sqm. The third station, located on Al-Ahsa-Khurais Road will be 22,000 sqm, according to a statement to Tadawul.

 

The contracts' value is SAR 3.4 million, increasing 10% every 5 years. This is for a 15-year term for each site, the statement added.

 

The company expects these sites to gradually boost revenues, impacting operating profits in the second quarter of 2024, adding that there are no related parties to the deal.

 

This deal is part of SASCO's expansion in the Kingdom. The company now has 541 operational stations after excluding 25 sites and returning them to their owners. Additionally, 50 sites are under construction or development and will be operational in 2024.

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