Aldrees Q3 bolstered by lower expenses, says CEO

Aldrees Petroleum and Transport Services Co.’s Q3 2017 net profit was supported by declines in selling, general and administrative expenses and zakat charges along with higher other income, chief executive officer Abdulelah Aldrees told Argaam on Sunday.

“This rise came despite lower sales in the petroleum services segment and higher financial charges. Sales from the petroleum unit dropped by 2.91 percent YoY in Q3,” Aldrees said.

The company also slashed its expenses by 3.8 percent YoY in the same period.

The fuel retailer’s third-quarter net profit edged up 0.6 percent YoY to SAR 18.2 million.

Aldrees added that transport business turned to a net profit of SAR 4.21 million in Q3 2017 compared to a net loss of SAR 208,000 in the same period of 2016.

Looking ahead, Aldrees said that if the expected hike in energy prices comes about without any rise in profit margins, there would be a negative impact on the company.