Aldrees’ Q3 profit lifted by expansions in transport services

Aldrees Petroleum and Transport Services Co.’s Q3 2018 net profit was bolstered by the strong performance of the transport segment, which saw expansions in logistics services and transport contracts, Abdulmohsen Aldrees, the company’s vice chairman, told CNBC Arabia on Thursday.

“Revenue was driven by movements in the petroleum product prices. The higher prices led to an increase in banking charges, due to the need for more capital injections,” Aldrees said.

Meanwhile, the company’s earnings were pressured by higher expatriate labor costs, and utility expenses.

Commenting on fuel prices, Aldrees added that consumption of the 95 octane dropped 65 percent due to the price differential with the 91 octane. However, the overall consumption has not been impacted by consumers’ shift.

Aldrees reported a net profit after tax and zakat of SAR 61.6 million in the first nine months of 2018, a rise of 20.5 percent year-on-year, Argaam reported.