Aldrees net profit rises 336% to SAR 291.7 mln in FY19

Aldrees Petroleum and Transport Services Co. (Aldrees) reported a net profit after Zakat and tax of SAR 291.7 million for the fiscal year 2019, up 336% year-on-year (YoY), against a net profit of SAR 66.9 million in 2018.

Higher profit is attributed to an increase in sales of transport and petrol divisions, higher profit margin, a rise in other income, and a decrease in sales and marketing expenses.

This is despite higher general and administrative expenses (G&As), decline in joint venture profit, rise in Zakat expenses and provision of contingent liabilities.

The company noted in a statement to Tadawul that it has complied with the requirements of the Saudi Arabian Oil Company (Saudi Aramco) by providing the quantities of fuel sold after the increase in profit margin, and the company is still awaiting approval of the amount.

The company recognized the effect of the profit margin increase in the FY 2019 financial statement, by reducing the cost of sales in the comprehensive income statement.

In Q4 2019, the company reported a net profit of SAR 228 million, compared to a net profit of SAR 13.6 million in the same period of 2018.