Saudi firm Aldrees records 50% net profit growth

CAIRO: In another sign that the Saudi Arabian economy is recovering from the Covid-19 pandemic, Aldrees Petroleum and Transport Services Co, one of the biggest operators of fuel stations in the kingdom, reported a 50 per cent net profit rise in the first nine months of 2021, Arab News reported.

Profit rose from SR81.6 million during the first nine months of 2020, to SR122.7 million in the same period this year, the company said in a bourse filing. This growth is due to a rise in sales of the transport and petroleum services sector, as well as the reevaluation of its investments, it added.

The demand for gasoline was noticeably higher in the first seven months of 2021 from a year ago, Saudi official data posted on JODI database showed.

The differences were starkest in April and May as demand topped 400 thousand barrels per day (kb/d) compared to the same two months last year when demand stayed below 300 kb/d.

The increase in demand is a major factor for the increase in Aldrees’ revenues that have almost doubled in the third quarter of 2021, compared to the same time the previous year.

The new figures came despite higher marketing, general, administrative expenses, financial and Zakat charges, as well as a decrease in the joint venture’s investment profit, the company said.