Aldrees targets to rent 100 stations in 2023, market share at 8%: CEO

Abdul Elah Bin Saad Al Drees, CEO of Aldrees Petroleum and Transport Services Co. (Aldrees)

Aldrees Petroleum and Transport Services Co.’s (Aldrees) market share hit nearly 7.88%, CEO Abdul Elah Bin Saad Al Drees told Argaam.

Commenting on Q2 2023 financial statement, the CEO attributed the profit rise to higher sales of the petroleum and transport services divisions, an increase in other revenues, financing income from cash investments, commission income from sukuk investment, as well as lower selling and marketing expenses. 

Total sales of the company’s petroleum division rose to SAR 3.4 billion in Q2 2023 from SAR 2.9 billion in Q2 2022. Similarly, total sales of the transport division jumped to SAR 133 million from SAR 92.7 million a year earlier, the top executive said. 

The profit margin of petrol (91/95) and diesel reached SAR 0.15 and SAR 0.5 per liter, respectively. 

By the end of Q2 2023, the company had 788 petrol stations and 1,476 tractor heads. Meanwhile, the number of cars operating with RFID-equipped petrol pumps and automated dispensing system reached 958,000. 

The CEO indicated that Aldrees aims to rent 100 petrol stations for the current year, bringing the total number by the end of the year to 840. It also seeks to boost the transport fleet to 250 trucks. 

In addition, Aldrees targets opening 100 petrol stations annually, bringing the total number of stations to 1,000 by the end of 2025. 

The expansion and diversification plans include upgrading services on an annual basis in line with market changes, in addition to providing mobile recharge services at the sites of some companies and projects. 

Asked about the challenges of establishing new stations within large cities due to high land prices, the CEO stated that challenges always arise and can be overcome by selecting profitable sites after conducting the necessary feasibility studies. 

The company is already working on alternative solutions, including renting and operating some of the new stations established by owners under the company's identity, he added. 

According to data compiled by Argaam, Aldrees reported a net profit of SAR 140.8 million for the first half of 2023, a jump of 30% from SAR 108.3 million in the prior-year period. In Q2 2023, Aldrees posted a net profit of SAR 70.2 million, up 53% from SAR 45.9 million in Q2 2022.