Aldrees says capital hike aims to finance logistics expansions

Aldrees Petroleum and Transport Services Co.'s planned capital increase will finance expansions in logistics services, vice-chairman Abdulmohsen Aldrees told CNBC Arabia on Wednesday.

“The company will build cold storage facilities and warehouses, increase workforce and expand its presence across the Kingdom,” Aldrees said.

The fuel retailer is planning new projects and finalizing others in the current period.

Additionally, Aldrees aims to boost its transport fleet, replace old tankers and upgrade new fuel stations.

The fuel distributor is seeking to replace steel petroleum tankers with aluminum tankers over the next three years at a total estimated cost of SAR 60 million, in compliance with state-run Saudi Aramco’s request, he concluded.

Earlier this week, the Capital Market Authority (CMA), the Kingdom’s market regulator, approved the company’s request to increase its capital from SAR 500 million to SAR 600 million through issuing one bonus share for every five existing shares, Argaam reported.