Aldrees says leasing petrol stations ‘better’ than ownership, holds SAR 100 mln equity portfolio

Aldrees fuel station

Aldrees Petroleum and Transport Services Co. operated 614 fuel stations as of Sept. 30, 2021, of which 513 were leased, accounting for 83% of its service stations.  

The petrol stations leased under over 10-year contracts is a better option than ownership. The purchase cost reaches SAR 10 million per station, which is equal to the cost of leasing 10 stations, Aldrees told Argaam, adding that leasing allows it to generate higher profit. 

The fuel retailer operates more than 290 stations under over 10-year contracts, which represent 57% of its leased facilities. Moreover, 223 stations are operated under short-term contracts with an average leasing cost of SAR 723,000 per station annually, compared to an average leasing income of SAR 490,000.

Elsewhere, Aldrees added that it owns SAR 100 million worth of equity portfolio, managed by Alkhair Capital. This portfolio recorded a net profit of almost SAR 1.38 million for the period between March 24 and Sept. 30, 2021.

Aldrees reported a net profit after Zakat and tax of SAR 122.7 million for the first nine months of 2021, a rise of 50% from SAR 81.6 million in the prior-year period. The third-quarter net profit jumped 29% year-on-year to SAR 47.4 million, Argaam reported.