GASCO CEO says demand growth to continue; operating profit up 40%

Abdulrahman bin Suleiman, CEO of National Gas and Industrialization Co. (GASCO)

National Gas and Industrialization Co. (GASCO) expects demand growth to continue as Saudi Arabia pushes on with current projects as well as events that attract more visitors and residents, CEO Abdulrahman bin Sulaiman told Argaam.

In addition, the pilgrim numbers are back to the pre-pandemic levels or may have even surpassed earlier stages, he noted.

GASCO reported an improved operating profit in Q1 2023, which rose 40% year-on-year (YoY) on increased sold volumes and lower cost of revenue, bin Suleiman added.

Total sold volumes of liquified gas reached 817.7 million liters in Q1, up nearly 10% YoY, he said, adding that the price of liquefied petroleum gas (LPG) is determined and reviewed periodically by relevant authorities.

He expected GASCO’s Q2 2023 sales to remain on par with Q2 2022 level. 

When asked about the move to spin off the gas wholesale and transportation activity into two subsidiaries, the CEO said that the related business activities will continue at the same pace, noting that the spin-off process is still awaiting the approval of the relevant authorities. 

GASCO seeks to develop partnerships that help boost the performance of both the company and the industry, and this will reflect positively on the company’s financial position. 

Regarding the memorandum of understanding (MoU) to set up a company working in the land transport and logistics activities with National Shipping Co. of Saudi Arabia (Bahri), he indicated that cooperation opportunities are being studied and any developments will be announced in due course.

In 2023, GASCO seeks to bolster operating efficiency through implementing the relevant initiatives, improving the services introduced to clients in line with their needs, and developing the communication channels with clients as per Vision 2030.

The company also aims to increase consumer awareness towards its product portfolio in a way that would reduce the risks related with using LPG while enhancing the safety standards to maintain the safety of individuals and facilities.

GASCO’s Q1 2023 net profit was steady YoY at SAR 73 million, Argaam reported.