GAS relies on diversified income streams, has over SAR 1.7B ongoing projects: CEO

Faisal AlDabal, Vice Chairman and CEO of Gas Arabian Services Co. (GAS)

Faisal Al-Dabal, Vice Chairman and CEO of GAS Arabian Services Co. (GAS), said that the company relies on diversified income streams. This strategy provides financial stability and shields the company from market fluctuations.

In an interview with Argaam on the sidelines of SNB Capital - Nomu Connect, Al-Dabal highlighted that the commercial segment benefits from consistent revenue through long-term contracts, ensuring stable annual income at a rate of 75-80%, thereby minimizing seasonal impacts.

He explained that the company’s performance is more influenced by the phases of project execution than by seasonal factors. Typically, project implementation spans 1.5 to three years, with the initial construction phase involving investments in engineering studies, equipment, assets, and employee training. This phase generally yields lower profits compared to the installation and delivery stages.

Al-Dabal revealed that the portfolio of projects underway exceeds SAR 1.7 billion, noting that an additional 5% of these projects will be executed next month.

He added that the project timelines provide the company with a clear view of future profits through 2027.

Regarding the factors behind the profit increase for the first nine months of the year, Al-Dabal attributed it to robust financial performance, driven by 170% growth in the technical services segment, a 25% rise in the commercial segment, and a 200% surge in the manufacturing segment compared to the same period last year.

He pointed out that the company recorded its highest-ever revenue and net profit in Q3.

Over the first nine months, GAS outperformed its 2023 figures, reflecting strong financial and operational performance. Al-Dabal expects the positive trend to continue, fueled by ongoing growth across various sectors and projects under execution.

On the company's transition to the main market, Al-Dabal confirmed that GAS submitted its application in early September and is addressing regulatory feedback swiftly and efficiently.

According to data compiled by Argaam, GAS’ net profit rose by 40% to SAR 81 million in the first nine months of 2024, compared to SAR 57.7 million in the same period of 2023.