GASCO CEO sees Q1 2023 sales on par QoQ; continued demand growth expected

GASCO's CEO Abdulrahman bin Sulaiman

National Gas and Industrialization Co.’s (GASCO) sales in the first quarter of 2023 are likely to remain on par with Q4 2022 level, CEO Abdulrahman bin Sulaiman told Argaam  in a statement.

Bin Sulaiman explained that the 20% year-on-year (YoY) increase in the company's sales in Q4 2022 was driven by an uptick in the selling price of gas and sales of empty cylinders. This, in turn, elevated profits.

Further, he indicated that the total volume of liquefied gas sold in Q4 2022 rose 7% YoY to 747.6 million liters.

He added that gas prices remained unchanged in Q4 2022, given that the price of liquefied petroleum gas (LPG) is determined and reviewed periodically by relevant authorities.

The CEO anticipated continued growth in demand in light of the Kingdom's projects and events that will attract more visitors and residents. This is in addition to restoring the number of pilgrims to pre-pandemic levels.

When asked about the move to spin off the gas wholesale and transportation activity into two subsidiaries, he stated that the decision came under the procedures for the company’s preparation to open the market. He indicated that the related business activities will continue at the same pace, noting that the spin-off process is still awaiting the approval of relevant authorities. 

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

According to data compiled by Argaam, GASCO’s net profit increased 6% YoY to SAR 214.1 million by the end of 2022, from SAR 201.4 million in 2021. Fourth quarter profit rose 24% to SAR 54.7 million, while revenue reached SAR 578.54 million.