Aldrees eyes 1,000 stations by year-end: Vice Chair

Logo of Aldrees Petroleum and Transport Services Co.

Aldrees Petroleum and Transport Services Co. has currently 980 stations, and targets 1,000 by the end of 2024, one year ahead of the previously set schedule. It also eyes 1,500 stations in the future by opening100 stations per year, Vice Chairman Abdulmohsen Aldrees told CNBC Arabia.

Aldrees added that the company’s investment in Sukuk will not affect its current or future expansions, explaining that the Sukuk purchase aims to diversify income sources. The company plan that this investment will be a basic support for its revenues.

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He clarified that the Sukuk purchase will be financed from the company’s available liquidity, as the company’s daily sales reach SAR 60 million due to the large number of stations. The company’s total investments in Sukuk with several banks since 2022 have hit SAR 500 million, all of which are Sharia-compliant.

On the impact of oil price fluctuations on the company, Aldrees clarified that the selling price is fixed as set by the government, which incurs part of the petroleum cost on behalf of consumers. The Vice Chairman also mentioned that Aldrees pays a monthly bill of SAR 1.8 billion to Saudi Aramco.
 

The petroleum retailer announced today, Oct. 1, the purchase of additional Tier 1 capital Sukuk denominated in dollars, issued by Riyad Bank, amounting to 223.875 million riyals (equivalent to 59.70 million dollars), with an expected return of 5.5% annually.
 

The profits will be distributed semi-annually, and the Sukuk are non-tradable with a maturity of five and a half years.