Aldrees reports stable operations, leverages rerouted supply, tanker activity

Aldrees maintains stable operational and financial performance, supported by proactive planning and risk management

Aldrees Petroleum and Transport Services Co. confirmed that its operational activities remain untouched by recent regional developments. The company is leveraging on the diverted supply lines from the Kingdom’s Eastern Province to the West side, in addition to achieving extra gains driven by growing demand for tankers and enhanced operational utilization.

The company said the ongoing geopolitical crisis has triggered global supply chain disruptions and sharp oil price increases, driving up the cost of goods and services worldwide, according to a statement picked by Argaam.

Despite the broader impact on companies, Aldrees maintained stable operational and financial performance, supported by proactive planning and risk management.

Fuel Stations Segment

The Kingdom has seen no internal disruptions affecting demand, with economic activity and daily life remaining stable and fuel sales continuing at normal levels without slowdown. Further, Aldrees continues to receive full fuel allocations from Saudi Aramco without delays or supply issues.

Logistics and Transport Segment

With most of its fleet operating under medium- and long-term contracts, the segment maintained stable operations and revenues, while clients saw no material direct impact from the ongoing geopolitical tensions, ensuring normal operating rates. Some routes were adjusted due to shipment shifts from east to west, creating additional profit opportunities that remain immaterial to overall results.

Operating Costs

Stable domestic fuel prices shielded operating costs from global oil price increases. Besides, maintaining six months of inventory for assets, spare parts, and key supplies helped mitigate higher global shipping and transport costs.

Annual framework agreements with key suppliers also enabled the company to secure and lock in supply at favorable prices, while coordination was stepped up to accelerate deliveries ahead of potential escalation.

Suspension of Tanker Sales

Rising transport demand locally and internationally boosted tanker demand, prompting Aldrees to suspend sales of some replaced tankers and redeploy them operationally to enhance capacity, generating additional returns. However, the financial impact remains limited and not material to overall results or outlook.