RIYADH: Aldrees Petroleum and Transport Services Co. saw its profits drop in the second quarter of 2022, thanks to the impact of Ramadan and losses from investment portfolios.
The firm recorded a SR46 million ($12.24 million) profit in the three months to the end of June, down from SR62.4 million in the first quarter of 2022.
However, Aldrees is still up year-on-year, bringing in SR10 million more in 2022’s second quarter compared to to the same period last year.
Speaking to Argaam, Aldrees CEO Abdulilah Saad Aldrees attributed the profit decline to the drop in wheat cargo transport, driven by the fall in number of incoming ships amid the Russia-Ukraine war.
The rise in general and administrative expenses due to appointing new staff, especially Saudis, and the increase in some employees’ salaries also contributed to the lower figure, he said.
The company paid the full price of a warehouse plot located in Al Sulay district, Riyadh, owned by Saudi Paper’s subsidiary from available cash in the company, he added.
Aldrees expects the company to post better results in the third quarter, compared to the year-ago period.
Despite the quarter-on-quarter fall, Aldrees has seen its profit increase by 44 percent for the first half of 2022 compared to the same period a year earlier, a bourse filing showed on Thursday.
The number of petroleum transport stations reached 698 by the end of second quarter, while the number of trucks reached 1,405.