I am delighted to introduce Fueling the Future, GASCO’s annual report for 2023. It sets out the key achievements of our business over the previous 12 months and details some of the steps we are taking to prepare ourselves for the future.
At the heart of that is an approach that recognizes our heritage and legacy, but which is also cognizant of the changing needs of those that we serve.
This is not new for GASCO as a business. Our operating history demonstrates the ability of the company to respond to the changing needs of different times. In the 60 years since our foundation, that agility has maintained GASCO at the forefront of LPG supply in Saudi Arabia.
We will continue to change alongside our customers to ensure that our products and services always remain relevant and accessible. New competition will create some business challenges, but I am confident that we have the team, expertise, and strategy to address those changes. With agility and innovation, we are already transforming the way that we work, creating a solid foundation that will enable us to thrive in a changing operating context.
In 2023, we achieved an operational profit of
SAR0MN
leaping from
SAR0MN
in 2022
A Year of Renewed Growth
In the last two years, we have seen the positive impacts of the restructuring of the business and the adoption of a new strategic approach. The last two years have shown solid and sustained growth. This has seen our net income increase 66% since 2020. In 2023, we achieved an operational profit of SAR 128 million, leaping from SAR 108 million in 2022.
This has been achieved through investing in our workforce, our facilities, and new technologies. By driving efficiencies through the business, we have created a stable foundation to take advantage of the opportunities created by the changing environment.
At the same time as increasing efficiency, our unwavering focus on our customers has delivered increased satisfaction levels, with our customer satisfaction score increasing
This has seen our net income increase
0 %
from 4.5 to 4.8 in 2023. That journey of constant evolution and improvement will not stop. As we step into a very different future, with the deregulation of the LPG market.
we are continuing to adopt a strategic approach to ensure that we can continue to deliver high-quality products and services to our customers.
Our new structure, which separates the holding company from the activities of our different divisions will enable those new entities to operate with increased agility within the marketplace, exploring new opportunities and identifying new income streams for our business.
GASCO recognizes the challenges of a managed transition to a low carbon future. Our products are supporting that transition, enabling customers and businesses to access clean, affordable, and reliable fuel.
Sustainable Solutions
Our modern facilities allow us to deliver LPG reliably and safely, meeting the highest international standards.
A key element of delivering that ambition is GASCO’s focus on energy resilience. That is why we continue to invest in expanding our storage capacity. Our expansion of LPG storage started in 2019 to increase reliability and consistency of supply. In 2024, this will deliver a tenfold increase in storage at our Riyadh plant, going from 4000m3 to 40,000m3.
This means that GASCO has one of the largest LPG storage capacity facilities globally, with the largest mounded tanks in the world, placing us at the forefront of the industry when it comes to providing clean and reliable energy to our customers.
Our strategy and objectives are firmly embedded within Vision 2030 which is seeking to guide the transformation of the Saudi Arabian economy.
Vision 2030
GASCO’s activities are also essential to achieve the economic diversification envisioned in Vision 2030.
By efficiently moving LPG across the kingdom, we are also supporting a range of industries from manufacturing to hospitality, fostering economic growth.
This is why we see our activities as integral to the Quality-of-Life Program under Vision 2030. Our provision of a consistent and clean energy source enhances domestic comfort, supports commercial activities, and fuels industrial processes.
Our business activities are also fully aligned with the goals of the National Transformation Program (NTP), a key pillar of Vision 2030. By embracing new technologies in the safe transportation of LPG, we are supporting the rapidly emerging digital economy and strengthening communication channels with citizens and businesses. This includes the deployment of advanced tracking and management systems to optimize the transportation process, enhancing efficiency, and ensuring the security of the supply chain.
This is why at the center of our business strategy is working closely in partnership with government entities and other stakeholders, to understand their needs and to increase our contribution to a sustainable and economically successful future.
None of this would be possible without the skills, commitment, and diligence of the people who power our business.
Our Team
Our team works tirelessly to deliver the success of the wider business. They are a key asset that will provide the foundation for our future success.
Human capital development remained a focal point, with 27,000 learning hours delivered through our training programs. Our workforce, now comprising 1,977 individuals, achieved a Saudization rate of 54%, totaling 1,077 Saudi employees. We have taken proactive steps to empower gender diversity by actively increasing the representation of women in our workforce. It is this team that will deliver continued growth and enable us to thrive in a rapidly changing operating environment. Their work in 2023 has demonstrated that they have the abilities and talents to propel us forward into the future.
I want to seize this moment to express my gratitude to everyone involved, from those leading our initiatives to those who deliver our products across the towns and cities of the Kingdom . Our success would not be possible without them.
Our workforce, now comprising
0,0
individuals achieved a Saudization rate of
0%
totaling
0,00
Saudi employees
Saudi Arabia is undergoing an exciting transformation to deliver a prosperous future. Our industry is also changing, and GASCO too is embracing change and the opportunities that it brings.
Fueling the Future
In 2024, we will implement the strategy we have been developing to ensure that we remain at the forefront of providing clean and safe energy to our customers.
That will enable GASCO to fuel the future with confidence, delivering value to customers, shareholders, and stakeholders alike.
We are trusted by our customers, have the logistics networks and partnerships in place to build upon, and have moved from declining revenue into solid and sustained growth.