/ Financial Results
Financial Performance
Revenue reached 2,458 million riyals in 2023 compared to 2,080 million riyals in 2022, with an increase of 18.2% , and net profit amounted to 227.3 million ri-yals in 2023 compared to 214.1 million riyals in 2022, with an increase of 6.2%
The main reasons for the increase in revenues to 378 million riyals are:
The increase in gas sales revenue by 341 million riyals due to an increase in gas prices and sales volumes.
The increase in commercial project revenues by 28 million riyals.
The increase in fiber cylinder sales by 12 million riyals.
The increase in revenues from other services (transportation, etc.) by 7 million riyals.
Despite a decrease in scrap sales by 10 million riyals.
The main reasons for the increase in net profit by 13.2 million riyals are:
The increase in overall profit by 26.2 million riyals due to the increase in revenues.
The increase in investment and financing income by 17.9 million riyals.
The increase in share of associate companies’ results by 5.1 million riyals.
The decrease in financing costs by 2.3 million riyals.
The decrease in other revenues by 31.8 million riyals.
Despite The increase in operating expenses by 6.5 million riyals.
Financial performance of the company for the
past five years
Working capital (in thousands of riyals):
| Statement | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| a) Current Assets | 555,571 | 564,931 | 616,448 | 708,918 | 572,983 |
| b) Current Liabilities | 528,113 | 464,902 | 348,226 | 394,515 | 344,350 |
| Working Capital (a) - (b) | 27,458 | 100,029 | 268,222 | 314,403 | 228,632 |
Statement of Financial Position
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Assets | |||||
| Non-current assets | |||||
| Property, machinery and equipment | 835,228 | 787,307 | 717,545 | 633,970 | 605,271 |
| Intangible assets | 38,555 | 36,479 | 31,919 | 33,148 | 32,290 |
| Investment properties | 33,442 | 33,442 | 34,342 | 34,353 | 34,494 |
| Right-of-use assets | 17,854 | 19,723 | 1,495 | 3,402 | 5,461 |
| Investments in associate companies | 89,408 | 89,760 | 87,899 | 80,270 | 79,289 |
| Financial assets held at fair value through other comprehensive income | 685,727 | 654,996 | 701,835 | 678,074 | 787,538 |
| Financial assets held at amortized cost | 240,872 | 184,016 | 146,500 | 129,995 | - |
| Prepaid amounts and other assets | 30,563 | 27,850 | - | - | - |
| Total non-current assets | 1,971,649 | 1,833,573 | 1,721,535 | 1,593,212 | 1,544,343 |
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Current assets | |||||
| Financial assets held at fair value through profit and loss | 122,010 | 132,357 | 199,154 | 179,498 | 169,114 |
| Financial assets held at amortized cost | 10,026 | 30,000 | 101,067 | - | - |
| stock | 207,129 | 163,393 | 162,046 | 157,749 | 166,697 |
| Receivables | 34,793 | 30,775 | 31,149 | 45,482 | 38,594 |
| Prepaid expenses and other assets | 51,975 | 32,555 | 59,664 | 49,078 | 40,967 |
| Cash and cash equivalents | 129,638 | 175,852 | 63,368 | 277,111 | 157,610 |
| Total current assets | 555,571 | 564,932 | 616,448 | 708,918 | 572,982 |
| Total assets | 2,527,220 | 2,398,505 | 2,337,983 | 2,302,130 | 2,117,325 |
| Shareholders' equity and liabilities | |||||
| Shareholders' equity | |||||
| Paid Capital | 750,000 | 750,000 | 750,000 | 750,000 | 750,000 |
| Regular reserve | 225,000 | 225,000 | 225,000 | 225,000 | 270,551 |
| Retained earnings (accumulated losses) | 372,469 | 295,832 | 250,183 | 143,041 | (124,216) |
| Share of other comprehensive loss of associate companies | (481) | - | - | - | - |
| Unrealized gains on financial assets held at fair value through other comprehensive income | 498,705 | 464,132 | 510,971 | 487,209 | 668,339 |
| Total shareholders' equity | 1,845,693 | 1,734,964 | 1,736,154 | 1,605,250 | 1,564,674 |
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Non-current liabilities | |||||
| Term loan | 25,053 | 72,725 | 112,344 | 143,642 | - |
| Lease obligations | 12.316 | 14,957 | 659 | 2,242 | 4,699 |
| Certain employee benefit obligations | 116,044 | 110,957 | 140,601 | 156,481 | 203,602 |
| Total non-current liabilities | 153,413 | 198,639 | 253,604 | 302,365 | 208,301 |
| Current liabilities | |||||
| Trade payables | 203,202 | 215,973 | 133,783 | 111,758 | 97,832 |
| Lease obligations | 7,282 | 5,251 | 1,781 | 2,309 | 2,271 |
| Accrued expenses and other current liabilities | 243,852 | 153,370 | 124,966 | 162,688 | 161,266 |
| Term loan | 26,500 | - | - | 32,000 | - |
| Provision for Zakat | 47,278 | 90,308 | 87,695 | 85,760 | 82,981 |
| Total current liabilities | 528,114 | 464,902 | 348,225 | 394,515 | 344,350 |
| Total liabilities | 681,527 | 663,541 | 601,829 | 696,880 | 552,651 |
| Total shareholders' equity and liabilities | 2,527,220 | 2,398,505 | 2,337,983 | 2,302,130 | 2,117,325 |
| 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|
| Total assets | 2,527,220 | 2,398,505 | 2,337,983 | 2,302,130 | 2,117,325 |
| Total liabilities | 681,527 | 663,541 | 601,829 | 696,880 | 552,651 |
| Total shareholders' equity and liabilities | 2,527,220 | 2,398,505 | 2,337,983 | 2,302,130 | 2,117,325 |
Statement of Comprehensive Income (in thousands of riyals):
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Revenues | 2,457,913 | 2,080,209 | 1,904,226 | 1,963,042 | 1,922,558 |
| Gross profit | 304,819 | 278,629 | 254,757 | 222,508 | 242,922 |
| Selling and distribution expenses | (68,328) | (76,617) | (88,080) | (87,528) | (90,035) |
| General and administrative expenses | (107,012) | (98,307) | (94,484) | (93,019) | (117,934) |
| Allowance for expected credit losses | (1,783) | 4,261 | 1,338 | (2,108) | (7,582) |
| Operating profit | 127,696 | 107,966 | 73,531 | 39,853 | 27,371 |
| Investment income | 92,689 | 77,354 | 122,104 | 90,364 | 102,347 |
| Financing income | 12,834 | 10,314 | 7,484 | 1,813 | 3,124 |
| Financing costs | (3,935) | (6,201) | (9,034) | (6,045) | (249) |
| Share in the results of associate companies | 8,004 | 2,875 | 13,430 | 6,516 | 5,484 |
| Other income, net | 5,038 | 36,805 | 8,112 | 17,091 | 6,941 |
| Decrease in the value of investment properties | - | - | (11) | (141) | - |
| Profit before legal Zakah | 242,326 | 229,113 | 215,616 | 149,451 | 145,018 |
| legal Zakah | (15,011) | (15,050) | (14,252) | (12,559) | (35,575) |
| Net profit for the year | 227,315 | 214,063 | 201,364 | 136,892 | 109,443 |
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Other comprehensive income for the year | |||||
| Items that will not be subsequently reclassified to profit or loss in subsequent periods | |||||
| Gain/(loss) on remeasurement of defined employee benefits | 60 | 26,586 | (472) | (13,779) | (12,374) |
| Share in other comprehensive loss | (480) | - | - | - | - |
| Change in fair value of financial assets held at fair value through other comprehensive income | 33,835 | (46,840) | 23,762 | (122,380) | 33,844 |
| Total other comprehensive income/(loss) for the year | 33,415 | (20,254) | 23,290 | (136,159) | 21,470 |
| Total comprehensive income for the year | 260,730 | 193,809 | 224,654 | 733 | 130,913 |
| 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|
| Revenue | 2,457,913 | 2,080,209 | 1,904,226 | 1,963,042 | 1,922,558 |
| Cost of revenue | (2,153,094) | (1,801,580) | (1,649,469) | (1,740,534) | (1,679,636) |
| Selling and distribution expenses | (68,328) | (76,617) | (88,080) | (87,528) | (90,035) |
| General and administrative expenses | (107,012) | (98,307) | (94,484) | (93,019) | (117,934) |
| Allowance for expected credit losses | (1,783) | 4,261 | 1,338 | (2,108) | (7,582) |
| Legal Zakah | (15,0110) | (15,050) | (14,252) | (12,559) | (35,575) |
Statement of Cash Flows (in thousands of riyals):
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Net Operating Cash Flow | 184,601 | 392,882 | 130,080 | 111,397 | 209,741 |
| Net investing cash flow | (126,366) | (39,689) | (178,800) | (159,575) | 101,931 |
| Net financing cash flow | (104,448) | (240,710) | (165,022) | 167,179 | (192,499) |
| Net cash flow | (46,213) | 112,483 | (213,742) | 119,001 | 119,173 |
| Cash and cash equivalents at the beginning of the year | 175,851 | 63,368 | 277,111 | 157,610 | 38,436 |
| Cash and cash equivalents at the end of the year | 129,638 | 175,851 | 63,369 | 276,611 | 157,609 |
| 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.4% | 13.4% | 13.4% | 11.3% | 12.6% |
| Net profit margin | 9.2% | 10.3% | 10.6% | 7.0% | 5.7% |
| Year | Book value per share | Price/Earnings Ratio |
|---|---|---|
| 2023 | 24.61 | 20 |
| 2022 | 23.13 | 18 |
| 2021 | 23.15 | 17 |
| 2020 | 21.40 | 16 |
| 2019 | 20.86 | 20 |
Revenues:
Revenues from the main activities of GASCO and its subsidiaries, geographical analysis, and its impact on the company’s business volume and its contribution to the results: (in thousands of riyals)
| Product | Activity revenues | Ratio |
|---|---|---|
| Sale of gas | 2,279,347 | 92.74% |
| Sale of cylinders | 70,786 | 2.88% |
| Sale of tanks | 20,210 | 0.82% |
| Sale of fittings and other works | 3,066 | 0.12% |
| Other income | 18,246 | 0.74% |
| Scrap revenue | 6,941 | 0.28% |
| Rental of cages | 6,102 | 0.25% |
| Commercial projects | 53,215 | 2.17% |
| Total | 2,457,913 | 100.0% |
Revenues for 2023 and 2022 after deducting sales returns according to the following geographical distribution: (in thousands of Riyals)
| Location | 2023 | 2022 |
|---|---|---|
| Riyadh | 623,904 | 517,440 |
| Jeddah | 512,175 | 448,067 |
| Dammam | 398,258 | 327,245 |
| Abha | 284,841 | 255,517 |
| Qassim | 256,683 | 224,028 |
| Al Madinah | 220,014 | 202,344 |
| Taif | 104,592 | 91,658 |
| Transportation | 4,231 | 10,520 |
| Public administration | 53,215 | 3,389 |
| Total | 2,457,913 | 2,080,209 |
/ Financial Results
Maximizing
Stakeholder
Benefit
The financial management at the National Gas and Industrialization Company (GASCO) has been keen on aligning its financial strategies with the ambitious goals of Vision 2030.
To achieve this, the management worked with a wide range of stakeholders, including internal ones, aiming for financial growth and sustainability.
Through its financial strategy, the financial management played a crucial role in reducing expenses, increasing profit margins, and diversifying investments. These efforts have directly contributed to tangible results on operating profits.
/ Financial Results
2023
Achievements
The Finance Division achieved key milestones in the past year, including the completion of the second phase of E-invoicing and a smooth transition to the go-live stage, marking a significant step in digitizing our financial processes.
The thorough VAT examination by ZATCA Authority for the years 2021-2022, spanning nine months, concluded without violations or financial fines.
In order to strengthen financial commitment, zakat estimates were settled from 2005 to 2007 and from 2014 to 2018.
The final reports for these years were also obtained, which contributed to achieving positive results for the strategic financial approach.
Other improvements were also made to develop efficiency, including converting the quantity unit received from Aramco to improve compliance and connectivity with it.
This helped to strengthen the gas inventory control process and improve the company’s performance in this area.
The Finance Division remains committed to maximizing value for stakeholders, ensuring financial decisions align with the broader objectives of GASCO, and contributing to the stability of liquefied petroleum gas supply across the Kingdom.
/ Financial Results
Improving operating profits
The Finance Division takes pride in raising operational efficiency across branches, central workshops, and transport operations. Our work directly contributes to improved operating profits, showcasing the division’s impact on the bottom line.
Our core focus is on sustainable financial practices, ensuring that the benefits de-rived are not only immediate but contribute to the long-term sustainability and growth of the business.
The Finance Division remains committed to maximizing value for stakeholders, ensuring financial decisions align with the broader objectives of GASCO, and contributing to the stability of liquefied petroleum gas supply across the Kingdom.
/ Financial Results
Vision 2030
The Finance Division supports GASCO’s journey to become an industry leader by leveraging the Kingdom’s strengths. This aligns with Vision 2030’s vision of transforming the Saudi economy and achieving leadership in various divisions.
/ Financial Results
Transparent
Financial
Reporting
The division is committed to operating with transparency in the business’s financial reporting. GASCO’s financial statements accurately reflect the company’s position, performance, and cash flows. This commitment fosters trust among stakeholders.
/ Financial Results
Gas Solutions
Gas Solutions achieved a 67% increase in revenue, realizing a net income of 51% for 2023, as the com-pany worked on several Iconic projects such as:
Aramco Residential Complex – Dhahran-Designed & executed the EPC Contract for the LPG tank farm area in 80 days.
King Khaled airport Airport – Won GS first Fuel Hydrant System.
Misk City – Designed and currently executing GS first EPC project.
Subsidiary Companies:
Gas Solutions Company: A wholly-owned subsidiary (single-owner company) with a commercial registration number (1010693275) and a capital of 5,000,000 Saudi Riyals. It specializes in the construction, building, and maintenance of liquefied petroleum gas (LPG) networks and tanks, as well as the development of LPG products and solutions.
Best Gas Carrier Company: A wholly-owned subsidiary (single-owner company) with a com-mercial registration number (1010851646) and a capital of 25,000,000 Saudi Riyals. The company’s main activity is wholesale gas distribution.
National Transport Company: A wholly-owned subsidiary (single-owner company) with a commercial registration number (1010851708) and a capital of 50,000,000 Saudi Riyals. The company’s main activity is transportation.
National Gas Supply Company: A wholly-owned subsidiary (single-owner company) with a commercial registration number (1010882359) and a capital of 10,000 Saudi Riyals. The company’s main activity is retail gas sales.
National Storage Company: A wholly-owned subsidiary (single-owner company) with a commercial registration number (1010924126) and a capital of 300,000,000 Saudi Riyals. The company’s main activity is gas storage and filling gas cylinders.
/ Financial Results
Investment in Associate
Companies:
Companies into which GASCO owns 30% or more of its Capital as follows:
Saudi Gas Cylinders Factory
The Saudi Gas Cylinders Factory was established in Riyadh, Saudi Arabia, according to the Companies Law and the commercial registration number (1010029561) on 30/04/1400 AH. The factory’s activity involves the manufacturing of gas cylin-ders under Industrial License number (682/S) dated 15/05/1418 AH. The company was converted from a limited liability company to a closed joint-stock company based on Ministerial Decision number (239/Q) dated 14/07/1430 AH. The company’s authorized and subscribed capital is 92 million Saudi Riyals, divided into 9,200,000 ordinary shares with a value of 10 Saudi Riyals per share. The Gas and Industrial Manufacturing Company owns 3,455,980 shares, representing 37.57% of the company’s capital. The company has not issued any debt instruments.
| No. | Activity description | Activity Revenues (in thousand of riyals) |
Ratio | Main center |
|---|---|---|---|---|
| 1 | Sales of gas cylinders | 65,459 | 85% | Riyadh |
| 2 | Sale of gas cylinders | 11,907 | 15% | Riyadh |
| Total | 77,366 | 100% | ||
Natural Gas Distribution Company in Riyadh - a
Saudi listed joint stock company:
Natural Gas Distribution Company was established as a limited liability company on 15/04/1421 AH (corresponding to 17/07/2000 AD), with a capital of fifteen million (15,000,000) Saudi Riyals divided into (15,000) cash shares of equal value, each share worth (1,000) Saudi Riyals, and registered in the Commercial Register No. (1010160762) dated 20/05/1421 AH (corresponding to 20/08/2000AD) issued in the city of Riyadh. On 28/11/1430 AH (corresponding to 16/11/2009 AD), the partners unanimously decided to approve the transformation of the company from a limited liability company to a closed joint stock company and increase its capital from (15,000,000) SAR to (50,000,000) SAR divided into (5,000,000) ordinary shares, the value of each share is (10) SAR, The company was registered in the Register of Joint Stock Companies by Ministerial Resolution No. (30/Q) dated 25/01/1431 AH (corresponding to 11/01/2010 AD) and Ministerial Resolution No. (53/Q) dated 19/02/1431 AH (corresponding to 03/02/2010 AD), and by Commercial Register No. (1010160762) dated 20/05/1421AH (corresponding to 20/08/2000 AD) issued in Riyadh. On 01/01/1442 AH (corresponding to 20/08/2020 AD), the remain-ing SAR 25,000,000 of the company’s capital was called, where the shareholders subscribed for 2,500,000 ordinary shares with a nominal value of (10) SAR per share.
Natural Gas Distribution Compan – Listed Saudi Joint-Stock Company.
| No. | Activity description | Activity revenues | Ratio | Main center |
|---|---|---|---|---|
| 1 | Sales of gas cylinders | 91,914 | 100% | Riyadh |
East Gas Company - a closed Saudi Arabian company:
East Gas Company was established in the city of Dammam, Saudi Arabia, as a limited liability company under Commercial Registration No. 2050048153 issued in Dammam on 2 Rabi Al-Awwal 1426 AH, corresponding to 10 May 2005 AD. The company has a branch operating under Commercial Registration No. 2050104225 dated 26 Safar 1436 AH, corresponding to 18 December 2014 AD. In 2022, the shareholders decided to convert the company from a limited liability company to a closed joint-stock company. The company obtained ministerial approval to officially announce the conversion on 14 Rajab 1443 AH, corresponding to 15 February 2022 AD. The company’s capital is 40 million Saudi riyals divided into 4 million shares. GASCO owns 1,400,000 shares, representing 35% of the company’s capital. The company’s activities include oil and gas pipeline extension, manufacturing of electricity, gas, or water meters, distribution of gas fuels through pipelines, operation of the dry gas distribution network under License No. S-T-5 issued on 9 Shaban 1436 AH, corresponding to 13 September 2005 AD, by the Ministry of Petroleum and Mineral Resources (currently the Ministry of Energy).
The company is also engaged in maintenance and operation of industrial facilities, purchase of dry gas from Saudi Aramco or other suppliers, and wholesale trade of gas equipment and machinery. The company has two agreements with Saudi Aramco for a duration of twenty years, governing the supply of gas for the dry gas distribution network in the Second Industrial City of Dammam and the operation and maintenance of the gas sales meter transfer facility, in accordance with the terms and conditions of the agreements. The company operates fuel production operations (refinery products) under License No. 411102104884 issued on 27 Shawwal 1441 AH, corresponding to 19 June 2020 AD, by the Ministry of Industry and Mineral Resources. The registered address of the company is P.O. Box 15662, Second Industrial City, Dammam 31454, Saudi Arabia.
| No. | Activity description | Activity revenues | Ratio | Main center |
|---|---|---|---|---|
| 1 | Maintenance and operation of the dry gas distribution network |
99,044 | 100% | Dammam |
Company’s Investments:
Industrial Gases Company (Gas):
Gas is a Saudi limited liability company registered in Saudi Arabia under Commercial Registration No. 2055001171 dated 24 Rajab 1403 AH, corresponding to 7 May 1983 AD. The company commenced its commercial operations on 1 August 1985 AD. The main activity of the company is the production and distribution of industrial gases for various major industries. The company’s capital is 248 million Saudi riyals, divided into 248,000 shares. It is a subsidiary of Saudi Basic Industries Corporation (SABIC), which owns 70% of the capital, and GASCO owns 9% of the capital.
Arab United Float Glass Company:
Arab United Float Glass Company is registered as a closed Saudi joint-stock company under Ministerial Resolution No. 157 dated 2/6/1427 AH, corresponding to 28/6/2006 AD. It is registered in Saudi Arabia under Commercial Registration No. 1010221369 issued in Riyadh on 20/6/1427 AH, corresponding to 16/7/2006 AD. The company’s activities include wholesale and retail trade of the company’s products, import and export operations, acquisition of buildings and real estate, construction of buildings, float glass manufacturing, research and production for the glass industry’s needs. The company’s capital is 243 million Saudi riyals, consisting of 24,325,147 ordinary shares. GASCO owns 2,677,819 shares, representing 11.01% of the capital
/ Financial Results
Other
investments
The company’s other investments are concentrated in investing in cash funds, Murabaha, and investing in fixed income instruments, in addition to stock investment funds, etc.
| Property | City | Space in sq meters | Net Book Value in 31 Dec. 2022 |
|---|---|---|---|
| King Fahad Road - crossroads Musa Bin Nusair Street - Al Aqar |
Riyadh | 14,912 | 25,164,160 |
| King Fahad Road Street Intersection Imam Faisal bin TurkiAl Aqar |
Riyadh | 790 | 2,021,693 |
| Sulamaniya, Abu Bakar Al Razi Street |
Riyadh | 6,750 | 3,510,000 |
| Al Marba Street | Riyadh | 714 | 1,427,320 |
| Al Marba Street | Riyadh | 800 | 668,000 |
| Al Dahi Street | Qassim | 20,000 | 441,000 |
| Ha'il / South | Ha'il | 90,000 | 210,000 |
| TOTAL | 33,442,173 | ||