/ Corporate Development:
The division’s commitment to contributing
to the company's growth is clearly represented in the strategic projects and initiatives it launches.
By focusing on efficiency and quality, the division ensures that projects are delivered on time and within budget, and safety remains a fundamental element in everything it does, which reflects the company’s core principles and values.
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Comprehensive Development Strategy
The Division plays a pivotal role in shaping and implementing the company's longer-term. In 2023, this has focused on supporting the structural changes that will equip the business to step into a changing future and thrive.
This included the separation of the transportation division, ongoing preparations for bulk distribution division separation, and the initiation of the storage and refilling division separation.
GASCO's strategy revolves around seamless integration between active investment in the gas division, environmental preservation, and the pursuit of being the leading gas solutions company in the Middle East, which leads the growth of the division towards excellence and high quality for its customers, providing sustainable value for its shareholders, caring for the environment and society, and effectively contributing to the economy of the Kingdom and a healthy work environment for its employees, and a firm belief in continuous development through forming strong partnerships in a fair competitive environment.
The company launched a comprehensive development strategy in 2017, comprised of four transformative programs:
Operational Excellence Program: Focused on making GASCO a hub of excellence, supporting development, innovation, and providing smart solutions for sustainable supply and operational efficiency.
Trade Transformation Program: Aiming to offer top-notch services in a competitive market to achieve the highest levels of customer satisfaction.
Digital Transformation Program (Aafaq): Geared towards automating procedures and processes across all company divisions.
Human Capital Transformation Program: Intended to enhance the efficiency and capabilities of employees, attract national talent, and contribute to the development process.
In 2023, GASCO invested over half a billion riyals in projects to enhance facilities, including security and safety systems, infrastructure development, storage capacity increase, and fleet modernization.
Initiatives to improve service and customer satisfaction involved providing high-value products, technical solutions, and direct communication with customers.
In preparation for opening the market to competition according to the executive regulations of the dry gas distribution system and the distribution of LPG for residential and commercial purposes, Gasco has developed a transformation strategy until the end of 2023 to prepare the company to separate the main activities according to the value chain of the LPG division and transform each activity into an independent company.
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Achievements
During 2023, the Corporate Development team executed essential ini-tiatives, including building strategic partnerships, exploring new portunities, and maintaining existing alliances.
This included signing memorandums of understanding with several local and international companies, building the relationships and partnerships that will underpin the next phase of our success.
The strategic approach that is led by the Corporate Development Team has helped drive the transformation of the business. Following a period of declining revenues, the implementation of a new strategy has led to an upturn in sales and revenues (fig 1).
This has supported the achievement of a 66% increase in net income from 2020, de-livering value to GASCO’s shareholders, stakeholders, value to GASCO’s shareholders, stakeholders, and customers
/ FIG. 1
Strategic Impact 2021-2023 Operational Profit
(Million SAR)
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Memorandums of Understanding (MOUs) for Growth
To achieve strategic objectives, GASCO has signed and extended MOUs with local and international companies, including:
Extension with Bahri Company: Discussing potential partnership for a land transport and logistics company.
Egypt Gas Company: Establishing a framework for collaborative activities and knowledge exchange.
Signing a memorandum of understanding with the Saudi International Ports Company to benefit in the areas of cooperation in GASCO transportation services at King Abdulaziz Port and container transportation services between storage yards in the Eastern Province.
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Major Projects
The completion of nine major projects show-cased the division's prowess, from expanding LPG storage capacity to implementing ad-vanced security systems. The total budget for these projects amounted to SAR 181 million, with efficient delivery resulting in operational savings of SAR 4 million.
Five major projects were closed this year with a project comple-tion rate that exceeded 90%:
Expansion of LPG Storage Capacity Phase I
Development of the integrated security system for the company's branches in Medina and Qasim.
Passive defense at Khamis Mushayt station.
Air conditioning of the production halls.
Alarm and fire fighting system at the Riyadh, Medina and Taif stations.
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Vision 2030
A key function of the Corporate Development Division is ensuring that the company’s strategy and approach aligns with Vision 2030. This relates to supporting the development of the capability of the Saudi Arabian logistics division, embracing digital technology, and focusing on support-ing households and SMEs in the Kingdom by providing a reliable source of energy
The business is also focusing on ensuring that there are re-warding career pathways for the Saudi people, with several ini-tiatives to develop Saudi skills, aligning with Vision 2030's core principles. By empowering young Saudi men and women, Corporate Development actively supports the broader goals of Vision 2030 and is a core partner with others in assisting the transformation of Saudi Arabia.