National Gas & Industrialization Co or GASCO is an Arab company that distributes and sells liquefied petroleum gas. The company's activity is the sale and transportation of gas, installation, refueling, sale of cylinders and empty tanks.
In addition to the sale of propane-butane gas, GASCO also produces chemicals and petroleum products. The organization’s work also includes the maintenance of gas networks and units. The company also participates in the creation of projects aimed at energy development and water treatment.
GASCO Joint Stock Company appeared through the merger of the gas company and its two branches and was registered in 1963. National Gas & Industrialization Co owns a network of gas stations and vehicle fleet.
In 2018, the company signed a contract with the Saudi factory Enagas, which produces gas cylinders, for 130, 06 million riyals. In the same year, the company received a loan from the Saudi Industrial Development Fund (SIDF) of 203 million riyals. National Gas & Industrialization Co uses the loan to implement new gas pipelines, gas processing, packaging and distribution sites with a production capacity of 750,000 tons. In connection with these events, in 2018, GASCO shares rose 0.19%.
To find out how profitable the stocks of a company are, you need to rely on the company's growth indicators. An analysis of Infront Analytics indicates that National Gas & Industrialization Co has an N/A rating in 2019. This means that GASCO has slow growth compared to other gas firms.
Another significant measure is the ratio of a company's value to its pre-tax profit. It demonstrates how an organization is undervalued or overvalued compared to others in the industry. Therefore, the well-known EV/EBITDA ratio is often used for business analysis.
The ratio of the value of the company to its profit before taxes more accurately indicates the capabilities of the company than the rate of the price of a share to benefit. This is because it takes into account not only the indicator of the net operating profit of the enterprise but also the indicator of the total value of the company. The latter includes financial debt, cash position, and minority interests, which are vital in assessing the market value of an organization.
Infront Analytics concluded that National Gas & Industrialization Co's EV/EBITDA ratio is much lower than the average for similar companies; lower than the industry average and significantly lower than the historical five-year average of GASCO.
In reports for 2018, National Gas & Industrialization Co writes about an 8% decline in profits. In total, the profit amounted to 117.14 million riyals, but last year the benefit was higher - 127.34 million SAR. The company explains the decline in earnings with a decrease in sales of gas and cylinders and with an increase in administrative, general, and marketing expenses.
In 2018, revenue fell 4.5% to 1.9 billion riyals. Last year, it amounted to 1.99 billion riyals. Operating profit fell 34% to 99.08 million riyals, while earnings per share were 1.56 riyals.
In the first three months of 2019, National Gas & Industrialization Co managed to increase its profit by 120, 9%; thus, net profit amounted to 85.79 million riyals. In the same period last year, the profit amounted to 38. 83 million rials. However, the company's total revenue decreased by 47.48% and amounted to 493.88 million riyals in the first three months of 2019. Earnings per share in the first quarter of 2019 reached 1.14 SAR.
In the fall of 2019, National Gas & Industrialization Co will distribute quarterly dividends in the amount of 16, 87 million riyals for the whole year.
We believe that the company will still find a new way to increase revenues and improve its competitiveness so that shareholders of National Gas & Industrialization Co remain loyal to the company. Therefore, traders need to monitor the news about the company carefully and take timely measures in the direction of winning positions.