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FINANCIAL NEWS
Dubai’s ENOC plans to set up 40 petrol stations in Saudi Arabia
29 Aug 2012
(MENAFN) Emirates National Oil Company (ENOC) unveiled plans to set up 40 petrol stations and retail outlets across Saudi Arabia through its joint venture with the Kingdom’s Aldrees Petroleum & Transport Services Company, Arabian Business reported.
Dubai state-owned company, which is seeking to offset its losses at home, will inject USD12 million as start-up capital together with Aldrees.
ENOC Retail’s managing director Burhan Al Hashemi said the company sees good margins from prices in Saudi, and is looking to make money from non-fuel services like the car wash and car maintenance.
The expansion plans in Saudi Arabia are unlikely to have a significant impact on ENOC’s overall revenues but could have a positive impact in the long-term, he added.
ENOC and three other competitors in the UAE have been struggling with significant losses due to the increasing gap between fuel prices and the heavily subsidized cost at the pump.
Last year, ENOC closed several stations in Sharjah and Ras Al Khaimah, forcing drivers to queue for hours at rival petrol provider Emarat’s stations.
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