Natural Gas Distribution Company

Natural Gas Distribution Company (9516), listed on the Saudi Exchange, is a regulated utility provider specializing in the distribution of natural gas to residential, commercial, and industrial customers in Saudi Arabia. The company operates under a concession from the Saudi government, focusing on building and maintaining gas distribution networks. Its core activities include gas supply, metering, and network maintenance, ensuring reliable energy delivery to end-users.

The company generates revenue primarily through gas sales and distribution tariffs, with income tied to the volume of gas delivered and fixed connection fees. Its business model is capital-intensive, requiring ongoing investment in pipeline infrastructure. Key financial metrics show a market cap of SAR 140 million, with a price-to-sales ratio of 0.94 and an EV/EBITDA of 13.63. The company maintains low leverage, with debt of SAR 7.42 million against cash of SAR 17.31 million.

Operating in the regulated gas utilities sector, the company benefits from stable demand and government support, but faces competition from alternative energy sources like electricity and oil. Its gross margin of 7.52% reflects the capital-heavy nature of the industry, while a profit margin of 5.13% indicates moderate profitability. Recent growth has been strong, with revenue up 32.5% year-over-year and earnings surging 136.9%, suggesting expanding operations or improved efficiency.

The company serves a diverse customer base, including households, commercial entities, and industrial users across Saudi Arabia. Its geographic focus is domestic, with operations concentrated in regions where natural gas infrastructure is developed. As a regulated utility, its customer relationships are long-term, and demand is relatively inelastic, providing revenue stability. The dividend yield of 1.79% offers modest income to shareholders.

An auto-generated descriptive profile based on company data, for informational purposes only.