Gasco: Comprehensive Analysis of the Gas and Manufacturing Stock

Gas and Manufacturing Company (Gasco) was established as a Saudi joint-stock company with the aim of processing natural gas and extracting key products such as propane, butane, ethane, and liquefied petroleum gas (LPG), distributing them to industrial, commercial, and residential sectors. Gasco is not just a gas supplier; it represents a vital link between oil fields and Saudi industries, playing a crucial role in supporting the national supply chain for petrochemicals and energy. The company also contributes to driving economic development by providing energy to various industries such as aluminum, petrochemicals, agriculture, and transportation, while supporting the national transition towards clean energy.

The Sidra Group (in partnership with National Industrialization Company, SABIC, and Technip) holds the largest stake in Gasco, enhancing its strategic relationships with major players in the Saudi energy sector. Gasco is listed under the chemicals and energy sector in the Saudi financial market, making it a key element in the Kingdom's Vision 2030 to diversify income sources and support manufacturing industries. Through its partnerships and extensive experience, Gasco has expanded its innovative gas solutions and infrastructure development, maintaining its position as a leading local company in the energy and chemicals sector.

Gasco's operations revolve around processing natural gas and extracting its products, focusing on the production and marketing of liquefied petroleum gas (LPG), a mixture of propane and butane, in addition to by-products such as ethane, industrial fuel gas, and acetic acid. These products are used in a wide range of applications: from operating industrial generators, heating systems in residential and commercial facilities, to serving as raw materials in petrochemical and agricultural industries.

Gasco aims to meet the growing demand for gas in the Kingdom, as its activities are linked to the development of Saudi industries and the diversification of energy uses. The company has enhanced its capabilities by establishing modern gas processing and storage facilities, expanding its distribution network, and reaching new areas. Gasco has also entered into strategic partnerships with local and international companies to develop new production lines for industrial gases, such as nitrogen and hydrogen, as well as joint projects in logistics and gas storage.

Gasco features a strong and flexible ownership structure, with the Sidra Group (comprising National Industrialization Company, SABIC, and Technip) holding the largest share of the stock, providing the company with strategic support in business management and supply provision. Government ownership and public institutions represent the largest proportion of shareholders, while the remaining shares are traded in the Saudi financial market among individual and institutional investors.

In 2025, Gasco underwent a strategic transformation in its structure, following a vote by the general assembly to convert it into a holding company and establish specialized subsidiaries in LNG, logistics, and energy services. This transformation aims to enhance management flexibility, support expansion in local and global markets, and attract new investments. A new board of directors was also elected, comprising diverse expertise in energy and manufacturing sectors.

Updated financial data indicates that Gasco achieved a market value of approximately 6.11 billion Saudi Riyals (November 2025), with a share price hovering around 84 Saudi Riyals. The number of issued shares is about 72.7 million shares. In recent months, the monthly trading volume has been approximately 77 million shares, with a total trading value nearing 6.2 billion Riyals, and a total number of transactions for the quarter reaching 953,000 transactions.

In terms of profitability, the price-to-earnings (P/E) ratio is estimated at around 30-35 times, which is a medium to high ratio compared to some companies in the industrial sector. The cash distribution yield for 2024 was over 2 Riyals per share annually, equivalent to an annual yield ranging between 1–2% on the current share price.

The company's results for the third and fourth quarters of 2024 showed significant growth in revenues and net profit, with annual net profit reaching around 250 million Riyals, representing an annual growth exceeding 20% compared to 2023. This performance is attributed to increased domestic and international demand for LNG and the success of the company's expansion strategy.

Gasco adopts a sustainable cash dividend policy, which is reflected in its announcement of recurring cash distributions over the past few years. In 2024, total dividends exceeded 2 Riyals per share (distributed in two payments), totaling more than 160 million Riyals.

These distributions reflect management's confidence in the stability of cash flows and the company's financial performance, attracting a segment of investors who prefer investing in companies with regular income. Although the annual distribution yield ranges between 1–2% depending on the share price, this distribution is considered an indicator of the company's strong financial position. Gasco is keen to regularly disclose the board's decisions regarding distributions and clarifies to shareholders the impact of these distributions on the company's financial position.

Gasco's stock has experienced moderate fluctuations during 2024 and 2025, with the share price reaching above 90 Riyals at certain times, before stabilizing at around 84 Riyals by the end of 2025. The stock's performance is linked to several factors, including global oil and gas price movements, developments in the Saudi financial market, and the overall performance of the industrial sector.

Gasco's stock attracts investor interest due to the company's position in the gas sector and its role in the value-added chain of the Saudi industry. Trading on the stock is relatively active, with an average monthly trading volume estimated in the tens of millions of shares, reflecting good liquidity.

It is noteworthy that the stock price is influenced by the company's announcements regarding its financial results, dividend distributions, and any strategic developments related to expansion or new partnerships. Monitoring the company's quarterly and annual reports remains essential for understanding the motivations behind stock movements.

The gas and petrochemical sector is one of the pillars of the Saudi economy, relying on it to operate heavy industries, support the energy sector, and provide raw materials for many manufacturing industries. Gasco plays a pivotal role in this sector, being one of the largest suppliers of LNG in the Kingdom.

The sector witnesses stable demand for gas products due to the diversity of their uses, whether in the industrial or residential sectors. It also enjoys support from government policies aimed at diversifying energy sources and increasing reliance on gas for clean energy generation.

Companies in the sector face challenges related to fluctuations in global oil prices, competition with major companies, and the ongoing need to develop infrastructure. However, Gasco has managed to maintain its position through investment in expansion projects and developing strategic partnerships with major players in the sector.

Gasco faces competition from major companies in the gas and petrochemical sectors, including National Industrialization Company (Sidra), SABIC, and Saudi Aramco (associated gas units), in addition to other gas distribution companies such as Eastern Exploration Company and industrial gas companies like Oxygen Gas Industries.

Competition is focused on processing efficiency, selling prices, and the quality of distribution services. Gasco is distinguished by its extensive distribution network and large customer base, giving it a competitive edge in the local market. The company is also constantly striving to develop new production lines that meet market needs and build partnerships with strategic clients in industrial and residential sectors.

In November 2025, Gasco's general assembly approved a plan to transform the company into a holding entity and establish specialized subsidiaries in areas such as LNG, logistics, and industrial energy. This transformation aims to enhance business management flexibility, support expansion in markets, and facilitate the attraction of local and foreign investments.

This transformation could enable Gasco to make quicker decisions and adopt a more integrated business model in the energy sector, in addition to enhancing integration with the activities of major shareholders. The establishment of specialized subsidiaries may also help in developing new products, entering new markets, and improving operational efficiency by focusing on specific areas of work.

During 2024 and 2025, Gasco entered into several agreements with local and international companies to expand its activities in industrial gas production and develop gas transport and storage solutions. Among these projects is a partnership with the Red Sea Company to establish a joint venture specializing in gas-based energy, and expanding liquefaction and storage facilities to enhance productivity.

Gasco has also invested in new production lines for acetic acid and the extraction of industrial gases, in line with the increasing demand in the local and international market. These expansions aim to achieve sustainable growth in revenues and profits, focusing on innovation and developing high-value-added products.

Gasco faces several challenges, the most prominent of which are fluctuations in global oil and gas prices, competition with major companies, and the ongoing need to develop infrastructure to meet increasing demand. Government policies on energy pricing and market regulation also affect profit margins.

On the other hand, promising opportunities are emerging for the company, such as expanding into clean energy products, increasing reliance on gas in heavy industries, and benefiting from Vision 2030 projects to develop the energy sector. Additionally, the transformation into a holding company allows for more flexibility in project management and expansion into new local and international markets.

Gasco's news and financial reports can be followed through accredited official platforms such as the Saudi Stock Exchange (Tadawul) website, Argaam platform, the company's official website, and local press reports. The company regularly publishes its financial disclosures, quarterly and annual results, and any strategic decisions or dividend distributions.

It is always recommended to rely on official sources for the latest information regarding the company's performance and developments that may affect the stock. Reviewing the annual and quarterly management reports provides an in-depth view of the company's strategies and future plans.

While the information and analyses provided about Gasco offer a deep understanding of its business nature and performance in the Saudi financial market, making any investment decision requires a personal and thorough study of the investor's financial circumstances and investment goals.

Market conditions and factors affecting company performance change continuously, making it imperative to consult a licensed financial advisor before investing in any stock, including those in the energy and gas sector. A financial advisor provides specialized analysis tailored to each investor's needs and helps assess risks and opportunities based on financial data and future forecasts.