Quality Industrial Corp. (QIND) reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024. The company generated revenues of $11.2 million, a substantial increase from $0 in the previous year, primarily due to the acquisition of Al Shola Al Modea Gas Distribution LLC (ASG) on March 27, 2024. ASG contributed $14.3 million in revenue for the period from April 1 to December 31, 2024, marking a 31.1% increase compared to its revenue of $10.8 million in 2023. The net income for QIND was reported at $266,780, a turnaround from a net loss of $4.2 million in the prior year.
The acquisition of ASG has been a pivotal strategic development for Quality Industrial, enhancing its position in the liquefied petroleum gas (LPG) industry in the UAE. ASG, established in 1980, is recognized as a leading supplier and contractor for LPG centralized pipeline systems, approved by the General Directorate of Civil Defense in Dubai. The integration of ASG is expected to bolster QIND's operational capabilities and market share in the energy sector. However, the company faced challenges with the termination of a planned acquisition of Quality International Co. Ltd. due to unsuccessful negotiations.
Operationally, Quality Industrial has seen an increase in its workforce, with approximately 120 employees at ASG and 6 at the parent company. The company operates a fleet of 56 delivery trucks, distributing over 20,000 LPG cylinders monthly, and has expanded its bulk LPG distribution to over 500,000 liters per month. The company’s total current assets rose to $7.5 million, while current liabilities increased to $11.4 million, resulting in a working capital deficit of $3.9 million. This deficit reflects the ongoing need for capital to support operational growth and expansion plans.
Looking ahead, Quality Industrial aims to enhance its operational efficiency and expand its market presence through strategic investments in its subsidiary, ASG. The company plans to invest in new vehicles to improve bulk LPG supply capabilities and expects to see an increase in both revenue and operating expenses as it implements its expansion strategy. Management remains focused on generating sufficient revenues and raising capital to ensure the company's continued growth and operational viability.
About Quality Industrial Corp.
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