Aldrees Petroleum and Transport Services announced today that it has signed a contract with Maaden Waad Al Shamal for Phosphate (60%-owned by Maaden, 25% by The Mosaic Company & 15% by SABIC) for truck transport of molten sulphur and phosphoric acid. The contract is effective from 1 December 2016 for four years and has a maximum total value of SAR597mn (cSAR150mn per annum over 2017-20e).   We view the news positively as it improves visibility of the high-margin transport segment, which has been a drag on the company’s performance lately due to lesser contracts and margin pressure on higher diesel costs with limited pass-through ability. The contract represents nearly half of our transport segment forecasts over 2017-20e. It is still unclear if the contract’s margins are favourable though. We will provide more details as they come along. (Company disclosure, Hatem Alaa, Nada Amin)   Aldrees: SAR25.46 as of 18 October 2016, Rating: Buy, FV: SAR49.50 per share, MCap: USD272mn, ALDREES AB / 4200.SE