CEO INTELLIGENCE — SITUATION BRIEF
Good morning, Mr. AlFaqeeh.
Capital governance is intact and the fleet is not generating board-level exposure today, but a compliance concentration of 258 units inside the 7-day window creates contract risk at client sites that will not surface until a penalty is triggered. The pattern is organisational; document renewal is running behind the expiry curve because no single accountability line exists between the compliance function and the operations teams that move the assets, and the COO has not been held to a clearance standard. Require the COO to report compliance queue status weekly until the 7-day list reaches zero, and make clear that contract penalties arising from lapses will be charged to the operations account.
Monthly Burn
SAR 15.4M
SAR 184.2M / year
▼ 4% QoQ
Productive 79% Waste 21%
Fleet Health
86% 0 50 100
Well Governed
Utilisation 88%
Compliance 89%
Iron Law 81%
Maintenance 87%
Idle Waste 88%
Operators 87%
→ Stable
Fleet Status
2,512
TOTAL
Active 2,210 (88%)
Idle 126 (5%)
Breakdown 176 (7%)
Ownership Split
2,512
TOTAL
Company 1,608 (64%)
Rental 528 (21%)
Lease 376 (15%)
Asset Age
2,512
TOTAL
0-3 yrs 409 (16%)
4-7 yrs 910 (36%)
8-12 yrs 946 (38%)
13+ yrs 247 (10%)
Capital at Risk/Mo
SAR 2.6M
305 Iron Law assets
▼ 1% 7d▲ 4% QoQ
Compliance Exposure
SAR 5.1M
530 assets expired docs
▲ 10% QoQ
Rental Idle Waste/Mo
SAR 286K
43 assets, zero output
▲ 48% 7d▼ 10% QoQ
Recoverable (12mo)
SAR 19.8M
3 levers, board approval
Annual Run Rate
SAR 184.2M
flat-line no action
247
Operating Illegally
Assets — expired docs
Regulatory exposure now
295
Value Actions
Ranked by net 12mo impact
SWAP · TERMINATE · DISPOSE
SAR 29.0M
/ year
Recoverable
Recurring opex only
Execution cost SAR 19K
SAR 21.1M
one-time
Liquidation
Salvage proceeds — separate
Not blended into recurring
02 — Capital Risk & Lifecycle Intelligence
Iron Law — Annual Cost vs Market Value by Equipment Type
When red bar exceeds green: asset must be replaced. No exceptions.
■ Annual Cost ■ Market Value
Fleet Age Profile by Equipment Type
Sorted by critical age (8yr+). Red concentration = replacement programme urgency.
■ 0-3yr ■ 4-7yr ■ 8-12yr ■ 13+yr
TCO Dispose Candidates
338
Age >7yr + cost >MV + idle/breakdown
Annual Carry Cost
SAR 33.9M
Pure liability — zero productive output
Iron Law Assets
305
SAR 559K/mo saving on lease conversion
Fleet at Critical Age (8yr+)
1193
47% of fleet — Saudi conditions accelerate degradation
03 — Waste & Recovery Map
Total 12-Month Recoverable Value
SAR 19.8M
Liquidation + Rental Exits + Swap Savings + Iron Law Conversions
Monthly Waste
SAR 3.3M
21% of total burn non-productive
Spend Composition
● Productive79%
● Rental Waste2%
● Owned Idle11%
● Ghost/Leakage8%
Recovery Levers — 12-Month SAR Impact
6-Month Savings Curve — Flat vs Action Taken
— No Action — Actions Executed
ACTION 1 THIS MONTH
Approve Asset Replacement Programme
SAR 6.7M
305 assets past economic life — SAR 559K/mo savings on lease conversion.
ACTION 2 IMMEDIATE
Terminate Idle Rental Contracts
SAR 3.4M
43 rental assets idle — SAR 286K/mo zero-output spend. 30-day notice.
ACTION 3 60 DAYS
Activate Internal Swap Programme
SAR 218K
18 rentals replaceable with idle company assets. COO executes, CFO approves.
ACTION 4 90 DAYS
Execute Liquidation Register
SAR 9.4M
Bottom 15% fleet — SAR 9.4M capital recovery + SAR 24.9M/yr cost freed.
ACTION 5 60 DAYS
Ghost Fleet Audit & Resolve
SAR 651K
12 assets active with no mobilisation record — 6-month untracked exposure.
04 — 90-Day Decision Register & Board Risk Register
Decisions Requiring CEO Authority
0-30d
Approve Asset Replacement Programme
305 assets past economic life — SAR 559K/mo savings on lease conversion.
SAR 6.7M
impact
0-14d
Terminate Idle Rental Contracts
43 rental assets idle — SAR 286K/mo zero-output spend. 30-day notice.
SAR 3.4M
impact
30-60d
Activate Internal Swap Programme
18 rentals replaceable with idle company assets. COO executes, CFO approves.
SAR 218K
impact
60-90d
Execute Liquidation Register
Bottom 15% fleet — SAR 9.4M capital recovery + SAR 24.9M/yr cost freed.
SAR 9.4M
impact
30-60d
Ghost Fleet Audit & Resolve
12 assets active with no mobilisation record — 6-month untracked exposure.
SAR 651K
impact
Total 90-Day Impact SAR 20.4M
Board Risk Register — Probability × Financial Impact
Dot size = SAR exposure. Top-right quadrant = act now.
Idle Rental Waste
Iron Law Capital Burn
Compliance Void
Ghost Fleet Audit
TCO Dispose Carry
Over-Market Rentals
05 — Trend Intelligence
Fleet Health
30-day trend
Stable
Monthly Cost
30-day trend
Stable
Idle Count
30-day trend
Stable
Iron Law Flags
30-day trend
Stable
Fleet Health Score — 30 Days
Cost Trajectory — 30 Days + 3-Month Forward
— Total Cost — Depreciation -- M+1 · M+2 · M+3 Projection
Idle & Breakdown Count — 30 Days
— Idle — Breakdown
Iron Law Flags — 30 Days
— Iron Law Count -- Threshold
06 — Liquidation & Capital Recovery
SELECTION CRITERION: Bottom 15% of company assets ranked by (Annual Opex ÷ Market Value) ratio — highest ratio = worst value for money. These assets cost more to operate annually relative to what they are worth on the market.
Liquidation Value
SAR 9.4M
Bottom 15% — 242 units · sell now while value exists
Annual Cost Freed
SAR 24.9M
If bottom 15% disposed this quarter
MV Data Coverage
100%
1608 of 1608 company assets valued — fill gaps to sharpen recovery estimate
Recoverable Capital by Equipment Type
■ Market Value (Recovery) ■ Annual Cost Saved
Fleet Value Health — Lifecycle Position
● Productive Lifecycle1984 assets
● Watch Zone (Iron Law)305 assets
● Dispose Candidates338 assets
Total Fleet Market Value SAR 606.3M
07 — Compliance & Governance
258 ASSETS EXPIRING WITHIN 7 DAYS
Every hour these assets operate is uninsured legal liability. CEO directive required today.
SAR 5.1M
total fine exposure
Compliance Exposure by Category
● TUV (185 units)SAR 2.8M
● MVPI (183 units)SAR 915K
● License (174 units)SAR 1.4M
Critical — Next 7 Days 8 items
Forklift EXPIRED
Boom Truck EXPIRED
Backhoe Loader EXPIRED
Roller Compactor EXPIRED
Roller Compactor EXPIRED
Mobile Crane EXPIRED
Governance Metrics
Data Quality
Target: 80%+
85%
Ghost Fleet
Active, no mob date
12
License Mismatch
Light lic + heavy equip
502
No Operator
Assets unassigned
210
08 — Board Narrative & Export
Board Headline — Copy Ready
Fleet Rationalisation Programme — Q2 2026: Strategic review has identified SAR 19.8M in recoverable value across three prioritised directives. Fleet health is rated 86/100 with 21% of monthly burn classified as optimisable. Board approval is sought for the asset replacement, rental termination, and liquidation programmes detailed herein.
Board Memorandum — Copy Ready

Fleet Stewardship Status. The PMV fleet is operating under active intelligence monitoring as of 01 June 2026. The fleet comprises 2512 assets with an aggregate monthly operating commitment of SAR 15.4M, of which 79% is delivering productive output against active contracts. The remaining 21% — SAR 3.3M/month — has been categorised as optimisable through three targeted interventions currently under management review.

Capital Recovery Opportunity. The strategic review has identified SAR 9.4M in realisable liquidation value from the bottom-performance tier of the fleet (242 assets). In parallel, 305 assets have been flagged under the Iron Law replacement criterion, where annual operating cost exceeds 50% of market value — a replacement programme would yield SAR 559K/month in cost reduction. 18 internal swap opportunities have been confirmed that would eliminate SAR 18K/month in redundant rental expenditure without additional capital outlay.

Risk & Compliance Position. 530 assets carry documentation compliance alerts (TUV, MVPI, or operator licence) representing an estimated regulatory exposure of SAR 5.1M. Remediation is scheduled within the current operational cycle. 12 assets are flagged as ghost fleet — deployed without formal mobilisation records — and are subject to immediate site audit. Total annual risk exposure across all identified categories stands at SAR 74.6M, a figure that reduces to near-zero upon execution of the approved directives.

Board Indicators
Fleet Health
86/100
Monthly Commitment
SAR 15.4M
Optimisation Headroom
21% of burn
Recoverable Capital
SAR 19.8M
Assets for Replacement
305 flagged
Compliance Exposure
SAR 5.1M
Redundant Rental Spend/Mo
SAR 286K
Liquidation Value
SAR 9.4M
Risk Register
Idle Rental Waste
Financial · 95% probability
SAR 3.4M
annual
Iron Law Capital Burn
Capital · 85% probability
SAR 31.5M
annual
Compliance Void
Legal · 70% probability
SAR 5.1M
annual
Ghost Fleet Audit
Governance · 60% probability
SAR 651K
annual
TCO Dispose Carry
Lifecycle · 75% probability
SAR 33.9M
annual
Total Exposure SAR 74.6M