31 JUL 2016
Riyadh – Saudi Arabia, July 31, 2016 – The National Shipping Company of Saudi Arabia (Bahri) achieved strong results in first-half of 2016 to become one of the top 10 Saudi joint stock companies, as it has posted a net profit for the first half of SAR 1,116.17 million, up 50.65%, and EPS of SAR 2.83, up 51%, compared to the corresponding period last year.
Ibrahim Al Omar, CEO of Bahri stated, “Our year-on-year second-quarter performance surge is very much in line with our expectations, fueled by an increase in overall operating revenues as a result of the growth in our VLCC and chemical tankers fleet size in addition to an increase in the average charter rates in the crude oil transportation sector. We are committed to playing an integral and leading role in realizing the Kingdom’s 2030 Vision and signed some significant agreements to that end during the last quarter with SEC and SAGO in addition to an agreements with APICORP to launch a shipping fund to acquire approximately 15 Very Large Crude Carriers (VLCCs), in the presence of His Excellency Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources for the Kingdom of Saudi Arabia.”
Ali Al Harbi, Chief Financial Officer at Bahri added, “The results of the first half of 2016 were outstanding as a result of the strong operational and financial performance of the company, up 51%, compared to the corresponding period last year and EPS of SAR 2.83 compared to 1.88 at the end of the corresponding period last year. The company maintained its ability to generate strong operating cash flows, giving it financial flexibility and high cash flow. In spite of the decline in crude oil transportation rates in the spot market during the current quarter compared with the previous quarter of this year, the company has succeeded in achieving excellent results due to continued strong operational and commercial performance, expanding its fleet in oil transportation petrochemical sectors and improved net profit general shipping sector.”
Increase in second-quarter net income as compared to same period last year was mainly due to:
• An increase in operating revenues as a result of buying and receiving several VLCCs.
• Increase in average Time Charter Equivalent (TCE) rate in crude oil transportation spot market during the current quarter compared to the corresponding quarter of 2015.
• Increase in the operating revenues and net income of General Cargo Transportation sector due to the improvement of the operating and commercial performance.
• Decrease in average bunker prices.
• Increase in the company share in profits of Petredec Limited (30.3% owned by Bahri) by SAR 29.5 million (Current quarter: 38.8 million, corresponding quarter: 9.3 millions)
Increase in first half net income as compared to same period last year was mainly due to:
• An increase in operating revenues as a result of buying and receiving several VLCCs and chemical tankers during 2016, as the fleet now consists of eighty three vessels; from which 36 are VLCCs, 26 are chemical tankers, 10 refined petroleum tankers, 6 general cargo and 5 dry bulk ships.
• Increase in the operating revenues and net income of General Cargo Transportation sector due to the improvement of the operating efficiency and commercial performance of the sector activities.
• Increase in average Time Charter Equivalent (TCE) rate in crude oil transportation spot market during the current period compared to the corresponding period of 2015.
• Decrease in average bunker prices.
Decrease in second-quarter net income as compared to the previous quarter was mainly due to:
Decrease in Oil Transportation sector results as a result of a decrease in Time Charter Equivalent (TCE) rate in crude oil transportation spot market during the current quarter compared to the previous quarter of the current year. On the other hand, the net income of Chemicals sector has improved due to the increase in average rates of chemicals spot market as well as the net income of General Cargo sector due to enhancing the efficiency.