National Shipping Company of Saudi Arabia (Bahri) reported a huge jump in its net profit for the quarter ending on December 31st, 2015.
Bahri’s fourth quarter net profit amounts to SAR 566.88 million (USD 151 million), a major leap from last year’s SAR 123.42 million.
The company’s current profit reached SAR 1.8 billion doubling last year’s SAR 533 million in net profit.
Bahri attributes the improvement in net income to an increase in operating revenues as a result of a VLCC fleet expansion after completing the merger of Vela Marine International Ltd., receiving more VLCCs and chemical tankers during 2015.
The company’s fleet now consists of 75 vessels, from which 33 are VLCCs and 26 are chemical tankers.
The increase is also due to better operational and commercial performance and increase in average Time Charter Equivalent (TCE) rate in crude oil transportation spot market.
What is more, Bahri said that it also owes the net increase to the full employment of VLCCs fleet through entering in new markets and signing new long term agreements with several new clients along with a decrease in average bunker prices in all the sectors.