National Shipping Company of Saudi Arabia (Bahri) has reported a drop in its earnings for the period ended June 30, 2017, mainly attributed to lower spot market rates in general and specifically in oil transportation.
Namely, the company’s net profit for the second quarter of 2017 reached SAR 153.9 million (USD 41 million), representing a drop of 68 percent compared to a net profit of SAR 487.1 million (USD 129.8 million) seen in the same quarter a year earlier.
The decrease in net income was also driven by a rise in bunker costs as a result of higher bunker prices during the current quarter compared to the corresponding quarter of 2016.
Bahri’s operational profit for the quarter halved, ending the three month period at SAR 238.1 million, against an operational profit of SAR 544.9 million reported a year earlier.
The company saw similar decreases in the six-month period ended June 30, 2017, as its net profit plunged by 51 percent to SAR 532.7 million from SAR 1.1 billion reported in the first six months of 2016.
Additionally, Bahri’s operational profit dropped by 44 percent to SAR 681.1 million in the first six months of 2017 from SAR 1.22 billion recorded a year earlier.
Total revenues for the second quarter were down by 24 percent to SAR 1.39 billion compared to SAR 1.83 billion seen in the corresponding quarter of last year. Revenues for the first half of the year reached SAR 3.32 billion, down by 12 percent compared to SAR 3.79 billion reported in 2016.