Bahri Sees Profit Drop in 2017
National Shipping Company Of Saudi Arabia (Bahri) reported a net income of SAR 800.3 million (USD 213.3 million) in 2017, down by 53.4% from the previous year’s net income of SAR 1.7 billion.
As explained, the decrease in net income was mainly due to lower rates in the international spot market, specifically in oil and chemicals. This was accompanied by a rise in bunker costs due to higher bunker prices in 2017.
In addition, a decrease in the share of profits of Petredec limited, which is 30.3% owned by Bahri, by 65 million contributed to the profit drop.
Bahri clarified that an increase in the provision of the withholding tax during the period ended December 31, 2017, a rise in the financing expenses to fund the expansion of the company’s fleet, the loss of revaluation of financial derivatives and an increase in general and administrative expenses were also reasons for the profit decrease.
According to Bahri, the addition of new vessels to its fleet and the growth in the logistics service sector have reduced the impact of lower transport prices on the company’s performance.
Bahri released its 2017 financial information on the same day when it took delivery of a new very large crude carrier (VLCC) in South Korea.
Named Qamran, the newly received vessel is the third VLCC to join Bahri’s fleet this year, following the deliveries of Kassab in January and Lawhah in February, bringing the total number of Bahri’s fleet to 91 vessels including 44 VLCCs.
Built by Hyundai Samho Heavy Industries (HSHI), the 300,000 dwt carrier features a length of 330 meters and a width of 60 meters. It is part of the ten VLCCs Bahri ordered from the South Korean company in May 2015 in line with the Saudi conglomerate’s strategic long-term maritime growth and expansion plan.
“Qamran has renewed our resolve to revolutionize the maritime industry through diversified and innovative solutions designed to meet various needs in the market. More importantly, it has further bolstered Bahri’s capability to continue our support to the Kingdom’s ambitious initiatives such as the Saudi Vision 2030, and contribute to the country’s efforts to reinforce its pre-eminent position as a strategic regional hub and logistics gateway across continents,” Abdullah Aldubaikhi, CEO of Bahri, commented.