The National Shipping Company of Saudi Arabia reported skyrocketing profits in 2015 and experienced a significant fleet expansion after its merger with crude oil tanker company Vela Marine International Ltd.
Bahri, the National Shipping Company of Saudi Arabia, reported net profits of 1.8 billion riyals (U.S. $479.6 million) for 2015, an astonishing 240.6 percent increase from 2014.
Gross profits for the year totaled 2.2 billion riyals, while operational profits reached 2 billion riyals, year-over-year increases of 220.9 percent and 244.3 percent, respectively, the shipping company said.
A variety of factors lead to Bahri’s intense surge in net profits for 2015, including:
• The increase in operating revenues from the very large crude carrier (VLCC) fleet expansion due to a merger with crude oil tanker company Vela Marine International Ltd., whose fleet was fully integrated with Bahri’s during the first quarter of 2015;
• The full employment of its VLCC fleet through entering in new markets and signing new contracts with a variety of new customers;
• An increase in the general cargo transportation sector’s operating income and net income;
• An increase in the chemical transportation sector’s net income;
• An increase in the crude oil transportation sector’s net profit margin of chartered vessels;
• A decline in average bunker prices in all sectors;
• An increase in the average Time Charter Equivalent rate in crude oil transportation spot market compared to 2014;
• An increase in profit from Petredec Limited, which is 30.3 percent owned by Bahri, by 53 million riyals;
• And an increase in operating efficiency.
In the fourth quarter of 2015 alone, Bahri saw net profits skyrocket 359.3 percent compared to the corresponding quarter in 2014 to 566.9 million riyals. Gross profits during the fourth quarter of 2015 totaled 656.4 million riyals, while operational profits reached 595.5 million riyals, year-over-year jumps of 183.1 percent and 202.4 percent, respectively.
Overall, Bahri operates a fleet of 75 vessels and specializes in the transportation of general cargo, crude oil, chemicals, liquefied petroleum gas and dry bulk.
Bahri drastically increases profits in 2015
