The National Shipping Company of Saudi Arabia’s net profit tumbled 51.6 percent year-over-year for the first half of 2017, but looking ahead, it plans to complete the establishment of a joint venture with Bolloré Logistics Sas by the third quarter of 2017.
Bahri, the National Shipping Company of Saudi Arabia, recorded a net profit of 533 million Saudi riyal (U.S. $142 million) for the first six months of 2017, tumbling 51.6 percent from the corresponding 2016 period, according to the company.
Bahri attributed the sharp drop to lower spot market rates in general, specifically in oil transportation, and an increase in bunker costs due to higher bunker prices.
Meanwhile, revenues for the first half of 2017 slipped 12.2 percent year-over-year to SAR 3.3 billion.
Last Tuesday, Bahri signed a joint venture agreement with Bolloré Logistics Sas.
The two companies intend to establish a joint venture in Riyadh, Saudi Arabia, dubbed Bahri Bolloré Logistics, with share capital of SAR 15 million through shareholders. They agreed to increase the share capital to be SAR 30 million in three months from the date of incorporating the joint venture.
The joint venture will offer end-to-end logistics solutions to large companies based across the region and international companies doing business within Saudi Arabia.
Bahri will own 60 percent of the shareholding in the joint venture, while Bolloré will own 40 percent.
They expect to complete the establishment of the joint venture by the third quarter of 2017.
Bahri profits sink over 50% in first half 2017
