National Shipping Company of Saudi Arabia (Bahri), the exclusive oil shipper for Saudi Aramco, made a net profit of 327.8 million riyals ($87.4 million) for the three months to Dec. 31. That compares with 566.4 million riyals in the fourth quarter of 2015.
For the year ending December 31, 2016, Bahri has reported a net profit of SR1.76 billion ($469.3 million). The company registered net revenue of SR6.78 billion ($1.8 billion), and earnings per share (EPS) of SR4.48 for the year, it said in a statement.
The decrease in net income for the current quarter compared to the corresponding quarter of previous year is mainly due to:
-Lower spot market rates in general and specifically in Oil transportation.
- Increase in bunker costs as a result of higher oil and bunker prices during the current quarter compared to the corresponding quarter of 2015.
- The Operational efficiency and savings contributed in limiting the impact of lower Spot market rates during the current quarter compared to the corresponding quarter of 2015.
- Operating revenues and operating income of General Cargo Transportation sector has increased during the current quarter as a result of improving the operational efficiency in the sector.
- The company fleet expansion limited the impact of lower spot markets rates during the current quarter compared to the corresponding quarter of 2015.
The decrease in net income for the current period compared to the corresponding period is mainly due to:
- Lower spot market rates in general and specifically in Oil transportation.
- A decrease in the company share in profits of Petredec limited (30.3% owned by Bahri).
- An increase in financing charges as a result of an increase in SAIBOR & LIBOR rates during the current period compared to the corresponding period of 2015 as well as adding new financing facilities to fund the fleet expansion of the company.
- The company expanded its fleet by adding 10 vessels, which represent 14% increase to the entire fleet, which limited the impact of lower spot markets rates during the current period compared to the corresponding period of 2015.