Bahri Records a 30% Profit Decrease in Q4, Reporting Earnings of SAR 401 Million

National Shipping Company of Saudi Arabia has disclosed a notable decrease in its financial performance for the fourth quarter and the full year ending on December 31, 2023.

In the fourth quarter, the company reported a decrease in net profit, which amounted to SAR 401 million, down by 30.5% from SAR 578.1 million in the corresponding quarter of the previous year. This announcement followed Wednesday’s release of the annual financial results.

The operating profit for the fourth quarter also witnessed a decline, reaching SAR 581.9 million compared to SAR 760 million in the same quarter of the previous year, reflecting a 23.4% decrease.

However, on a positive note, the net profit for the entire period in the current year showed significant growth, amounting to SAR 1.61 billion. This represents a substantial 55% increase from the SAR 1.04 billion reported in the same period of the previous year. Additionally, total ownership rights (excluding non-controlling interests) rose to SAR 11.83 billion, marking a commendable 12.8% increase from the SAR 10.49 billion reported in a similar period of the previous year.

Earnings per share for the current period also demonstrated a positive trend, reaching SAR 2.19, compared to SAR 1.41 in the same period of the previous year, indicating improved shareholder returns.

According to the company, the main reason for the decrease in revenue during the current quarter compared with same quarter of last year is:

– The decrease in revenue of some sectors, especially Oil transportation sector whose revenue decreased by an amount of SAR 737 million due to the drop of global shipping rates during the current quarter compared with same quarter last year.

– The decrease in gross profit by an amount of SAR 168 million due to the drop of global shipping rates during the current quarter compared with same quarter last year.

– The increase in the finance costs by an amount of SAR 30 million due to the increase in interest rates.

While limiting the decrease in net profits, the increase in the Company’s share in results of equity accounted investee companies by an amount of SAR 41 million during the current quarter compared with same quarter last year.

The main reason for the decrease in revenue in the current quarter compared with previous quarter is:

– The decrease in revenue of some sectors, especially Oil transportation sector whose revenue decreased by an amount of SAR 172 million due to the drop of global shipping rates during the current quarter compared with previous quarter, offset with the increase in revenue of chemicals transportation sector by an amount SAR 98 million and Logistics sector by an amount of SAR 72 million due to the increase in operation activities as well as the increase in global shipping rates during the current quarter compared with previous quarter.

The main reason for the increase in net profit in the current quarter compared with previous quarter is:

– The increase in gross profit by an amount of SAR 156 million due to the improvement of operations performance in multiple sectors of the Group, where the Oil transportation sector gross profit increased by an amount of SAR 64 million, Logistics sector by SAR 63 million and Chemicals transportation sector by SAR 31 million during the current quarter compared with previous quarter.

– The increase in the Company’s share in results of equity accounted investee companies by an amount of SAR 58 million during the current quarter compared with the previous quarter.

– The increase in other income by an amount of SAR 33 million during the current quarter compared with the previous quarter, which is mainly due to the realised capital gain by an amount of SAR 87 million (Comparing with SAR 38 million in previous quarter) from sale of vessels within the fleet modernisation plan.

– The decrease in the finance costs by an amount of SAR 21 million during the current quarter compared with the previous quarter.

– While limiting the increase in net profits, the increase in general and administrative expenses by an amount of SAR 39 million during the current quarter compared with previous quarter.

The main reason for the increase in revenue during the current period compared with same period of last year is:

– The improvement of Chemicals transportation sector performance whose revenue increased by an amount of SAR 665 million due to the increase in operation activities as well as the increase in global shipping rates during the current period compared with same period last year, offset by the decrease in revenue of some sectors especially Oil transportation sector whose revenue decreased by an amount of SAR 323 during this period compared with same period last year.

The main reason for the increase in net profit during the current period compared with same period of last year is:

– The increase in gross profit by an amount of SAR 602 million due to the improvement of operations performance in multiple sectors of the Group, where the Oil transportation sector gross profit increased by an amount of SAR 354 million, and Chemicals transportation sector by SAR 349 million during the current period compared with same period of last year.

– The increase in other income by an amount of SAR 223 million during the current period compared with same period of last year which is mainly due to the realised capital gain by an amount of SAR 214 million (Comparing with SAR 160 million in same period of last year) from sale of vessels within the fleet modernisation plan, in addition to the collection of insurance claims by an amount of SAR 93 million (Comparing with SAR 17 million in same period of last year) as well as the increase in income from Murabaha deposits by an amount of SAR 80 million (Comparing with SAR 10 million in same period of last year).

– The increase in the Company’s share in results of equity accounted investee companies by an amount of SAR 207 million profits during the current period compared with same period of last year.

While limiting the increase in net profits, the increase in the finance cost by an amount of SAR 324 million due to the increase in interest rates during the current period compared with same period of last year.