Bahri, the Riyadh-based shipowner and operator, has reported 20.47% growth in net profits, up to SAR 185.41 (US$ 49.43) million for the second quarter of the year, compared to SAR 153.91 (US$ 41.04) million in the equivalent months of 2017. The improved performance also represents an increase in profitability of over 50% against the first quarter of this year.
Gross profits in the second quarter were also up, by more than 25%, while total revenues increased 8%, to SAR 1.49 billion (US$ 400 million) in the April-June quarter 2018, compared with the corresponding three months of 2017.
The impressive set of results to a large extent reflects the addition of a number of new vessels to Bahri’s fleet over the last six months. This fleet expansion has helped it offset the negative impact of reduced transportation rates during the quarter on the company’s performance.
Abdullah Aldubaikhi, Bahri chief executive, pointed out that the results were achieved despite lower spot market rates, particularly in the oil transportation sector, and an increase in bunker costs. He added, “Our strong financial results demonstrate the success of our ongoing transformation drive across the organisation. We have been making significant investments towards strengthening our fleet and adopting new technologies and innovations in our operations. These efforts have paid off in the form of improved performance in our various business units.”
Bahri anticipates even further improvements in bottom line results in the second half of 2018. This optimism is based on an ongoing recovery in emerging economies and the subsequent benefits for international trade.