Saudi Arabia shipping major Bahri reported a rise in net income for the second quarter of 2018, mainly driven by an improved performance and fleet expansion.
The company’s net profit was up by 20.4 percent to SAR 185.4 million from SAR 153.9 million reported in the same quarter a year earlier.
The increase in net income is mainly due to better performance of the company’s business units during the quarter, as well as the increase in fleet, which limited the negative impact of the lower transportation rates.
Bahri’s operational profit for the period stood at SAR 305.4 million, marking a 28.2 percent increase from SAR 238.1 million seen in the second quarter of 2017.
The company’s revenues for the quarter amounted to SAR 1,497 million compared to SAR 1,391 million in the corresponding quarter of last year, representing a an increase that is equal to 8 percent.
For the first six months ended June 30, 2018, Bahri’s net profit plunged by 42 percent to SAR 308.5 million from SAR 532.7 million reported in the same period in 2017. The company’s operational profil was also down by 17.4 percent for the period, ending at SAR 562.3 million, compared to SAR 681.1 million.
The decrease in net income was attributed to lower spot market rates in general, specifically in oil transportation, and an increase in bunker costs during the current period compared to the corresponding period.
First half revenues reached SAR 2,954 million, dropping by 11 percent from SAR 3,329 million reported in the first six months of 2017.