In 24 years, the net income reached 4 billion yuan, and the scale of the self-owned fleet reached 100 vessels
Saudi Arabian National Shipping Company (Bahri) achieved a milestone at the end of the first quarter that few other shipowners have reached - by acquiring seven new modern vessels, the total size of its own fleet has reached 100 ships.
Bahri's financial report released on Thursday showed that its net profit rose 18% against the trend to 533 million Saudi riyals (about 1.03 billion yuan). However, the operating income declined by 6.3% year-on-year, dropping from 2.313 billion Saudi riyals in the same period last year to 2.167 billion Saudi riyals. The decline in performance was mainly due to the reduction in the contribution value of the oil and chemical business segment. This not only reflects the overall downward pressure on freight rates in the market but also highlights the current weakness in the shipping market. However, the increase in operating days brought about by the newly purchased ships has alleviated this downward trend.
It is worth noting that the growth in integrated logistics, dry bulk transportation and maritime services business partially offset the revenue decline in the petrochemical sector. The growth of these businesses is attributed to the continuously expanding customer base and the improvement of asset utilization rate. Among them, after the maritime service business was put into operation in the second quarter of 2024, it has begun to contribute new revenue sources to the company.
Sube said that this performance fully demonstrates the risk-resistance capacity of Bahri's diversified business portfolio, enabling the company to achieve strong profit growth even in a challenging market environment. He further emphasized: "In the face of the ongoing global trade and economic uncertainties, Bahri's diversified business layout and operational flexibility will continue to consolidate our risk-resistance advantages."
Bahri's performance last year was extremely outstanding. Due to the continuous expansion of the fleet size, the company's annual profit reached a record high, with a net income of 2.1 billion Saudi riyals (approximately 4.06 billion yuan), an increase of one-third compared to the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 23% to 4.71 billion Saudi riyals (about 9.1 billion yuan).
Against the backdrop of an exceptionally active second-hand ship trading market in 2023, the company implemented a series of significant fleet renewal and expansion measures. The annual report data shows that in 2024, the company added 5 VLCCS, 4 chemical tankers, 1 bulk carrier and 1 multi-purpose vessel, while disposing of 3 chemical tankers, 2 VLCCS and 1 product oil tanker.
By the end of 2024, Bahri's own fleet had reached 93 vessels, specifically consisting of 41 very large crude carriers, 33 chemical and product oil tankers, 12 bulk carriers and 7 multi-purpose vessels (excluding the 16 vessels operated by the company through long-term lease agreements). In August 2024, Bahri spent approximately one billion US dollars to purchase nine VLCCS from Capital Maritime, a subsidiary of Greek shipping magnates Evangelos Marinakis. In the previous few months, the company also acquired a batch of relatively old VLCCS from Korea Line of South Korea's SM Group at a total price of 460 million US dollars.
In addition, in order to expand its business, Bahri announced at the end of January this year the establishment of a strategic partnership with Singapore's Petredec Company to meet the growing demand for liquefied petroleum gas and ammonia in Saudi Arabia.
At present, Bahri's fleet size is expected to further expand. It has finalized the acquisition plans for three VLCCS, and these new vessels are expected to be delivered by the end of 2025.
Bahri's financial report released on Thursday showed that its net profit rose 18% against the trend to 533 million Saudi riyals (about 1.03 billion yuan). However, the operating income declined by 6.3% year-on-year, dropping from 2.313 billion Saudi riyals in the same period last year to 2.167 billion Saudi riyals. The decline in performance was mainly due to the reduction in the contribution value of the oil and chemical business segment. This not only reflects the overall downward pressure on freight rates in the market but also highlights the current weakness in the shipping market. However, the increase in operating days brought about by the newly purchased ships has alleviated this downward trend.
It is worth noting that the growth in integrated logistics, dry bulk transportation and maritime services business partially offset the revenue decline in the petrochemical sector. The growth of these businesses is attributed to the continuously expanding customer base and the improvement of asset utilization rate. Among them, after the maritime service business was put into operation in the second quarter of 2024, it has begun to contribute new revenue sources to the company.
Sube said that this performance fully demonstrates the risk-resistance capacity of Bahri's diversified business portfolio, enabling the company to achieve strong profit growth even in a challenging market environment. He further emphasized: "In the face of the ongoing global trade and economic uncertainties, Bahri's diversified business layout and operational flexibility will continue to consolidate our risk-resistance advantages."
Bahri's performance last year was extremely outstanding. Due to the continuous expansion of the fleet size, the company's annual profit reached a record high, with a net income of 2.1 billion Saudi riyals (approximately 4.06 billion yuan), an increase of one-third compared to the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 23% to 4.71 billion Saudi riyals (about 9.1 billion yuan).
Against the backdrop of an exceptionally active second-hand ship trading market in 2023, the company implemented a series of significant fleet renewal and expansion measures. The annual report data shows that in 2024, the company added 5 VLCCS, 4 chemical tankers, 1 bulk carrier and 1 multi-purpose vessel, while disposing of 3 chemical tankers, 2 VLCCS and 1 product oil tanker.
By the end of 2024, Bahri's own fleet had reached 93 vessels, specifically consisting of 41 very large crude carriers, 33 chemical and product oil tankers, 12 bulk carriers and 7 multi-purpose vessels (excluding the 16 vessels operated by the company through long-term lease agreements). In August 2024, Bahri spent approximately one billion US dollars to purchase nine VLCCS from Capital Maritime, a subsidiary of Greek shipping magnates Evangelos Marinakis. In the previous few months, the company also acquired a batch of relatively old VLCCS from Korea Line of South Korea's SM Group at a total price of 460 million US dollars.
In addition, in order to expand its business, Bahri announced at the end of January this year the establishment of a strategic partnership with Singapore's Petredec Company to meet the growing demand for liquefied petroleum gas and ammonia in Saudi Arabia.
At present, Bahri's fleet size is expected to further expand. It has finalized the acquisition plans for three VLCCS, and these new vessels are expected to be delivered by the end of 2025.
