EMEA News
Big Jump in Profit and Lower Bunker Bills for BAHRI
The National Shipping Company of Saudi Arabia (BAHRI) has reported a big jump in its net profit for 2012, which grew 75.1 percent to SAR 504.0 million ($134.4 million) compared to 2011's net profit of SAR 287.8 million ($76.7 million).
BAHRI said the strong result for the period ending December 31, 2012 was as a result of improvements in the Oil & Gas Sector due to the increase of average time charter equivalent rates in the very large crude carrier (VLCC) spot market during the first half of the year, as well as improvements in the General Cargo Sector.
The company reported a lower average bunker consumption cost thanks to a new policy of slow steaming, but did not reveal specific figures.
BAHRI also said that last year its Bahri Dry Bulk Company joint venture, 40 percent of which is owned by bulk importer Arabian Agricultural Services Company (ARASCO), had started its operations and had earned an unspecified profit.
The positive performance comes as many of the world's shipowners and operators struggle with vessel oversupply and rate uncertainty, with John Fredriksen last year saying that as a result of the shipping crisis, "most of the companies are just not going to make it."
