EMEA News
Bunker Costs Rise, but Tanker Firm Bahri Doubles Profit
The National Shipping Company of Saudi Arabia (Bahri) has said it more than doubled its quarter-on-quarter net profits for Q2 2012 despite a 14% rise in the cost of bunkers.
Net profit for the second quarter rose 126.6% from the same period in the prior year to SAR 207.1 (USD $55.2) million compared to SAR 91.4 (USD $24.3) million for Q2 in 2011.
Net profit also increased 29.4% over the previous quarter's SAR 160.1 (USD $42.2) million in Q1 2012.
Net profit for the six months ended 30th June 2012 was SAR 367.2 SAR (USD $97.92) million compared to SAR 151.1 (USD $40.29) million for the same period in the prior year, an increase of 143%.
Earnings per share for the six month period totaled SAR 1.17 (USD $0.31) compared to SAR 0.38 (USD $0.10) for the same period in 2011.
Operating profit of the six months ended June 30 2012 totalled SAR 296.4 (USD $79.04) million compared to 130.1 (USD $34.69) million for the same period in 2011, an increase of 111.6%.
Bahri CEO Mr. Saleh Nasser Al-Jasser indicated that the net profit increase was attributable to the increase in the average time charger equivalent (TCE) rates in the Very Large Crude Carrier (VLCC) spot market as well as the increased profit of liquid petroleum gas carrier firm Petredec, which is 30.3% owned by Bahri.
He added that Q2 net profit benefited from the improvement of operational profit of the general cargo sector as well as one-time operational profits of approximately SAR 23 million (USD $6.13 million) from expiry of a one time chartered vessel and a gain of SAR 11 (USD $2.9) million from the sale of land owned by the company.
Formally known as NSCSA, Bahri says it currently has a fleet of 34 vessels and is aiming to become one of the top ten VLCC owners and one of the top five chemical carriers owner.
