National Shipping Company of Saudi Arabia (Bahri) has recorded solid growth for the first half with a 6% jump in its revenue which soared to SAR5.03 billion (($1.34 billion) supported by better shipping rates in oil and chemicals markets and larger volumes in dry bulk and logistics.

Saudi Arabia’s premier shipping and logistics company, Bahri comprises four business units (BUs) - oil, chemicals, integrated logistics and dry bulk – as well as a ship management function shared company-wide.

Announcing its financial results for the six-month period ended June 30, 2024, Bahri said the revenue growth was mainly driven by the 24% YoY rise in sales from the Chemicals BU and improved contributions from dry bulk and integrated logistics.

For the first six months, the Saudi shipper's net profit surged by 20% to SAR1.19 billion boosted by the ebitda margin expansion to 48% in H1 2024 versus 44% last year.

Margin expansion was driven by improvements in cost efficiencies and higher shipping rates for oil and chemicals, partly offset by reduced profitability in dry bulk and integrated logistics, and a lower earnings contribution from equity-accounted affiliates.

Key revenue growth factors for the company were favourable supply-demand price dynamics in oil and chemicals shipping market, larger chemicals and dry bulk volumes transported and increased logistics transactions during the period, it added.

For the second quarter, its net profit grew by 48% on the back of growth in shipped volumes, higher oil and chemicals shipping rates, and improved cost efficiencies compared to the second quarter of 2023.

The Q2 revenue increased 15% YoY to SAR2.71 billion, driven by chemical revenue growth and contributions from dry bulk and integrated logistics, likewise supported by favorable supply-demand dynamics in the oil and chemicals shipping market, and larger chemicals and dry bulk volumes transported, and increased logistics transactions compared to the second quarter of last year.

On a quarter-on-quarter (QoQ) basis, Q2 revenue was higher by 17%, driven by increases across all BUs on the back of higher shipping rates and larger cargo and logistics volumes.

On the solid performance, CEO Engineer Ahmed Ali Al Subaey said: "Bahri had a good first half of this year and delivered commendable operational performance across our divisions. Our success was driven by optimized fleet management and route efficiency, supported by improved market conditions for VLCCs and chemical tankers."

"From our solid base, we are focused on value-accretive growth through strategic fleet expansion and modernization, as well as in strengthening our presence in core and adjacent markets. By pursuing strategic partnerships and leveraging opportunities aligned with Saudi Arabia’s Vision 2030, we aim to support the development of the Kingdom’s maritime ecosystem as Saudi Arabia’s pre-eminent shipping and logistics champion, he added.-TradeArabia News Service

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