Bahri says Vela merger behind Q2 profit doubling
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The National Shipping Company of Saudi Arabia (Bahri) has announced second-quarter net profit that more than doubled compared to last year, largely due to increased fleet size and rates for transporting spot crude.
The company, an exclusive oil-shipper for Saudi Aramco, saw net profit for the three months to June 30 of 342.5 million riyals (US $91.3 million), compared to 130.4 million riyals in the same period a year earlier.
The profit results were only just short of market expectations. Albilad Capital had forecast that Bahri would make a quarterly profit of 350 million riyals.
Bahri attributed the profit gain to an increase in its fleet of very large crude carriers due to the completion of its merger with Vela Marine International, as well as higher average charter rates in the spot crude oil transporting market.
The Vela merger came after four straight quarters of falling profits, while this latest statement marks the second quarter in succession in which the company has reported a doubling of profits year on year due to the Vela merger.
Bahri is one of five stocks which are not open to direct purchase by foreign investors after the kingdom opened its bourse for the first time on June 15.