Bahri Q2 profit rises 48% on better shipping rates

Saudi Arabia’s shipping giant Bahri reported a 48 percent year-on-year increase in net profit to SAR733 million ($195.4 million) in the second quarter of 2024, thanks to better shipping rates and optimised fleet management.

The company’s top line rose 15 percent year on year to SAR2.7 billion, driven by chemical revenue growth and higher contributions from dry bulk.

Bahri’s first-half net profit grew 20 percent annually to SAR1.2 billion, boosted by margin expansion due to improvements in cost efficiencies and higher shipping rates for oil and chemicals.

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Oil transport business remained resilient despite some softening in revenues to still contribute a 13 percent Ebitda year-on-year growth through improvements in operating efficiencies, said CFO Basil Abulhamayel.

Bahri invested SAR1.5 billion in capital expenditure in the first six months of 2024, 12 percent more than last year.

Net debt stood at SAR5.7 billion, 15 percent lower year on year, during the period.

Cash flow stood at SAR227 million in the first six months, compared to SAR621 million a year ago. The decrease was mainly due to a cyclical rise in cash funding for working capital, which offset increased cash generated from earnings and higher capital expenditures.

The Riyadh-headquartered company operates a fleet of 88 owned vessels, 16 vessels under a lease contract, and one floating desalination barge as of June 30 2024.