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Low VLCC rates dent Bahri earnings

Riyadh: First quarter net profit at Bahri (formerly National Shipping Company of Saudi Arabia) fell 9.7% year on year from SAR160.1m in 2012 to SAR144.5m 2013.

The fall in net profit comes on an operating profit of SAR86.4m ($23m) for the quarter, 42.8% down on the SAR151.1m in the same period last year. The drop in earnings is attributable to lower time charter equivalent earnings in the VLCC market according to Bahri ceo Saleh N Al-Jasser, but with most of Bahri's VLCCs employed on Saudi Aramco's VLCC Tranportation Programme, the fleet managed to outperform average prevailing rates in the spot market.

Net profit in the first quarter 2013 was up 98% on the previous quarter owing to the switch of VLCCs to the Saudi Aramco tanker programme, an increase in profit at 80% Bahri-owned National Chemical Carriers (NCC), an SAR38m net gain on the disposal of two ro-ro vessels and a SAR13.7m gain on NCC's cancellation of a delayed chemical tanker shipbuilding contract at ShinaSB yard.

Posted 15 April 2013

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