The National Shipping Company of Saudi Arabia, also known as Bahri, reported a 3% drop in net income for 2016 as spot tanker rates fell last year.
Bahri reported annual earnings of SAR 1.76bn ($469m) for 2016, compared to SAR 1.82bn in 2015. Gross profit of SAR 1.94bn riyals was nearly 12% lower and operating profit of 1.83bn riyals dropped 7% from year-earlier results.
Total revenue for the year was 6.8bn riyals, a drop of 9% from 2015.
The company cited lower spot market rates for oil transportation as one cause for the weaker results. The Baltic Exchange's assessment for spot VLCC rates showed a 40% decline in the average rate for 2016 compared to 2015.
Bahri also said its share of profits in LPG trading firm Petredec, in which Bahri owns a 30% stake, were also lower for the year. As reported in TradeWinds, Petredec has been in a dispute with Chinese importer Oriental Energy over the latter's failure to make timely charter payments.
Bahri also reported an increase in financing expenses due to gains in Libor and other interest rates relative to 2015.
The company, which currently owns 37 VLCCs, said it was able to reduce operating costs, which partially offset the decline in spot rates. Likewise, the addition of adding ten vessels last year also offset lower rates.
