Saudi Arabian state shipping company Bahri has posted a decline in fourth-quarter earnings as VLCC rates fell from 2022 highs.
The Riyadh-listed group said net profit to 31 December was cut to SAR 401.2m ($107m) against SAR 578.1m a year earlier.
Revenue declined to SAR 2bn from SAR 2.7bn overall, while the figure for oil transport was down SAR 737m year on year in weaker markets.
Clarksons Securities said on Wednesday that VLCC rates continued to drop, with eco-vessel earnings finishing Tuesday at $42,900 per day, down 3.2%, as brokers reported a quiet start to the week.
Bahri also noted an increase in its finance costs of SAR 30m due to a rise in interest rates.
But it logged a gain of SAR 41m from equity investments in other companies.
And gross profit was up by SAR 156m compared with the third quarter of 2023, thanks to improvements in operations across its divisions.
Oil transport earnings rose SAR 64m quarter to quarter, while the logistics division added an extra SAR 63m in profit and chemical carriers SAR 31m.
Finance costs dropped by SAR 21m during the final three months compared with the previous quarter, but general and administrative expenses rose by SAR 39m.
Bahri owns 92 ships, including a large VLCC fleet, bulkers, chemical tankers and ro-ros.
The group realised a capital gain of SAR 87m in the fourth quarter from selling older ships as part of its modernisation plan.
Annual net profit jumped to SAR 1.6bn from SAR 1bn in 2022.
The company is a joint venture between the country’s sovereign wealth fund and oil major Aramco.
