Owner and operator of very large crude carriers Bahri witnessed a surge in its earnings in the third quarter ended September 30, 2019.
Net profit reached SAR 146.7 million (USD 39.1 million), compared to a net profit of SAR 81.28 million (USD 21.6 million) reported in the same period a year earlier.
The 80.5% change was mainly attributed to the increase in returns of several operating segments powered by the growth in logistics services sector, according to Bahri.
Additionally, the increase in share in results of associates and the gain on disposal of property and equipment during the current quarter helped limit the impact of the increase in the financing cost, which is mainly due to recording unrealized losses of revaluation of the financial derivatives and adding new loans, the company explained.
However, Bahri’s net profit was slightly down when looking at the nine-month period ended September 30, 2019. Compared to the same period in 2018, the company’s net profit dropped by 4.6% to SAR 371.6 million from to SAR 389.8 million.
The change was a result of a rise in financing cost, mainly due to recording unrealized losses of revaluation of the financial derivatives and adding new loans. Net profit was down despite the growth achieved in the operating profit driven by the improvement in the performance of oil sector with the improvement in the transportation rates powered by the increase in profit in share result of associates.