Saudi Arabia’s Bahri, the world’s largest owner and operator of very large crude carriers (VLCCs), closed the third quarter of this year with a 114% rise in its net profit that was attributed to the improvement in operations.
As informed, Bahri’s net profit rose to SAR 314 million ($83.7 million) in the third quarter of 2020 from SAR 147 million ($39.2 million) seen in the corresponding period a year earlier.
Total revenues amounted to SAR 1.51 billion in Q3 2020, an increase of 2% compared to SAR 1.48 billion recorded in Q3 2019.
“The positive financial results achieved during the third quarter of 2020 reflects a significant improvement in our operations compared to the same quarter last year, as we were able to enhance efficiency through the careful management and control of operating and financing expenses,” Abdullah Aldubaikhi , Chief Executive Officer of Bahri.
“Despite the prevailing challenges, we were able to boost reliability by continuing to cater to our customers without interruption, and implement the best safety practices to ensure the health and wellbeing of our employees…”
After Bahri recorded a 1,569% surge in its net profit in the second quarter of 2020, the company also reported a “remarkable” increase of 302% in net profit for the first nine months of 2020.
Net profit reached SAR 1.49 billion during the three-month period in 2020, compared to SAR 372 million posted in the first three quarters last year. The total revenues for the period surged to SAR 7.12 billion, up by 54% compared to SAR 4.63 billion recorded last year.
By the end of the first nine months of this year, earnings per share increased by 303%, amounting to SAR 3.79, compared to SAR 0.94 in the same period in 2019.
For the third quarter of 2020 alone, earnings per share increased by 116% to reach SAR 0.8, compared to SAR 0.37 for the same quarter last year.
The growth in Bahri’s earnings comes at a time when the company is amid its fleet renewal program aimed at building ships to the highest environmental, fuel efficiency and safety standards.
In August, Bahri ordered ten 49,999 dwt medium range chemical tankers from South Korean shipbuilder Hyundai Mipo Dockyard (HMD). The order has been valued at SAR 1.5 billion.
As of 27 October 2020, Bahri had 88 vessels in its fleet, comprising VLCCs, chemical and product tankers, multipurpose vessels and dry bulk carriers.