The National Shipping Company of Saudi Arabia (Bahri), the kingdom’s leading shipping and logistics provider, has reported record 2024 revenue of SAR9.48 billion ($2.53 billion), reflecting higher cargo volumes due to fleet expansion and increased overall freight rates. 

 

Bahri also reported record net profit of SAR2.17 billion ($578.52 million) for the year, while expanding the net profit margin to 23% compared to 18% in 2023. For Q4 2024, Bahri reported revenue of SAR2.22 billion and net profit of SAR474 million, demonstrating 10% and 18% year-on-year (YoY) growth, respectively.

 

On the company’s results, Eng Ahmed Ali Al Subaey, CEO of Bahri, said: “2024 was more than just a record-breaking year for Bahri – it was a pivotal year that laid the foundation for our future. We took strategic steps to reinforce Bahri’s position as a global leader in shipping and logistics by modernizing and expanding our fleet, with a net addition of five vessels.  We also grew our customer base and secured new demand channels, supported by the trust and reputation for reliability we have built in the market, along with the strength of our partnerships and our employees’ unrelenting focus on consistently exceeding expectations.

 

"Throughout the year, we remained committed to operational excellence – building resilience, efficiency and discipline across our business, while maintaining agility to seize opportunities and mitigate risks presented by a volatile and evolving market.

 

"Our journey remains firmly directed towards delivering sustained, value-accretive growth for our shareholders, championing the transformation of the Kingdom’s shipping and logistics sector in line with Vision 2030, and strengthening our role as a vital and responsible participant in the global supply chain,” AL Subaey said.

 

Revenue growth in Q4 was primarily supported by increased cargo volumes enabled by the expansion of Bahri’s operating fleet, as well as higher overall freight rates. EBITDA growth was driven by the Oil and Integrated Logistics business units, as well as increased income from associates. EBITDA margin expanded to 50% from 49% in Q4 2023, reflecting improved cost efficiencies mainly from voyage optimization and fleet modernization. Net profit rose 18% YoY to SAR474 million, with net profit margin improving to 21% from 20% in the previous period.

 

Revenue growth in the full year is reflected by higher cargo volumes due to fleet expansion and generally higher freight rates. EBITDA growth was driven by effective cost management from voyage optimization and cost savings from fleet modernization, with the Chemicals and Oil businesses as the main growth drivers, in addition to associated companies which contributed income higher than the previous year. Net profit rose 34% YoY to SAR2.17 billion, with net profit margin improving to 23% from 18% in the previous period.

 

Segment Performance - Full Year 2024

• Bahri Oil: Revenue declined by 4% YoY to SAR4.60 billion, primarily due to lower charter-in revenues as the business unit shifted to prioritise utilization of its owned vessels over chartered ships, as well as its exit from non-crude oil shipping early during the year. EBITDA grew 11% YoY to SAR2.28 billion mainly driven by favorable freight rates, effective voyage planning which resulted in a two-fold increase in bunker subsidy, and higher utilization of the BU’s higher-margin owned vessels.

 

• Bahri Chemicals: Revenue rose by 19% YoY to SAR3.25 billion and EBITDA increased 31% YoY to SAR1.91 billion, reflecting cargo volume growth, strong freight rates, and effective cost management of the business unit’s owned vessels which recorded a 5% decline in operating cost and a three-fold increase in bunker subsidy.

 

• Bahri Integrated Logistics: Revenue grew by 13% YoY to SAR1.08 billion and EBITDA improved by 48% YoY to SAR198 million, driven primarily by strong performance of its breakbulk, roll-on/roll-off and container shipping segment amidst favorable market conditions, strong cargo demand and the addition of a multipurpose vessel to its fleet in early 2024.

 

• Bahri Dry Bulk: Revenue rose by 74% YoY to SAR489 million, driven by strong growth in cargo volume, supported by the acquisition of a new dry bulk carrier and increased deployment of chartered vessels to meet cargo requirements. EBITDA declined by 7% YoY to SAR126 million, reflecting margin compression from the increased revenue share of lower-margin chartered vessels.

  

Fleet Update

In 2024, Bahri added 11 vessels and divested six vessels as part of its fleet modernisation and expansion programme. Furthermore, the company leased an additional six chemical tankers on a long-term basis. As a result, Bahri’s operating fleet expanded to 109 vessels as of the end of 2024, compared to 98 vessels a year ago, excluding vessels on short-term leases.

 

Capital expenditures reached SAR5.48 billion in 2024, largely driven by a SAR4.82 billion investment in fleet modernization and expansion. SAR 524 million of cash proceeds from the sale of six older vessels during 2024 partially offset this investment.

 

Looking beyond 2024, three VLCCs and one dry bulk carrier – which had been delivered in Q4 2024 – will be operationalized in Q1 2025. Bahri has ordered seven other VLCCs which will likewise join the fleet by the first half of 2025, further strengthening Bahri’s operational capabilities and market presence. - TradeArabia News Service