Saudi shipping company Bahri reported a net profit of SR5.09 billion for the third quarter. This marked an 890.7 percent increase compared to the same period a year earlier, when profit attributable to shareholders stood at SR513.36 million.
Revenue for the three months ending in September climbed 503.7 percent to reach SR14.83 billion. Regional conflicts and security risks have disrupted maritime corridors across the Middle East, pushing up tanker rates and reducing vessel availability.
Analytics firm Kpler said freight rates for very large crude carriers on the Middle East Gulf to China route hit a record $28.28 per barrel in September, up by $12.90 from August. Longer turnaround times and limits on ship-to-ship transfers tightened market capacity during the quarter.
Bahri Oil drove the financial expansion. Quarterly revenue surged 913 percent to SR13.33 billion as higher tanker rates stemmed largely from regional disruptions, prompting the firm to hire extra vessels to meet rising customer demand.
Bahri Chief Executive Officer Ahmed Ali Al-Subaey said the company operated in a complex environment. He noted that the loss of two crew members was a profound reminder of operational conditions and reinforced the responsibility to protect staff.
Looking ahead, Al-Subaey stated that the company is entering its next phase of growth from a strong position. Bahri is modernising its fleet, strengthening core logistics, and expanding selectively into gas and ammonia transportation.
The oil business generated a SR4.4 billion increase in gross profit year on year during the quarter. Bahri also benefited from a SR240 million increase in its share of earnings from equity-accounted investments, higher finance income, and lower financing costs, though these gains were partly offset by a SR102 million drop in net other income.
Despite the profit surge, the group margin on earnings before interest, tax, depreciation, and amortisation fell to 39 percent from 51 percent a year earlier. Bahri attributed this decline to a larger contribution from lower-margin hired vessels.
For the first nine months of the year, net profit rose 586.7 percent to SR9.98 billion, while revenue increased 268.4 percent to SR26.1 billion. Earnings per share reached SR10.82, compared to SR1.58 in the previous year.
Bahri entered the liquefied petroleum gas and ammonia transportation market during the quarter by acquiring three second-hand medium gas carriers. The company also disclosed that conflict-related incidents affected four owned vessels during the first nine months, leading to two crew fatalities and ongoing repairs.
