Saudi Arabia Shipping Company Bahri Achieves Record Financial Milestones In 2024
In 2024, The National Shipping Company of Saudi Arabia, known as Bahri, achieved unprecedented financial outcomes, setting new records in its revenue and net profit margins. The company's revenue soared to SAR 9.48 billion, bolstered by an increase in cargo volumes and an expansion in its fleet, alongside a rise in freight rates across the board.
This culminated in a noteworthy net profit of SAR 2.17 billion for the year, marking a significant growth to a 23% net profit margin, up from 18% in the preceding year. The fourth quarter alone witnessed a revenue of SAR 2.22 billion and a net profit of SAR 474 million, indicating year-on-year growths of 10% and 18% respectively.
Bahri's achievements in 2024 underscored its pivotal role in the shipping and logistics sector, not only within the Kingdom but on a global scale. "2024 was more than just a record-breaking year for Bahri – it was a pivotal year that laid the foundation for our future," stated Eng. Ahmed Ali Al Subaey, CEO of Bahri.
He highlighted the strategic expansions and modernizations within their fleet, capturing new demand while maintaining a steadfast commitment to operational excellence and resilience amidst market volatility. These moves were instrumental in reinforcing Bahri's market leadership and aligning with Saudi Arabia's Vision 2030 for the shipping and logistics sector.
The company's performance during the last quarter of 2024 showcased a robust 10% increase in revenue to SAR 2.22 billion, with the net profit climbing by 18% to SAR 474 million, compared to the same period the previous year. This growth was primarily fueled by the expansion of Bahri's operating fleet, which led to an uptick in cargo volumes and benefitted from higher freight rates. The company also saw its EBITDA margin increase to 50% from 49% in the fourth quarter of 2023, attributed to improved cost efficiencies, including voyage optimization and fleet modernization.
Over the entire year, Bahri witnessed a revenue increment of 8% to SAR 9.48 billion and a remarkable 34% increase in net profit to SAR 2.17 billion, owing to the strategic fleet expansion and optimization of operational costs. The Chemicals and Oil business units, alongside income from associated companies, propelled the EBITDA growth by 23% to SAR 4.71 billion. The net profit margin saw an improvement, reaching 23% from the previous 18%, reflecting the company's effective cost management and strategic growth drivers.
Focusing on segment performance, Bahri's diverse units displayed varied outcomes. The Oil sector experienced a slight revenue dip by 4% to SAR 4.60 billion, primarily due to strategic shifts in vessel utilization. However, it achieved an 11% increase in EBITDA, benefitting from favorable freight rates and efficient voyage planning.
On the other hand, Bahri Chemicals and Integrated Logistics segments registered impressive revenue growths of 19% and 13% respectively, with corresponding EBITDA increases, showcasing strong market demand and effective cost management. However, the Dry Bulk segment, despite a substantial 74% revenue increase, faced a 7% EBITDA decline, highlighting the challenges of balancing chartered vessel costs with margin pressures.
In 2024, Bahri expanded its fleet by adding 11 vessels, reflecting a strategic move towards modernization and growth, and ended the year with a total fleet of 109 vessels. This expansion was part of a significant capital expenditure of SAR 5.48 billion, focused largely on fleet modernization. The anticipated operationalization of new vessels in the following quarter and the addition of seven more VLCCs by the first half of 2025 underscore Bahri's commitment to enhancing its service capabilities.
Moreover, Bahri's strategic initiatives and achievements throughout the year, including the launch of its second seawater desalination barge and the commencement of the Yanbu Grain Handling Terminal, highlighted its dedication to contributing to Saudi Arabia's food security and water supply resilience. The formation of strategic partnerships and recognition as "Shipping Company of the Year" and "Tanker Operator of the Year" further validated Bahri's excellence and leadership in the maritime sector.
As Bahri looks beyond 2024, its strategic direction and investments promise to further solidify its position as a key player in the global shipping and logistics market, driving sustained growth and contributing to the transformation of the Kingdom's shipping and logistics sector.
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