#Saudi Arabia #Riyadh #Bahri #Net Profit Growth #Shipping Company

Bahri Reports Strong Financial Results for Q1 2025

The National Shipping Company of Saudi Arabia, known as Bahri, has recently announced its first quarter results for 2025, reporting an impressive 18% growth in net profit, amounting to SAR 533 million. This positive outcome is particularly noteworthy given the ongoing market challenges faced by the shipping industry, highlighting Bahri's resilience and strategic adaptability.

In terms of financial performance, Bahri's EBITDA for Q1 2025 reached SAR 1.20 billion, marking a 14% year-on-year increase. The company's ability to achieve growth despite a 6% decline in overall revenues, driven largely by reduced contributions from its oil transport divisions, showcases effective operational management. This robust performance has been supported by profitability recoveries in various business segments, including Integrated Logistics and Marine Services, and continues to be complimented by contributions from associated ventures such as the Petredec Group.

Speaking on the results, Eng. Ahmed Ali Al Subaey, the CEO of Bahri, underscored the diverse business portfolio's instinctive resilience, which has allowed the company to generate strong earnings even amid challenging economic conditions. He remarked on the positive EBITDA growth in their Oil and Dry Bulk divisions and praised the optimization strategies implemented within the Chemicals sector as effective countermeasures against market normalization.

Bahri's ongoing operational strategies also include a fleet modernization program. In Q1 2025, the company added four new vessels, resulting in its fleet achieving a notable total of 100 vessels, a significant milestone for the company. This expansion signifies Bahri's commitment to enhancing its operational capabilities and ensuring its competitive edge in the shipping market.

Despite the 6% year-over-year revenue drop, Bahri continues to capitalize on its diversified marketplace appeal, showcasing strength in its Chemicals, Dry Bulk, and Integrated Logistics sectors which have effectively mitigated losses from their Oil unit. Moreover, Bahri's turnaround in its Integrated Logistics business has been particularly important, marking the successful shift from previous losses to profitability.

Furthermore, the company registered a net debt-to-EBITDA ratio of 1.85x, reflecting a solid balance sheet against a backdrop of sustained profitability. This positions Bahri comfortably, enabling the company to explore further investments and opportunities for growth.

As the global maritime landscape evolves, Bahri remains steadfast in its pursuit of innovation and expansion. Notable strategic initiatives to look out for include the newly launched mobile seawater desalination barges, which offer a groundbreaking solution to growing water needs in Saudi Arabia and create a consistent revenue stream for the company.

In conclusion, Bahri’s Q1 results reflect its strategic focus and operational resilience, positioning the company to navigate through the headwinds of the shipping industry's current market challenges. As Bahri aligns itself with the Kingdom's Vision 2030 targets, its commitment to investing in sustainable and diversified growth strategies will play a key role in defining its future trajectory in the global maritime sector.