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National Shipping Company Of Saudi Arabia Announces The Annual Financial Results For The Period Ending On 31-12-2015

24 FEB 2016

NET PROFIT (LOSS) 1,817.53 533.84 240.46
GROSS PROFIT (LOSS) 2,196.61 674.23 225.8
OPERATIONAL PROFIT (LOSS) 1,980.3 575.35 244.19


All figures are in (Millions) Saudi Arabia, Riyals


REASONS OF ANNUAL FINANCIAL RESULTS The increase in net income for the current period compared to the corresponding period is mainly due to:
- An increase in operating revenues as a result of the increase in VLCC fleet after completing the merger of Vela Marine International Ltd. assets and operations with Bahri assets and operations, buying and receiving several VLCCs and chemical tankers during 2015, as the fleet in 31/December/2015 consists of seventy five vessels; from which 33 are VLCCs and 26 are chemical tankers.
- The full employment of VLCCs fleet through entering in new markets and signing new long term agreements with several new costumers in both Crude Oil and General Cargo transportation sectors, in addition to the increase in transportation activities with existing costumers.
- The increase in the operating revenues and net income of General Cargo Transportation sector due to the improvement of the operating and commercial performance.
- The increase in average Time Charter Equivalent (TCE) rate in crude oil transportation spot market compared to 2014.
- The increase in net income for Chemical Transportation Sector as a result of a better operating performance and a decrease in voyage related expenses.
- A decrease in average bunker prices in all the sectors.
- Increasing the operating efficiency through establishing a cost saving program and improving the performance of ship management sector which resulted in achieving lower operating expenses and lower average operating expenses. 
- Increase in profit from Petredec Limited (30.3% owned by Bahri) by SAR 53 million (SAR 185 million compared to SAR 132 million in the corresponding period of last year).
RECLASSIFICATIONS IN ANNUAL FINANCIAL RESULTS Some items in the financial statements have been reclassified for comparison purposes.
OTHER NOTES The earnings per share for the period is SAR 4.62, compared to SAR 1.58 for the corresponding period of previous year. 
On 15, September, 2014, the number of outstanding shares has increased from 315 million to 393.75 million shares. The earnings per share was calculated based on outstanding number of shares in 2015, and based on the weighted average number of outstanding shares in 2014 (number of outstanding shares in current period: 393.75 million shares, corresponding period of 2014: 338.41 million shares).