Financial Results in Summary

Bahri achieved unprecedented success during 2023 and ended the year with a strong bottom line at 55% growth in net profits compared to the prior year. Despite global economic and political challenges, Bahri managed to strategize its long-term objectives by being proactive with regards to market uncertainties. Strong tailwinds in TCE rates throughout the year coupled with effective fleet deployment resulted in a positive year for the Company. Further, timely induction of 10 eco-friendly Chemical Tankers (IMO2 MRs) in the previous year allowed Bahri to capture the increase in global demand for energy efficient tankers. In addition, Bahri focused on the reduction of costs posed due to ageing fleet and uplifted the cash base by efficiently disposing of old fleet, resulting in a notable gain. During the year, Bahri divested 2 VLCCs, 3 MR Tankers and 4 Chemical Tankers with a gain of SAR 225 million. The Company also acquired 2 eco-friendly Ultramax bulk carriers.

Bahri Group’s Financial Performance

Bahri Group recorded a year-end net profit of SAR 1,613 million in 2023 as compared to SAR 1,041 million in 2022. Bahri Oil recorded a profit before Zakat and tax of SAR 932 million, compared to SAR 772 million in 2022. The fluctuation in results was mainly due to an increase in the TCE rate, which jumped from an average of USD 35.3 thousand per day in 2022 to an average of USD 44.6 thousand per day in 2023.

Bahri Chemicals closed the year with a high profit before Zakat and tax of SAR 818 million compared to SAR 385 million in 2022, mainly due to the improvement of the TCE rate and the increase in the number of fleets. The average TCE rate increased significantly to USD 31.9 thousand per day in 2023 compared to USD 25.3 thousand per day in 2022. Further, gain on disposal of 4 Chemical Tankers, and the reimbursement of certain claims from the insurance company and supplier with respect to tanker coating resulted in an increase in profit for Bahri Chemicals.

The logistics segment yielded a net profit before Zakat and tax amounting to SAR 46 million in 2023, which is in line with the profits of 2022 amounting SAR 48 million.

Bahri Dry Bulk recorded a significant decrease in profit before Zakat and tax of SAR 59.2 million compared to SAR 122 million in 2022. The TCE rate decreased significantly to an average of USD 16.2 thousand per day in 2023 compared to USD 25.7 thousand per day in 2022.

In 2023, the share of results from equity-accounted investees was SAR 266 million in income (compared to SAR 60 million in 2022). These were a result of income from Petredec Group with SAR 406 million, which was offset by a loss of SAR 132 million from IMI and a loss of SAR 7.6 million from National Grain Company.