Bahri CEO says half-year financial results reflect 'the difficulties that the region is going through'
Bahri, the Saudi-based transportation giant, has seen its net income fall to SR224.9 million for the first six months of 2019 as the region's shipping crisis took impact.
CEO Abdullah Aldubaikhi said its half-year financial results reflected "the difficulties that the region is going through, which impacted the whole maritime shipping industry".
Tensions in the Gulf have spiked in recent months, with the US blaming Iran for a series of tanker attacks in and near the highly strategic Strait of Hormuz, charges Iran denies. The Strait is the conduit for nearly a third of the world's crude oil.
Britain on Thursday ordered its navy to escort UK-flagged ships through the Strait of Hormuz after Iranian soldiers seized a tanker in the flashpoint entrance to the Gulf.
The week-long standoff over the British-flagged Stena Impero and its 23-member crew has inflamed tensions between the Islamic republic and the United Kingdom.
Aldubaikhi added: "Despite all these challenges, Bahri continues with its efforts to improve operations, adapt to the new developments and changes in the maritime industry, and maintain shareholder interest. Bahri remained committed to its innovative programs and cost-efficient initiatives that contributed to easing the impact on the financial results for the period.”
The company reported growth in revenues and operating income for the first six months of 2019. Revenues reached SR3.14 billion and operating income SR581.47 million, recording an increase of 6 percent and 3 percent respectively compared to the same period last year.
However, net income reached fell to SR224.9 million from SR308.54 million for the same period last year.
Bahri said its revenues from the oil transportation business unit grew by 8 percent in the first six months of 2019 compared to the same period last year. Revenues from the remaining business units recorded a growth of 5 percent.