Bahri, the Saudi Arabia shipping giant, has reported a net profit of $1.36 billion (5.1 billion Saudi Riyals) for the third quarter of this year. This figure represents a tenfold increase compared to the $137 million (513 million Saudi Riyals) profit in the same period last year. This significant increase is mainly related to the activities of Bahri's oil unit.
Significant Profit Increase Compared to the Second Quarter
Bahri's profit has also increased by 85% compared to the second quarter of this year. This profit growth is due to prolonged disruptions in the Strait of Hormuz and the rise in oil tanker rates to their highest level at the end of the third quarter. The cost of transporting crude oil reached its historical peak last month, as the Iran conflict altered routes and trade patterns, causing more ships to engage in inefficient and lengthy voyages.
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Factors Influencing Revenue Increase
The increase in oil flows from the Strait of Hormuz, mainly due to ship-to-ship (STS) transfers in the Gulf of Oman, has caused supertankers to wait for these transfers outside the Strait of Hormuz for several weeks, resulting in a limited number of Very Large Crude Carriers (VLCCs) for other key global oil trade routes. Consequently, tanker owners and operators have recorded windfall revenues.
Bahri, which primarily exports Saudi crude oil, has seen revenue increases across all its business units. However, the oil unit of Bahri has performed better with a revenue increase of $3.2 billion (12 billion Saudi Riyals) in the third quarter compared to last year. Compared to the previous quarter, this unit's revenue increased by $2.3 billion (8.6 billion Saudi Riyals). Bahri has stated that this is mainly due to increased operational activities and high global shipping rates.
Overall, Bahri's revenues have increased by more than 500% compared to last year, reaching $3.9 billion (14.8 billion Saudi Riyals). This figure is also more than double Bahri's second quarter revenues of $1.7 billion (6.3 billion Saudi Riyals).
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