Bahri said it had a net profit in the three months ending March 31 of 144.5 million SAR-Saudi Arabian Riyal ($38.5 million), a decrease of 9.7 percent from the same period in 2012.
Saleh N. Al-Jasser, the company's chief executive officer, said the main reason for the decrease was lower average time charter equivalent (TCE) rates achieved in the spot market for crude oil VLCC (very large crude carrier) transportation.
The company said although net profit decreased in the quarter, the average TCE rates achieved exceeded the average prevailing rates in the spot market during this quarter. This is mainly due to the fact that most of Bahri's VLCCs were employed within Aramco's crude oil transportation program as per an interim arrangement which became effective from Jan. 1, 2013, pursuant to the terms of an agreement for Bahri and Vela, the shipping arm of Aramco to merge.
In addition, there was an increase in net income of The National Chemical Carriers in which Bahri owns an 80-percent stake and 51.7 million SAR generated from disposal of two roll-on/roll-off vessels. - Chris Dupin