Bahri, the Saudi-based transportation giant, experienced a decreased net income to SR224.9 million in the first half of 2019, affected by the shipping crisis in the region. CEO, Abdullah Aldubaikhi commented that ‘The financial results achieved for the first half of 2019 reflect the difficulties that the region is going through, which impacted the whole maritime shipping industry.’
Specifically, the company reported growth in revenues and operating income for the first six months of 2019. In the meantime, the 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.
The CEO added that the income from the oil transportation sector increased by 8% the first half of 2019, in comparison to the same period last year.
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.
… commented Abdullah Aldubaikhi.
Concerning the shipping crisis that is taking place in the industry, tensions in the Gulf peaked the last couple of months, beginning from the US blaming Iran for the attack of tankers in and near the Gulf, which Iran denies.
The first incident, in May, the UAE said that four vessels were sabotaged at the Fujairah port. Also, in June, the shipping industry was present in an additional attack that took place in the Gulf of Oman against two vessels. The IMO Secretary General, the International Chamber of Shipping and INTERTANKO expressed their concerns, noting that this is an intolerable situation threatening the lives of seafarers, the environment and the world economy.
Despite these attacks, UK Royal Marines seized the Iranian ‘Grace 1’, near Gibraltar over suspected breach of EU sanctions earlier in July, and could only be released if the UK is guaranteed the oil is not bound for Syria.
Concluding, the ongoing tensions in the area seem to be a challenge for the shipping industry to collaborate; Thus, Reuters provided a timeline of the events that feed the escalated tension among major state players, like US and Iran.
