Mubasher: National Shipping Company of Saudi Arabia’s (Bahri) second quarter financial results came in coinciding with Al Rajhi Capital Research estimates, according to a recent report.
Bahri’s gross profits of SAR 573 million were marginally lower from Al Rajhi estimate of SAR 585 million, the report said, adding “indicating the revenue (yet to be disclosed) will be closer to our estimate.”
“Our estimates factored in sequential decline in TCE rates (for VLCCs) in-line with global trends. Lower day rates and higher bunker costs (due to rise in crude prices in Q2 vs. Q1) helped normalise gross profit to SAR 573 million (SAR 748 million in Q1 2016), closer to our estimate of SAR 585 million,” it added.
Operating profit and net profit by Bahri were also in-line with the estimates, Al Rajhi added.
“We retain our target price of SAR 45.2 per share, however we upgrade Bahri to overweight rating, due to the recent correction in stock price,” it added.
