Riyadh – Mubasher: The National Shipping Company of Saudi Arabia (Bahri) on Wednesday reported a sharp drop in profits for the full year 2017 on the back of higher prices in shipping oil.

Bahri’s profits more than halved, falling 53.4% to SAR 800.3 million ($213.413 million) in 2017 from SAR 1.72 billion ($458.667 million) in 2016.

The company attributed the profit drop to a decline in global shipping prices in general as well as lower prices for shipping oil and chemicals in particular, according to a filing to the Saudi Stock Exchange (Tadawul).

A rise in the cost of shipping fuel following the rise in oil prices compared to 2016 and lower profits from its stake in 30.30%-owned subsidiary Petredec Co  and higher tax provisions also contributed to the profit fall, Bahri said.

Bahri’s financing expenses also increased in 2017 to support the company’s expansion in its fleet.

The Saudi shipping company said its revenues amounted to SAR 6.05 billion in 2017, down 11% from SAR 6.79 billion in 2016.

Bahri had previously reported a 58.08% drop in profits to SAR 593.28 million in the nine-month period from January to September 2017, compared to SAR 1.4 billion in the same period in the year earlier.

Bahri’s stock closed Wednesday down 0.3% to SAR 29.50.

In December, Bahri appointed a new CEO to support its growth plans.