Bahri’s Q2 exceeds estimates, says Aljazira Cap

The National Shipping Company of Saudi Arabia (Bahri) reported net income of SAR 185.4 million up 20.5 percent year-on-year) in Q2 2018, beating Aljazira Capital’s estimates and market consensus of SAR 152.1 million and SAR 153.1 million, respectively, AJC said in an earnings review.

Revenue stood at SAR 1.49 billion, increasing 7.6 percent YoY, in line with estimates of SAR 1.48 billion.

 “We maintain our “Overweight” recommendation with TP of 35.2/share,” the brokerage said.

Gross profit stood at SAR 334.5 million, up 25.0 percent YoY, above estimates of SAR 316.3 million.

Gross margin increased by 311 bps YoY, standing at 22.3 percent, compared to Aljazira’s forecast of 21.3 percent.

Operating profit at SAR 305.5 million showed an increase of 28.3 percent YoY, above estimate by 14.3 percent.

Shipping rates remained under pressure during H1 2018.

“We expect shipping rate to continue its current trajectory for the year…Lower shipping rate is the main down side risk to valuation. While, higher than expected shipping rate, along with higher margins and lower OPEX are the main upside risk”, Aljazira added.