The National Shipping Company of Saudi Arabia (4030) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit rose 18% year-on-year to SAR 533 million, driven by margin expansion, diversification, and strong performance in integrated logistics and marine services, despite a 6% revenue decline to SAR 2.17 billion.

• EBITDA increased 14% year-on-year to SAR 1.2 billion, with margin improving to 55% from 45%, reflecting cost control and business mix.

• Fleet surpassed 100 owned vessels, with continued expansion and modernization, including the addition of five new vessels and divestment of one older VLCC.

• Strategic partnerships and new ventures, such as JVs in automotive logistics and alliances for LPG/ammonia shipping, advanced growth and diversification.

• All three desalination barges are now operational, providing stable, long-term revenue streams.

Financial highlights

• Revenue declined 6% year-on-year to SAR 2.17 billion, mainly due to lower oil and chemicals revenues.

• EBITDA reached SAR 1.2 billion, up 14% year-on-year, with margin improvements across several business units.

• Net profit rose 18% year-on-year to SAR 533 million.

• Net operating cash flow was SAR 490 million, down 29% year-on-year due to higher working capital needs.

• Capital expenditures reached SAR 1.7 billion, primarily for new VLCC deliveries.

Outlook and guidance

• Management remains optimistic about continued growth, citing untapped potential across all business units and ongoing fleet expansion.

• Three more VLCCs expected in upcoming quarters, with continued focus on modernization.

• Desalination business to provide stable, long-term revenue as all three barges are now commissioned.

• Cautious on freight rate outlook, focusing on agility and scenario planning rather than fixed forecasts.

• Board proposed increasing share capital and a SAR 1 per share dividend for 2025.