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

Executive summary

• Q1 2025 net profit rose 18% year-over-year to SAR 533 million, driven by margin expansion, logistics turnaround, and new marine services, despite a 6% revenue decline to SAR 2.17 billion.

• EBITDA increased 14% year-over-year to SAR 1.2 billion, with margin expansion and diversified business performance.

• Fleet surpassed 100 owned vessels after net addition of seven ships, supporting operational scale and modernization.

• Strategic alliances and new ventures, including JVs for automotive logistics and partnerships for LPG/ammonia shipping, underpin diversification.

• Safety and sustainability remain core, with zero fatalities and oil spills, and a low lost-time injury frequency rate.

Financial highlights

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

• EBITDA margin expanded to 55% from 45% year-over-year, with net profit margin rising to 25% from 20%.

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

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

• Net debt rose 53% year-over-year to SAR 9 billion, with net debt/EBITDA at 1.85x.

Outlook and guidance

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

• Fleet modernization is a key pillar, with three more VLCCs expected in upcoming quarters.

• Desalination business to provide steady, long-term revenue, buffering shipping cyclicality.

• Board proposed increasing share capital from SAR 7,382 million to SAR 9,228 million via retained earnings to support growth.

• Dividend of SAR 1 per share recommended for 2025.