The National Shipping Company of Saudi Arabia (4030) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 was SAR 940 million on revenue of SAR 4.63 billion, with Q2 net profit at SAR 407 million, reflecting increased deployment of a larger owned fleet and strategic expansion into desalination and logistics.

• Achieved record 2024 results, with 19 vessels added over the past 12 months, expanding the owned fleet to 103 vessels as of Q2 2025.

• All three desalination barges are now commercially deployed, providing 150 million liters/day under a 20-year offtake agreement and supporting stable cash flows.

• Shareholder returns were enhanced with a SAR 1.00 per share cash dividend and a 25% bonus share issuance.

• Strategy focused on value-accretive growth, diversification, and operational optimization.

Financial highlights

• H1 2025 revenue declined 8% YoY to SAR 4.63 billion, with EBITDA down 5% to SAR 2.30 billion and net profit down 21% to SAR 940 million; Q2 2025 revenue was SAR 2.46 billion, down 9% YoY, and net profit was SAR 407 million, down 44% YoY.

• Capital expenditures surged 119% YoY to SAR 3.37 billion in H1 2025, mainly for vessel acquisitions.

• Free cash flow was negative SAR 2.21 billion in H1 2025, compared to a positive SAR 179 million in H1 2024.

• Net debt increased 76% YoY to SAR 10.02 billion, with net debt/EBITDA at 2.19x.

• EPS for H1 2025 was SAR 1.02, down 21% YoY.

Outlook and guidance

• The company expects continued margin resilience by leveraging its larger, younger fleet and cost efficiencies.

• Bahri Oil maintains a cautiously optimistic outlook, with potential upside from OPEC+ quota increases and geopolitical risk premiums, but notes ongoing economic uncertainties.

• Bahri Chemicals and Dry Bulk anticipate challenging market conditions and will focus on optimizing fleet deployment and selective chartering.

• Integrated Logistics will scale commercial operations and advance infrastructure projects, including a bonded zone warehouse in Jeddah.

• Capital commitments for ongoing projects under construction stood at SAR 100 million as of 30 June 2025.