NSCSA Financial Results for the 12 months ended 31st December 2009

Jan 19, 2010

Mr. Humoud A. Al-Ajlan, Chief Executive Officer of The National Shipping Company of Saudi Arabia (NSCSA) announced today NSCSA 12 month financial results ending 31st December 2009

NSCSA achieved a net profit for 12 months up to December 31st, 2009 of SAR 362.8 million (EPS SAR 1.15) compared to a net profit of SAR 750 million (EPS SAR 2.38 ) for the corresponding period for the year 2008, a decrease of 52%. The net profit of the 4th Quarter 2009 was SAR. 48.1 million compared to SAR. 96.1 million for the same quarter 2008 which reflected a decrease of 50%.

Mr. Al-Ajlan explained that the decline of profit was mainly due to lower Average daily Time Charter Equivalent rates in spot market pressed by a combination of both lower oil demand and overcapacity of tonnage available in the markets. The markets of the General Cargo sector have been affected by lower freight rates and lower cargo volumes.

Mr. Al-Ajlan pointed out that NSCSA has performed relatively well compared to the shipping industry which faced tough market conditions in 2009. NSCSA has improved its market position by adding 4 VLCCs to its fleet in 2009.

NSCSA press release