The National Shipping Company of Saudi Arabia (4030) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 reached SAR 5,025 million, up from SAR 4,727 million year-over-year, with Q2 2024 revenues at SAR 2,712 million, a 15% YoY increase.

• Net profit for the six-month period was SAR 1,308 million, up 20% YoY, with Q2 2024 net profit rising 48% YoY to SAR 733 million, driven by higher shipping rates, increased volumes, and cost efficiencies.

• The group operates 88 owned vessels and 16 leased vessels, with recent fleet expansion including two VLCCs, one multipurpose vessel, and six chemical tankers on long-term lease.

• Strategic focus remains on fleet modernization, market expansion, and partnerships aligned with Vision 2030.

• Total assets increased to SAR 25,217 million as of 30 June 2024, from SAR 23,106 million at year-end 2023.

Financial highlights

• Gross profit for the six months was SAR 1,533 million, up from SAR 1,196 million year-over-year.

• H1 2024 EBITDA reached SAR 2,419 million (+17% YoY), with an EBITDA margin of 48%.

• Earnings per share for the six months rose to SAR 1.61 from SAR 1.34 year-over-year.

• Cash and cash equivalents stood at SAR 3,094 million at 30 June 2024, up from SAR 2,913 million at year-end 2023.

• Net debt at end-June 2024 was SAR 5.69 billion, down 15% YoY.

Outlook and guidance

• Management expects the remaining two floating desalination stations to be completed in 2024, supporting future growth and long-term revenue streams.

• Continued focus on value-accretive growth through fleet expansion and modernization, with strategic partnerships supporting Vision 2030.

• No significant subsequent events were identified post-period end that would materially impact the financial position.