The National Shipping Company of Saudi Arabia (4030) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with revenue of SAR 9.48 billion (+8% YoY) and net profit of SAR 2.17 billion (+34% YoY), surpassing SAR 2 billion net profit for the first time.

• Expanded operating fleet by 11 vessels in 2024, with 6 older vessels divested, bringing the fleet to 109 vessels and further expansion planned for H1 2025.

• Strong demand and growth across all business units, especially in Chemicals and Integrated Logistics.

• Strategic milestones included the launch of two floating desalination barges and the Yanbu Grain Handling Terminal, providing new long-term revenue streams.

• Continued focus on fleet modernization, operational efficiency, and value-accretive growth.

Financial highlights

• Revenue reached SAR 9.48bn, up 8% YoY; EBITDA rose 23% to SAR 4.71bn, with margin improving to 50% from 44% in 2023.

• Net profit increased 34% YoY to SAR 2.17bn; EPS up 34% to SAR 2.94.

• Operating cash flow was SAR 3.47bn, down 3% YoY due to working capital timing and a high base in 2023.

• Net debt/EBITDA increased to 1.68x from 1.42x, reflecting higher capex for fleet expansion; net debt rose to SAR 7.90bn (+45% YoY).

• Capital expenditures totaled SAR 5.48bn (+233% YoY), with 88% invested in fleet modernization and expansion.

Outlook and guidance

• Poised for continued growth with 11 additional vessels joining in H1 2025, including at least 10 modern eco scrubber-fitted VLCCs.

• Plans to operationalize three VLCCs and one dry bulk carrier in Q1 2025, with seven more VLCCs joining by mid-2025.

• Secured a USD 800 million (SAR 3.00 billion) revolving credit facility in January 2025 to support ongoing capital needs.

• Focus on value-accretive growth, leveraging untapped volumes from key partners and new industry verticals.

• Ongoing fleet modernization and expansion to meet rising demand and support long-term value creation.