The decrease in net profit in the current quarter compared to the same quarter last year can be attributed to several factors:
1. The logistics services sector experienced a decrease in net profit due to higher operating costs in the current quarter compared to the same period last year.
2. An increase in finance costs, amounting to SR 77 million, was caused by rising interest rates.
3. The reversal of trade receivables provision decreased by SR 36 million in the current quarter compared to the same period last year.
Despite these challenges, there was some mitigation in the form of increased other income, with a boost of SR 100 million. This increase was primarily driven by the collection of insurance claims totaling SR 60 million and a realized capital gain of SR 38 million from the sale of vessels as part of a fleet modernization plan.
In the case of the decrease in net profit in the current quarter compared to the previous quarter, the main reasons are as follows:
1. The oil transportation sector faced a reduction in revenue by SR 279 million due to lower global shipping rates in the current quarter compared to the previous quarter.
2. Profits from the group's share in equity accounted investee companies decreased by SR 93 million in the current quarter compared to the previous quarter.
However, the decrease in net profits was partially offset by an increase in other income, amounting to SR 38 million in the current quarter compared to the previous quarter. This increase was primarily due to a realized capital gain from the sale of vessels within a fleet modernization plan.
Finally, the increase in net profit during the current period compared to the same period last year can be attributed to the following factors:
1. Revenues increased significantly, driven by improved performance in multiple sectors. The oil transportation sector's revenues rose by SR 414 million, and the chemicals transportation sector saw a revenue increase of SR 623 million, thanks to improved global shipping rates during the current period compared to the same period last year.
2. Other income increased by SR 215 million during the current period compared to the same period last year. This increase was mainly due to a realized capital gain of SR 123 million from the sale of vessels within a fleet modernization plan, along with the collection of insurance claims totaling SR 60 million.
3. The group's share in results of equity accounted investee companies contributed to the increase in net profit, with a profit of SR 166 million during the current period compared to the same period last year.
However, an increase in finance costs by SR 294 million somewhat limited the growth in net profits, resulting from higher interest rates during the current period compared to the same period last year. It's important to note that certain comparative figures from the prior period have been reclassified to align with the presentation of the current period.
