The primary reason for the increase in revenue this year compared to last year can be attributed to the improved performance of the Chemicals transportation sector. This sector witnessed a revenue surge of SAR 665 million, driven by increased operational activities and higher global shipping rates during the current year as opposed to the previous year. However, this increase was partially offset by revenue declines in some sectors, particularly the Oil transportation sector, which experienced a revenue decrease of SAR 323 million due to reduced operational activities. Additionally, the Logistics sector also saw a revenue decrease of SAR 136 million compared to last year.
As for the increase (decrease) in net profit during the current year compared to the previous year, several factors contributed to this change:
1. Gross Profit Increase: There was a notable increase in gross profit by SAR 602 million, primarily stemming from improved operational performance across multiple sectors within the Group. Specifically, the Oil transportation sector's gross profit increased by SAR 354 million, while the Chemicals transportation sector saw a boost of SAR 349 million compared to the previous year.
2. Other Income Increase: Other income witnessed an increase of SAR 153 million during the current year compared to last year. This increase was mainly driven by a realized capital gain of SAR 214 million from the sale of vessels as part of the fleet modernization plan, along with a substantial increase in recovered claims amounting to SAR 107 million (contrasted with SAR 17 million in the previous year).
3. Company's Share in Equity Accounted Investee Profits: The Company's share in results of equity accounted investee profits also contributed positively, with an increase of SAR 207 million. Additionally, income from Murabaha deposits increased by SAR 70 million during the current year compared to the previous year.
However, it's important to note that these positive factors were somewhat offset by an increase in finance costs by SAR 324 million due to rising interest rates during the current year compared to the previous year.
It's worth mentioning that certain comparative figures from the previous year have been reclassified to align with the presentation of the current year's financial data.
