National Shipping Co of Saudi Arabia profits halved.
NATIONAL Shipping Co of Saudi Arabia saw 2009 net profits fall 52% to Riyals362.8m ($xx), compared with Riyals750m for the corresponding 12 months in 2008.
NSCSA chief executive officer Humoud Al-Ajlan reported that the company, best known for its tanker operations, also saw 2009 fourth quarter net profit halve to Riyals48.1m, compared with Riyals96.1m for the same quarter 2008.
Mr Al-Ajlan, in a statement on the NSCSA website, explained that the profit decline ?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 at large, which faced tough market conditions in 2009.
NSCSA improved its market position by adding four 318,000 dwt VLCCs to its fleet in 2009, said the company.In June last year, NSCSA entered into a $300m joint venture in the dry bulk sector with Arabian Agricultural Services Co.