Bahri Annual Report-2016

59

58

Bahri Finance Division

Bahri Finance Division

Bahri Annual Report

Bahri Annual Report

and cost of financing. In contrast, Bahri’s EBITDA registered a slight drop of 2.3% and a similar slight drop of 1.3% for its return on assets for 2016 in comparison to 2015.

Bahri managed to increase its return on sales (net profit margin) by 6.4% in comparison to 2015, during which it registered a 0.6 increase for its current ratio (from 1,55 to 2,15) between 2015 to 2016. This is contrast to Bahri’s competitors who suffered from financial hemorrhaging and negative cash flow in 2016. In addition, themaritime sector suffered from a steep drop in its profit, with the average rate for a dry bulk vessel reaching $5,000, which is not enough to cover the vessels operating costs

instability, Bahri was able to increase its cash and cash equivalent holdings by 72% in 2016 in comparison to 2015. In addition, the results show that the net change in cash and cash equivalent holdings had an upward trend during the same period, while Bahri’s competitors suffered from a severe drop in revenue coupled with their inability to post a profit during 2016.

During 2016, the maritime sector suffered from a lot of turbulence and challenges. As a result, maritime rates dropped significantly, which affected the sector’s overall stability. The only exception was the oil transport sector, which from the drop in oil prices. On the other hand, the other maritime sectors suffered from the worst downturn in over three decades. Despite this

Graph no. 1: 2015 - 2016 Consolidated Cashflow

Bahri’s 2016 Financial Performance & Comparison with 2015

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

-500,000

-1,000,000

-1,500,000

-2,000,000

Q1/15

Q2/15

Q3/15

Q4/15

Q1/16

Q2/16

Q3/16

Q4/16

Net cash used in investing activities Net change in cash and cash equivalents during the period

Net cash flows from operating activities Net cash from (used in) financing activities Cash and cash equivalents at the end of the period

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