63
62
Bahri Annual Report
Bahri Finance Division
Bahri Annual Report
Bahri Finance Division
and thus radically addressing the industry’s systematic structural challenges. On the other hand, financial analysis show that Bahri’s current ratio increased by 0.6x (39%) during 2016, in comparison to 2015. This clearly demonstrates that Bahri seized the 3rd and 4th quarter, 2016 market opportunities. Despite the downward trend for Bahri’s operational revenue during 2016, in comparison to 2015; a quarterly comparison between its business units in 2016 and 2015, shows a noticeable increase in its operational revenue. In addition, the drop in operational revenue in 2016 was not uniform across all the quarters, rather, it oscillated between a decrease and increase. This showed that Bahri was able to seize the opportunities that presented themselves, despite the maritime sector’s turbulence, which was due to increased supply and a drop in demand. As such, Bahri’s financial results is considered higher and better than those of the sector as whole.
While many maritime companies were faced with overcapacity, which may lead them to sell their uneconomic and unwanted ships. Given their inability to cover their operating costs and interest payments, Bahri, through its gearing, net to EBITIDA and current ratio results, demonstrated its strong commercial and operational position. In 2016, leveraging its solid position, and despite the slight drop to its revenue, Bahri acquired new vessels. Moreover, while its net debt to EBITDA, show a 0.65x (24%). This slight increase is linked to Bahri’s strategic transformation that aims to leverage its commercial and business strength to address the sector’s structural challenges through a deliberate manner. Bahri’s overall objective is to drive towards deploying smarter decision-making applications, using Big Data that is expected to help achieve operational efficiencies, deepen customer engagement and ensuring long-term sustainable shareholder value. All of which will help create transformative impact on the maritime industry
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16
Graph no. 3: 2015 - 2016 Solvency
Return on Sales
19.77
%
23.48
27.17
31.62
26.71
26.48
18.91
24.26
Return on Total Equity
40.39
%
53.32
43.71
48.01
40.21
42.02
33.78
41.08
EBITDA Sales
25.49
%
35.89
31.65
36.70
30.50
31.32
22.58
28.73
Return on Assets
3.26
%
3.27
5.36
6.18
6.11
5.85
4.17
4.85
EBITDA Sales
3.12
%
3.13
5.12
5.93
5.84
5.59
3.98
4.64
Return on Assets
1.54
%
1.52
2.45
3.14
2.97
2.80
1.98
2.32
Return on Shareholders Equity
22.25
%
-26.93
-4.11
-8.81
10.13
6.42
10.24
29.98
15.00
12.50
10.00
7.50
5.00
2.50
0.00
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
Q2/16
Q3/16
Q4/16
Debt/Equity
Net Debt/EBITDA
Current Ration
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