Bahri, a global leader in Logistics and Transportation, recently announced that its Board of Directors is planning to issue free shares, expanding its capital to a total of SAR 4,921,875,000 equating to a 25% total increase.
As per the Bahri reports, this strategic initiative is to expand Bahri’s capital base for matching its assets and future projects. One share is to be issued for every four shares held 984,375 from the statutory reserve set to be capitalized.
Bahri also claimed to have shown exceptional flexibility, leading to a major improvement in the final quarter of 2021 compared to the previous quarter and the same period in 2020. Profits are up by 22% in the current quarter thanks to rising transport prices and greater demand for transport services, despite the economic difficulties resulting from the COVID-19 pandemic.
Eng. Abdullah Aldubaikhi, Bahri’s Chief Executive Officer stated: “Despite tremendous challenges that have negatively impacted transport prices, and the difficulties that have affected the profits of global companies worldwide due to falling transport prices and narrowing profit margins in oil and petroleum product transport, we have managed to distribute free shares and profits to our shareholders, a move which we are very proud of.”
Eng. Aldubaikhi noted that Bahri has shown great financial flexibility in one of the most difficult periods the transportation industry has ever faced, adding that the company is constantly working to enhance its services and find new opportunities to improve performance and reduce costs. This reflects the company’s ongoing strategy, which aims to preserve cash flow and direct more profits to shareholders.
The firm also claimed that despite falling net profits, the company has stayed true to its aim of distributing over 200% of the net profit for 2021 to shareholders. Last September, the Board of Directors decided to distribute over SAR 393 million in cash profits from the first half of 2021 to shareholders, a figure that well exceeded the net profit of SAR 192 million announced at the end of the year.
Press Release received on Mail from Bahri
