The National Shipping Company of Saudi Arabia (NSCSA) achieved a profit of SR59.6 million in the first quarter of this year, compared to a loss of SR19.5 million for the same period of last year.

NSCSA CEO Eng. Abdullah Al Shuraim emphasised that the improvement in the financial results was due to increased revenues from crude oil transportation, which reached SR91.1 million in the first quarter of this year compared with SR43.2 million last year.

This was a result of a surge in oil prices in addition to an improvement in the performance of the company's VLCCs operated through an agreement with Vela International Marine, a subsidiary of Saudi Aramco.

The petrochemicals sector also achieved good results in the first quarter, compared to last year. The profits from National Chemical Carriers (NCC), Arabian Chemical Carriers (ACC) and the Tanker Uqba Ibn Nafi amounted to SR15.7 million compared with SR800,000 last year.

Eng. Al Shuraim indicated that performance improvements in the transportation of general and container cargo operated from the Far East and Southeast Asia to Europe after the launch of the newly-built 3.4400 teu container ships. The addition of the two major ports JNPT (India) and Karachi (Pakistan) to the USA-ISC service via Saudi Arabia added to the remarkable performance and good financial results of the liner sector. Revenues from liner services in the current period of this year also reached SR220.4 million, compared with SR196.6 million in the same period last year.

Eng. Al Shuraim also confirmed that the company had completed several IT projects to aid customer service, improve productivity and reduce costs. The most important of these is the linking of more than 850 customers from 70 cities around the world to a central computer through the Internet. This is considered one of NSCSA's most important achievements in linking all branches and agents worldwide to a central database. He further said that the company had also completed the design of its Internet site at www.nscsa.com

The latest results from NSCSA follow those for fiscal 2000, in which the company achieved an operational profit of SR58 million before adjustments, or a net loss of SR42 million, compared to a net loss of SR181 million in 1999.

Eng Al Shuraim indicated that, in order to achieve Saudi Aramco's Service Recognition Award of 'Marine Cargo Carrier of the year 2000', NSCSA had to compete with international shipping companies and finally won the award thanks to its excellent performance, punctuality and dedicated commitment to the needs of shippers and consignees.

Eng Al Shuraim said that NSCSA's five VLCCs were operated through charter agreements with Vela International. The VLCC operational results last year showed improvements, with gross income reaching SR243 million compared with SR200 million in 1999. This was achieved despite the increase in fuel prices by 7.6 per cent last year compared with 1999.

In the petrochemicals sector, Eng Al Shuraim announced that Mideast Ship Management Ltd (MSML), a joint venture company, had signed a contract with Sabic through which MSML would resume the technical management of two tankers owned by Sabic - the Noor-Yanbu and Noor-Jubail.

After inclusion of these two, the total number of vessels managed by MSML reached 25. He added that, by signing this contract, MSML was in the process of launching strategies and plans to raise the number of tankers/ships to 50, while at the same time focusing on improving performance, productivity and better services offered to the customer's ships and tankers.

NSCSA is now in the process of preparing future strategies for expansion in the transportation of crude oil, petrochemicals and containers. It is also planning to enter into the transportation of gas and oil by-products in order to strengthen its competitive position on the long range and to advance its administrative, operational and financial performances.