JEDDAH, 30 March 2006 — The board of directors of the National Shipping Company of Saudi Arabia (NSCSA) announced on Tuesday that the board chairman, Abdullah Saleh Al-Nojaidi, would become the company’s new managing director. The NSCSA’s board of directors also approved the resignation of the company’s president, Khalil Al-Gannas, who will step down on July 1. The board appointed Humoud Al-Ajlan, vice-president for finance, to be the company’s new president starting from July 1.
Last year, NSCSA made SR437.8 million ($116.7) in net profits under the management of Al-Gannas, showing a 2.3 percent increase from a year earlier. The company saw an increase in its profits despite a 7.9 fall in its operational revenues in 2005.
NSCSA shares rose 4.7 percent on Tuesday, the day of the announcement, and closed at SR312. The company’s earnings per share increased in 2005 to SR10.95 compared to SR10.7 a year earlier.
The major drop in the company’s revenue was in its oil transport operations. The company’ oil transportation revenues fell 20 percent from SR433.7 million ($115.6 million) to SR333.5 million ($88.9 million). The company expects its future revenues from its oil transportation operation to increase after the addition of six new oil tankers to its fleet this month.
NSCSA signed a $2.78 billion ($740 million) contract with the Korean Hyundai to build the four tankers. The tankers are expected to enter service in mid-2009.