National Shipping Company of Saudi Arabia (Bahri) signed a non-binding memorandum of understanding (MoU) with National Gas and Industrialization Company (GASCO) on 3 October 2022 to set up a new business.

Under the 12-month agreement, the two parties will team up to develop a company that operates in land transportation and logistics services, according to a bourse disclosure.

Bahri noted that the financial impact of the partnership cannot be determined in the meantime.

It is worth noting that the Public Investment Fund (PIF), which holds a 22.55% stake in Bahri and 10.91% equity in GASCO, is a related party to the agreement.

During the first half (H1) of 2022, Bahri generated SAR 192.92 million in net profit after Zakat and tax, a 133.93% year-on-year (YoY) leap from SAR 82.47 million.

Meanwhile, the net profits after Zakat and tax of GASCO plummeted by 13.97% YoY to SAR 104.70 million in H1-22 from SAR 121.70 million.