Riyadh – Mubasher: The National Shipping Company of Saudi Arabia (Bahri) finalised a purchase agreement on 19 August 2024 with Capital Maritime and Trading Corporation, according to a bourse disclosure.
In line with its ambitious fleet modernisation plan, Bahri is set to acquire nine very large crude carriers (VLCCs) for nearly SAR 3.75 billion ($1 billion).
The transaction will reinforce Bahri’s position among leading VLCC owners globally, streamlining the process of phasing out older vessels in the fleet going forward.
It will also boost the group’s revenues and profitability, as Bahri will benefit from the higher earnings from these modern eco-scrubber ships as well as the reduced operating expenses driven by these cost-efficient VLCCs.
Capital Maritime and Trading Corporation agreed to deliver the VLCCs to Bahri in multiple batches before the end of the first quarter (Q1) of 2025.
Under the agreement, Bahri will pay 10% of the total transaction amount upon signing the purchase agreement, while the remaining 90% will be paid upon delivery of the vessels.
Meanwhile, the transaction will modernise Bahri’s fleet, particularly its Oil Transport business unit which currently operates a fleet of 40 VLCCs.
In the first half (H1) of 2024, Bahri posted 20.06% year-on-year (YoY) higher net profits at SAR 1.18 billion, compared to SAR 987.87 million.
