Bahri inks deal to purchase 9 VLCCs for SAR 3.75B

National Shipping Company of Saudi Arabia (Bahri) signed an agreement, on Aug. 19, with Capital Maritime & Trading Corp. to acquire nine very large crude carriers (VLCCs) for approximately SAR 3.75 billion ($1 billion).

 

This purchase is part of Bahri’s strategy to modernize its fleet.

 

In a statement to Tadawul, the company said it agreed with Capital Maritime to deliver the VLCCs to Bahri in several installments before the end of Q1 2025.

 

 

 

Bahri will pay 10% of the total deal value upon signing the purchase agreement, with the remaining amount due upon delivery of the VLCCs.

 

The company noted that the deal will be financed through a combination of bank facilities and internal cash resources, with no related parties involved.

 

Most of the nine VLCCs were built in South Korea and have an average age of 5.9 years. These VLCCs are equipped with emission filtration systems and high-efficiency energy solutions to reduce carbon emissions and minimize environmental impact, the statement added.

 

The deal will significantly contribute to the modernization of Bahri's fleet, particularly in the crude oil transportation segment, which currently operates a fleet of 40 VLCCs. It will also facilitate the gradual retirement of older vessels in the fleet.

 

The company stated that this deal will enhance its fleet's competitiveness, thereby increasing its revenue and profitability by securing higher earnings through these more modern, eco-friendly vessels. The high energy efficiency of the new VLCCs is expected to reduce operational costs.