Saudi Arabia's Bahri purchases nine VLCCs for US$1 billion

As part of its fleet modernisation plan, the National Shipping Company of Saudi Arabia (Bahri) has finalised a purchase agreement with Capital Maritime and Trading Corporation (CMTC) to acquire nine very large crude carriers (VLCCs) for an approximate amount of SAR3.75 billion (US$1 billion).

The main purpose of the acquisition is to enable Bahri to streamline the process of phasing out older vessels in its fleet going forward.

The transaction will also improve Bahri’s overall fleet competitiveness, which will lead to enhancing the company’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.

CMTC has agreed to deliver the VLCCs to Bahri in multiple batches before the end of the first quarter of 2025. As for the payment schedule, it was agreed that Bahri will pay 10 per cent of the total transaction amount upon signing the purchase agreement, while the remaining 90 per cent will be paid upon delivery of the vessels.

The transaction will be financed by a mixture of banking facilities and internally generated funds.