Saudi shipping company Bahri has signed a SR1.69 billion contract with International Maritime Industries to build three very large crude carriers. The agreement, valued at $451 million, expands the company fleet and supports domestic shipbuilding.
Each vessel has a capacity of 320,000 deadweight tonnes. Deliveries are scheduled in batches between 2029 and 2030, according to a Saudi Exchange filing.
The agreement was signed and will be financed through a combination of Bahri internal cash resources and banking facilities. This investment forms part of a fleet modernisation strategy.
The financial impact will be reflected in financial statements after the vessels are delivered and begin commercial operations. The new order brings Bahri total orders for vessels built in the Kingdom to nine, comprising six dry bulk carriers and three crude oil tankers.
An earlier order signed with International Maritime Industries was valued at SR762 million. It covers six geared Ultramax dry bulk vessels, each with a capacity of 62,823 deadweight tonnes. Those vessels are scheduled for delivery between 2028 and 2029.
The dry bulk vessels are designed to serve ports with limited infrastructure, allowing Bahri to expand into additional markets and trade routes.
International Maritime Industries is a related party because Bahri owns 19.9 percent of its capital. Bahri chief executive officer and board member Ahmed Ali Al-Subaey also serves on the board of International Maritime Industries, the filing disclosed.
The tanker order follows Bahri completion of a separate $1 billion acquisition of nine very large crude carriers from Greece-based Capital Maritime and Trading Corp. That transaction involved vessels built in South Korea.
Bahri continued expanding and renewing its fleet during the second quarter by acquiring five chemical tankers and selling an older very large crude carrier. Its owned fleet stood at 107 vessels at the end of June, alongside two vessels under long-term leases.
The company reported a second-quarter net profit of SR2.75 billion, an increase of 574 percent year on year. Management attributed the rise primarily to the crude oil transport business, which benefited from higher freight rates and increased vessel chartering to meet customer demand.
