Saudi's Bahri signs almost $1 billion deal for nine oil tankers

August 26 2024 Print This Article

As part of the Company’s ambitious fleet modernization plan, the National Shipping Company of Saudi Arabia (Bahri) announces that it has finalized a purchase agreement on 19 August 2024 with Capital Maritime and Trading Corporation to acquire nine Very Large Crude Carriers (VLCCs) for an approximate amount of SAR 3.75 billion (USD 1 billion).

The transaction will significantly advance Bahri’s fleet modernization plans, reinforcing its position among leading VLCC owners globally. The main purpose of this acquisition is to enable Bahri streamlining the process of phasing out older vessels in the fleet going forward.

Moreover, the transaction is poised to improve Bahri’s overall fleet competitiveness that 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.

The National Shipping Company of Saudi Arabia (Bahri) will acquire nine VLCCs from Capital Maritime and Trading Corporation for a purchase price of approximately SAR 3.75 billion (USD 1 billion).

Capital Maritime and Trading Corporation agreed to deliver the VLCCs to Bahri in multiple batches before end of Q1-2025. As for the payment schedule, it was agreed that Bahri will pay 10% of the total transaction amount upon signing the purchase agreement, while the remaining 90% to be paid upon delivery of the vessels.