Bahri’s 3Q net income jumps nearly tenfold to SAR 5.1 bn on higher VLCC freight rates

Higher VLCC freight rates and more chartered-in tankers drove Bahri’s 3Q earnings up nearly tenfold. Net income at Saudi Arabia’s National Shipping Company (Bahri) rose 891% y-o-y to SAR 5.1 bn in 3Q, while revenue jumped 504% to SAR 14.8 bn, according to its earnings release pdf.

Bahri Oil drove most of the increase: The tanker unit’s revenue rose 913% y-o-y to SAR 13.3 bn, and the company credited higher realized freight rates for very large crude carriers (VLCCs), driven by regional disruptions and heightened maritime security risks, alongside a significant increase in charter-in activity. Integrated logistics revenue roughly doubled to SAR 497 mn, chemicals and products rose 5% to SAR 793 mn, and dry bulk climbed 38% to SAR 149 mn.

3Q accounted for about half of Bahri’s 9M net income, by our math: Net income for 9M rose 587% y-o-y to SAR 9.98 bn, and revenue climbed 268% to SAR 26.1 bn. Bahri Oil accounted for SAR 18 bn of the revenue increase, followed by integrated logistics at SAR 429 mn, chemicals at SAR 270 mn, and dry bulk at SAR 139 mn, according to a Tadawul disclosure.

Conflict-related incidents affected four of Bahri’s vessels during 9M, and two crew members were killed. Two of the vessels have returned to service after repairs and two remain under repair. Bahri operated 109 vessels at end-September, 107 owned and two on long-term lease, against 117 a year earlier, after selling a VLCC and a chemical tanker for net proceeds of SAR 270 mn.

Bahri has ordered three VLCCs from Saudi shipbuilder International Maritime Industries (IMI) for SAR 1.69 bn, due in 2029-2030. It added three second-hand medium gas carriers for LPG and ammonia. The first was delivered in September, and the other two are due in 4Q 2026 and 1Q 2027. It ordered two RoCon (roll-on/roll-off and container) vessels for SAR 776 mn in 3Q for delivery in 2030. After the quarter closed, it signed a SAR 1.69 bn agreement with Saudi shipbuilder International Maritime Industries (IMI) for three VLCCs, due in 2029-2030.