Under its ambitious fleet modernization plan, the National Shipping Company of Saudi Arabia (Bahri) recently announced that it has finalized a purchase agreement with Capital Maritime and Trading Corporation to acquire 9 very large crude carriers (VLCCs) for around SAR3.75 billion ($1 billion).
Fleet modernization
The addition of the new crude carriers will significantly advance Bahri’s fleet modernization plans, reinforcing its position among leading VLCC owners globally. The company said in a statement that the main purpose of this acquisition is to streamline the process of phasing out older vessels in the fleet going forward.
Bahri’s 9 new crude carriers will improve its overall fleet competitiveness which will raise the company’s revenues and profitability. Bahri will also benefit from the higher earnings from these modern eco-scrubber ships, as well as the reduced operating expenses driven by these cost-efficient crude carriers.
The construction of the majority of the crude carriers will be in South Korea, with an average age of 5.9 years. They are scrubber-fitted and equipped with high energy efficiency and low emission features to reduce environmental impact. The average deadweight tonnage (DWT) of each vessel is around 311,500.
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Oil transport business to get a boost
Capital Maritime and Trading Corporation agreed to deliver the carriers to Bahri in multiple batches before the end of Q1 of 2025.
Bahri agreed to pay 10 percent of the total transaction amount upon signing the purchase agreement and complete the rest of the payment upon delivery of the crude carriers. The company also added that it will finance the agreement through banking facilities and internally generated funds.
Bahri also revealed that it will utilize the vessels in its oil transport business unit to deliver crude oil cargoes for its customers. The oil transport business unit operates a fleet of 40 VLCCs.
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