The National Shipping Company of Saudi Arabia, “Bahri” (4030), has signed a Murabaha financing agreement with “Alinma Bank” (1150) valued at USD 756 million (SAR 2.8 billion).
Financing a massive acquisition
Bahri, a global leader in logistics and transportation services, intends to use the funds to finance around 70% of its acquisition of nine very large crude carriers (VLCCs).
This deal, worth approximately SAR 3.7 billion (USD one billion), was concluded with Capital Maritime & Trading Corporation last August.
The financing agreement will have a term of 10 years and will be secured by a mortgage on the purchased oil tankers.
The company noted that Bahri board member Abdulmalek bin Abdullah Al-Hogail has an indirect interest because he also serves as the chairman of Alinma Bank.
So what
The oil tanker acquisition is part of Bahri’s efforts to accelerate its fleet modernization plans.
This enhances its “global position” among major owners of very large crude carriers.
It also aligns with the company’s long-term strategic objectives and Saudi Vision 2030 strategy which aims to position KSA as a global logistics hub.
The deal will significantly boost the competitiveness of the company’s oil transportation fleet and will result in considerable savings, given its low energy consumption to comparable units.
Bahri is scheduled to receive the tankers in several batches before the end of Q1 2025.
The company has agreed to pay 10% of the total value of the deal upon signing the purchase agreement. The remainder is due upon delivery of the tankers.
Some context
Saudi Arabia is the world’s largest oil exporter, holding about 17% of global oil reserves.
Bahri operates a fleet of 40 very large crude carriers, each with a capacity of 2.2 million barrels.
This makes it the largest fleet of its kind in the world, according to the company’s website.
Bahri’s net profit surged 48% YoY Q2 2024 to reach SAR 733.2 million.
Its revenues rose 15.3% to SAR 2.7 billion during this period.
