Bahri Signs SAR 1.69 Billion Contract to Build 3 Very Large Crude Carriers

The National Shipping Company of Saudi Arabia (Bahri) signed a contract with International Maritime Industries to build and deliver three very large crude carriers (VLCCs) valued at approximately SAR 1.69 billion ($451 million).

Each carrier has a capacity of 320,000 deadweight tons (DWT), with deliveries scheduled in batches between 2029 and 2030, according to the company's disclosure to the Saudi Exchange (Tadawul).

Bahri intends to finance the contract through a combination of internal cash reserves and bank facilities, with the financial impact appearing on its financial statements upon delivery of the vessels and commencement of commercial operations.

International Maritime Industries is a related party, as Bahri owns a 19.9% stake in its capital. This brings the total number of vessels being built for Bahri in the Kingdom to nine, including six bulk carriers and three very large crude carriers.

What do these terms mean?

Very Large Crude Carrier (VLCC): A massive vessel designed to transport crude oil over long distances, typically with a capacity exceeding 200,000 deadweight tons.

Deadweight Tonnage (DWT): The maximum weight a ship can carry when loaded to its load line, including cargo, fuel, fresh water, stores, and crew, used to classify ship size.

Related Party: A company or individual connected to the firm by a financial or administrative interest, necessitating disclosure of transactions with them.

Disclosure: A company's announcement of material information to investors through the financial market.