Bahri inks $1 billion deal to buy nine VLCCs

Bahri has inked a purchase agreement to acquire nine VLCCs, the majority built in South Korea, with an average age of 5.9 years, and scrubber fitted, the company said in statement issued on the Saudi Stock Exchange.

The deal is valued at SAR3.75 billion ($1 billion) and the VLCCs are to be delivered in multiple batches before end Q1 2025. Bahri is paying 10% on the signing of the deal and 90% on delivery of the vessels.

Explaining the rationale for the vessel acquisitions Bahri said: “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.”

Bahri currently has a fleet of 40 VLCCs and the addition of the vessels from Capital Maritime will enable it to phase out older crude oil tankers. It said the newly acquired tankers would improve both the company’s revenues and profitability, benefitting from higher earnings and lower operating expenses.

The Saudi shipowner is one of the world’s largest owner and operator of VLCCs. The company has a fleet of 92 vessels that also include 36 chemical and product tankers, six multi-purpose vessels, and 11 dry bulk carriers.

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