Bahri Signs 1.692 Billion-Riyal Contract to Build 3 VLCCs
Key Facts
Saudi National Shipping Company Bahri signed a contract with International Maritime Industries to build and deliver 3 very large crude carriers, for a value of about 1.692 billion riyals, or about 451 million dollars, Al-Sharq Al-Awsat reported on October 25, 2026. Each vessel will have a capacity of 320,000 deadweight tons, with the ships to be delivered in stages during 2029 and 2030. The deal expands Bahri’s crude oil transport capacity, but will not have an immediate financial impact upon signing. The company said its effect will appear in its financial statements after the ships are received and begin commercial operations. The contract runs until delivery of the final vessel, with deliveries spread over two years. Bahri is financing the project through a mix of internal cash resources and bank facilities, according to the company as cited in the report.
The new order brings to 9 the number of vessels being built in Saudi Arabia for Bahri, comprising 6 bulk carriers and 3 very large crude carriers. This total includes the new contract alongside the earlier order for 6 vessels; it does not mean the company contracted for all the vessels since the start of 2026. In October 2025, Bahri signed a 762 million-riyal contract with International Maritime Industries to build 6 Ultramax-class bulk carriers. Each has a capacity of 62,823 deadweight tons and is scheduled for delivery between 2028 and 2029. Bulk carrier deliveries will therefore precede the start of deliveries of the new tankers, which are due in 2029 and 2030. Together, the two orders expand the company’s capacity to transport crude oil and bulk cargo, with construction taking place in Saudi Arabia.
Bahri has an ownership and governance relationship with International Maritime Industries, according to a disclosure reported by Arab News. Bahri owns 19.9% of the company’s capital, and Bahri Chief Executive and board member Ahmed Ali Al-Subaie holds a seat on International Maritime Industries’ board. The disclosure described the company as a related party. This connection comes amid Bahri’s strategy to modernize its fleet and expand its operating capacity over the long term. The company said the order aligns with efforts to localize shipbuilding and maritime supply chains, in line with the goals of Saudi Vision 2030. The new contract places part of the fleet expansion among orders being built locally, without implying that localization goals have already been achieved.
The plan to build the tankers follows a separate investment in existing vessels: Bahri announced in September 2025 that it had completed the purchase of 9 very large crude carriers from Capital Maritime & Trading for 1 billion dollars. Those ships were built in South Korea, while the current order concerns new vessels to be built in Saudi Arabia. The difference between the two deals reflects two ways to expand the fleet: acquiring ready-built tankers and adding new capacity through construction contracts with deliveries extending into the coming years. The company has set the financial impact of the current agreement for after the vessels are received and enter commercial service. The contract’s impact will therefore appear in the financial statements after the construction and delivery period, not when the agreement is announced. The contract runs until the last of the 3 tankers is delivered.
The deal announcement coincided with strong performance by Bahri in the second quarter of 2026, when it recorded net profit of 2.75 billion riyals, up 574% year on year, and revenue of 6.31 billion riyals, up 156%. The company attributed a substantial part of the performance to crude oil transport, which benefited from higher freight rates and increased vessel chartering to meet customer demand. It said first-half revenue growth was mainly linked to Bahri Oil’s operations and its response to customer demand by chartering more vessels. The chief executive said the fleet remained fully commercially deployed during the second quarter, enabling the company to continue serving customers. This operating performance places the tanker order in the context of oil transport activity that supported revenue during the period, while the new vessels will not enter service before delivery. The tankers are scheduled to arrive in batches during 2029 and 2030, after which their financial impact will begin once they are received and start commercial operations.