Saudi Arabia’s flagship line Bahri has snapped up nine very large crude carriers from Evangelos Marinakis-controlled Capital Maritime & Trading. The company said in a Tadawul filing it would be paying about $1bn in total for the scrubber-fitted ships delivering by the end of the first quarter of 2025. The deal will be financed by bank borrowings and cash on hand.
Bahri has been actively renewing its VLCC fleet since late last year by taking a number of modern ships on the secondhand market, including four VLCCs from Korea Line Corporation in May. The latest move is expected to modernise the company’s oil shipping fleet, which currently stands at 40 VLCCs, and enable phasing out older vessels. The majority of the nine unnamed vessels were built in South Korea and average 5.9 years and about 311,500 dwt.
“The transaction will significantly advance Bahri’s fleet modernization plans, reinforcing its position among leading VLCC owners globally,” the company said, adding that it would also bolster Bahri’s overall fleet competitiveness and lead to higher earnings and reduced operating expenses.
This acquisition reflects Bahri's commitment to modernizing its fleet and solidifying its position as a leader in the VLCC market. The purchase of these modern, eco-scrubber-equipped tankers will enhance the company's operational efficiency, reduce its environmental footprint, and ultimately contribute to increased profitability.
Modernization Efforts
The addition of these nine VLCCs marks a significant step forward in Bahri's ongoing fleet modernization strategy. The company has been actively acquiring modern vessels in recent months, aiming to replace older tankers and improve its overall competitiveness. This move aligns with the company's long-term objective of reducing operating costs and enhancing its environmental performance.
Global VLCC Market
The global VLCC market is characterized by a growing demand for crude oil transportation, driven by rising global energy consumption. Bahri's acquisition of these modern VLCCs positions the company to capitalize on this growing demand and further solidify its position as a leading player in the market.
Benefits for Bahri
The acquisition of these nine VLCCs is expected to bring several benefits to Bahri:
- Fleet Modernization: The new tankers will replace older vessels, resulting in a more modern and efficient fleet.
- Operational Efficiency: The modern VLCCs are equipped with advanced technologies that will improve operational efficiency and reduce operating costs.
- Environmental Performance: The scrubber-fitted vessels will reduce emissions and enhance Bahri's environmental performance.
- Revenue Growth: The acquisition is expected to contribute to revenue growth for Bahri, as the company will be able to transport more crude oil efficiently.
Strategic Significance for Saudi Arabia
This deal is strategically significant for Saudi Arabia, the world's largest oil exporter, as it continues to secure and expand its logistical capabilities.
Future Outlook
Bahri's commitment to fleet modernization and its focus on operational efficiency and environmental performance position the company for continued growth in the global VLCC market. The acquisition of these nine VLCCs is a testament to the company's strategic vision and its commitment to becoming a leading player in the global oil transportation sector.
The Future of Oil Transportation
Bahri's commitment to fleet modernization highlights the ongoing transformation in the oil transportation industry. The industry is shifting towards more efficient and sustainable practices, as companies seek to reduce their environmental impact and enhance their operational performance. The acquisition of these new VLCCs is a clear indication of Bahri's commitment to staying ahead of the curve and leading the way in this transformation.
Conclusion: A Major Step Forward
Bahri's acquisition of nine VLCCs from Capital Maritime & Trading is a major step forward in the company's fleet modernization strategy. This move will enhance the company's competitiveness and strengthen its position in the global oil transportation market. The acquisition also reflects Bahri's commitment to sustainable practices, as the new vessels are equipped with eco-friendly technologies that reduce emissions.
As the world continues to transition to a more sustainable energy future, Bahri's commitment to fleet modernization and its focus on operational efficiency and environmental performance position the company for continued growth and success.
