Higher VLCC freight rates and increased charter-in activity drove earnings growth at the Saudi shipping company, which reported 107 owned operating vessels and a newbuilding programme covering 13 ships.

Saudi Arabia’s national shipping company Bahri reported third-quarter net profit of $1.36 billion, up 891% year on year, as higher crude tanker freight rates and expanded charter-in activity lifted revenue sharply.

Revenue reached $3.95 billion in the three months ended September 2026, an increase of 504% from a year earlier, according to results released on October 28. Net profit attributable to shareholders rose from approximately $137 million in the corresponding period of 2025.

Bahri Oil accounted for most of the growth. The company said regional shipping disruptions and heightened maritime security risks had constrained vessel availability, driving significantly higher realised freight rates for very large crude carriers, or VLCCs. It also increased the use of chartered vessels to meet customer demand.

Oil transportation drives earnings growth

Bahri Oil’s quarterly revenue increased 913% year on year to $3.56 billion, while earnings before interest, tax, depreciation and amortisation rose 598% to $1.31 billion.

The division owned 49 VLCCs at the end of September, unchanged from the end of June and down from 50 a year earlier. Alongside this owned fleet, Bahri substantially expanded charter-in activity.

Bahri Oil is the exclusive transporter of Saudi Aramco’s VLCC crude cargoes sold on a delivered basis. Aramco holds a 20% equity stake in Bahri.

The oil division’s results also strengthened against the preceding quarter, with revenue rising 182% and EBITDA increasing 94%. At group level, revenue rose 135% quarter on quarter, while net profit increased 85%.

Chartered vessels change the earnings mix

Despite the increase in earnings, Bahri Oil’s EBITDA margin fell to 37% from 54% a year earlier.

The company attributed the decline to a greater proportion of revenue from lower-margin charter-in business. EBITDA margins on its owned fleet improved significantly during the same period.

The change in business mix also affected group results. Total EBITDA increased 363% to $1.56 billion, but the group EBITDA margin declined by 12 percentage points to 39%.

The group’s net profit margin, however, rose to 34% from 21%. Bahri also reported a higher earnings contribution from its associate Petredec Group.

An owned operating fleet of 107 vessels

Bahri’s operating-fleet table showed 107 owned vessels and two vessels on long-term lease at September 30, 2026. Its activities span crude oil transportation, chemicals and petroleum products, integrated logistics and dry bulk shipping.

The two vessels on long-term lease were operated by Bahri Chemicals & Products. The fleet table excludes three floating desalination barges and two offshore support vessels, which the company reports separately. Additional charter-in activity to meet customer demand is also reported separately.

Bahri’s owned operating fleet increased from 104 vessels a year earlier. The chemical and product tanker fleet grew from 33 to 37 vessels, while the VLCC fleet declined from 50 to 49. The owned logistics and dry bulk fleets were unchanged.

The chemical tanker expansion followed the acquisition of five IMO Type 2 MR tankers. The fifth vessel joined the division’s owned fleet in August, when Bahri also sold an older chemical tanker.

In integrated logistics, the company’s six RoCon vessels combine roll-on/roll-off capability with container carriage. During the third quarter, Bahri repositioned all six onto a North American service connecting the United States, Europe and Saudi Arabia via the Suez Canal.

Its dry bulk fleet comprises nine Kamsarmax and four Ultramax vessels. Five of the Kamsarmax vessels operate under long-term time-charter contracts with Saudi agricultural group ARASCO, while the Ultramax vessels support regional and secondary-port trades requiring onboard cargo-handling equipment.

Thirteen newbuildings scheduled for 2028–2030

Including three VLCCs contracted after the end of September, Bahri’s disclosed outstanding newbuilding programme comprises 13 vessels: three VLCCs, six geared Ultramax bulk carriers and four RoCon vessels.

The contracts have a combined disclosed value of approximately $1.06 billion, with deliveries scheduled between 2028 and 2030.

The three VLCCs will be built by International Maritime Industries in Saudi Arabia. Each vessel will have a capacity of 320,000 dwt, with deliveries scheduled for 2029–2030.

The four China-built RoCon vessels represent two separate contracts. The latest pair was ordered during the third quarter of 2026 for delivery in 2030.

Two offshore support vessels were delivered during the third quarter and are excluded from the outstanding newbuilding total.

Expansion into LPG and ammonia transportation

Separately from its newbuilding programme, Bahri acquired three second-hand medium gas carriers during the third quarter, entering LPG and ammonia transportation to serve growing export demand from Saudi customers.

The first vessel was delivered in September. The remaining two are scheduled for delivery in the fourth quarter of 2026 and the first quarter of 2027.

The company reports the gas carrier acquisition separately from its September operating-fleet table. The purchases expand Bahri Oil’s activities beyond crude transportation, while the group also retains a non-controlling equity interest in LPG shipping and trading company Petredec Group.

Four vessels affected by security incidents

Bahri continued shipping operations amid disruption to routes through the Arabian Gulf and Red Sea.

The company said four owned vessels were affected by conflict-related incidents during the first nine months of 2026, resulting in the deaths of two seafarers. Two vessels had completed repairs and returned to commercial service, while the other two remained under repair.

Chief executive Ahmed Ali Al Subaey expressed condolences to the families of the deceased and acknowledged the work of crews and shore teams responding to the incidents.

Bahri reported no oil spills during the third quarter.

Nine-month profit reaches $2.66 billion

For the first nine months of 2026, group revenue reached $6.96 billion and net profit totalled $2.66 billion, increases of 268% and 587%, respectively.

Operating cash flow for the nine-month period rose 83% to $1.09 billion, although third-quarter operating cash flow fell 81% to $54.4 million.

Net debt stood at $2.18 billion at the end of September, with the net debt-to-EBITDA ratio declining to 0.59 times from 2.11 times a year earlier.

Bahri expects market conditions to remain highly volatile through the rest of 2026, with freight rates closely tied to geopolitical developments in the Arabian Gulf and Red Sea. The company expects recovering crude exports to support vessel demand while available shipping capacity remains constrained.

All financial amounts are expressed in US dollars, converted from Saudi riyals at SAR3.75 per dollar. Figures are rounded. The outstanding newbuilding total includes the October VLCC contract and excludes delivered vessels and second-hand acquisitions.