Print
PDF
In November 2012, the National Shipping Company of Saudi Arabia signed an agreement to merge its fleet with that of Vela, a division of Saudi Aramco. The process has reached a significant stage with the transfer of the VLCC Matar Star to Bahri’s ownership on 21st July 2014 with a corresponding change in name to Nisalah.
This marks an important milestone in the transaction, as it signifies the effective start date of the long-term contract of affreightment, whereby Bahri becomes the exclusive carrier of all Aramco VLCC-sized crude oil cargoes sold on a delivered basis. The remaining Vela vessels will be transferred to Bahri on a staggered basis , according to a schedule that has been agreed upon with Vela and is expected to be completed before the end of 2014. Bahri says significant financial benefits will start to materialise during the third quarter of 2014.
Bahri has recently announced a net profit of SR 325.57 (US$ 86.8) million for the first half of 2014, 7.6% higher than in the same period of 2013. Operational profits of SR 286.03 (US$ 76.26) million were over 23% higher. The inverse in net income reflects an improvement in the oil transportation sector, good results from the new Bahri Dry Bulk Company and to an increase in profits from Bahri’s 30.3% shareholding in Petredec.
