Bahri Q3 profit jumps 891% to SAR5.09bn on tanker rates

Bahri Q3 profit jumped 891% to SAR5.09bn ($1.36bn) from SAR513.36m a year earlier, the National Shipping Company of Saudi Arabia said on Wednesday, as tanker freight rates climbed to records.

Revenue for the three months to 30 September rose 504% to SAR14.83bn ($3.95bn), the company said in a statement to the Saudi Exchange. Bahri Oil, the crude tanker arm, generated SAR13.33bn of that total, a 913% increase, and its gross profit grew by SAR4.4bn year on year.

Nine-month net profit reached SAR9.98bn ($2.66bn), up 587%, on revenue of SAR26.1bn ($6.96bn), a rise of 268%. Earnings per share climbed to SAR10.82 from SAR1.58 in the same period of 2025.

Why Bahri Q3 profit surged

The company attributed the jump to higher realised freight rates for very large crude carriers (VLCCs) and more charter-in activity. Regional conflict has disrupted Middle East shipping routes and reduced vessel availability, pushing tanker rates higher. Bahri’s chemicals, integrated logistics and dry bulk units also lifted revenue year on year.

Spot rates for VLCCs on the Middle East Gulf to China route hit a record $28.28 per barrel in September, up $12.90 from August, according to Kpler data cited by Arab News. Tanker owners have benefited from the squeeze on available ships.

The growth came at a cost to margins. Bahri’s EBITDA margin narrowed to 39% from 51% a year earlier, which the company put down to a larger share of lower-margin hired vessels, even as margins on its owned fleet improved. Quarterly net operating cash flow fell 81% to SAR204m.

Balance sheet strengthens as debt falls

Over the nine months, cash generated from operations rose 83% to SAR4.07bn ($1.09bn), and free cash flow swung to an inflow of SAR2.99bn ($797m) from an outflow of SAR1.31bn a year earlier. Net debt fell to SAR8.16bn ($2.18bn) from SAR9.85bn, taking net debt to EBITDA down to 0.59 times from 2.11 times.

Bahri also completed a SAR987m ($263m) refinancing with BNP Paribas and National Bank of Greece, which it described as its first unsecured international bank financing facility.

The year has not been without loss. Security incidents affected four Bahri-owned vessels during the first nine months, and two crew members died. Two of the ships have returned to commercial service, while two remain under repair.

“Bahri delivered another strong quarter, in an exceptionally complex operating environment,” said Eng. Ahmed Ali Al Subaey, chief executive officer of Bahri, in the results statement.

Fleet expansion and outlook

The owned fleet stood at 107 vessels at the end of September after Bahri added a fifth IMO2 medium-range tanker and disposed of an older chemical tanker. Two offshore support vessels were delivered during the quarter.

Bahri has also bought three second-hand medium gas carriers to enter LPG and ammonia transport. The first arrived in September, with the other two due in the fourth quarter of 2026 and the first quarter of 2027.

After the quarter closed, the company signed a SAR1.692bn ($451m) contract with International Maritime Industries for three newbuild VLCCs of 320,000 deadweight tonnes each, for delivery in 2029 and 2030. Outlook Middle East reported on the Bahri VLCC contract earlier this week.

Bahri warned that market conditions for the rest of 2026 are expected to remain highly volatile, with freight rates depending heavily on geopolitical developments in the Arabian Gulf and the Red Sea. Al Subaey said the company is entering the next phase of its growth “from a position of strength”, with priorities on fleet modernisation, diversification and selective expansion into gas and ammonia shipping.

For investors, the Bahri Q3 profit places the Saudi shipping company among the main beneficiaries of this year’s disruption to Gulf oil flows. It follows a busy week of third-quarter reporting from the region’s energy and services groups, including ADNOC Drilling’s nine-month results. Full details of the Bahri results are available on the company’s investor relations page.