Bahri Buying Second-Hand VLCC Duo

zoom The National Shipping Company of Saudi Arabia (Bahri) announced today that its Board has approved the purchase of two second hand Very Large Crude Carriers (VLCC), Blue Topaz and Blue Pearl. The contract is worth a total of USD 157 million. The VLCC duo was built in 2010 at Daewoo Shipbuilding & Marine Engineering and is being bought from DSMEs shipowning arm DK Maritime. Bahri informed that the two  VLCCs will be delivered to the company between the 15th of November 2015 and 31st January 2016. The financial implication of these 2 VLCCs is expected during the 1st quarter 2016, the company added. Earlier last week, Reuters reported that Bahri was in talks with local banks to raise around 2.8 billion riyals (USD 747 million) via a long-term loan to be used towards vessel financing. Unnamed sources were quoted as saying that the funding would be used to buy VLCCs from South Korean shipbuilder Hyundai Heavy Industries. Bahri saw its net income rise to SAR 510.3 million (USD 136 million) in the third quarter of 2015 from SAR 84.8 million reported in the same period last year. The company’s gross profit reached SAR 611.2 million, a major increase when compared to the corresponding period from last year when it amounted to SAR 118 million. Bahri attributed the increase in the net income to a growth in operating revenues as a result of the expansion of its VLCC fleet from 26 to 31 VLCCs, 5 product tankers and 1 floating storage vessel, following the completion of the merger process with Vela Marine International Ltd.