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20 August 2024
As part of the Company's ambitious fleet modernization plan, the National Shipping Company of Saudi Arabia (Bahri) announces that it has finalized a purchase agreement on 19 August 2024 with Capital Maritime and Trading Corporation to acquire nine Very Large Crude Carriers (VLCCs) for an approximate amount of SAR 3.75 billion (USD 1 billion). The transaction will significantly advance Bahri's fleet modernization plans, reinforcing its position among leading VLCC owners globally. The main purpose of this acquisition is to enable Bahri streamlining the process of phasing out older vessels in the fleet going forward. Moreover, the transaction is poised to improve Bahri's overall fleet competitiveness that will lead to enhancing the company's revenues and profitability, as Bahri will benefit from the higher earnings from these modern eco-scrubber ships, as well as the reduced operating expenses driven by these cost-efficient VLCCs. Transaction Details The National Shipping Company of Saudi Arabia (Bahri) will acquire nine VLCCs from Capital Maritime and Trading Corporation for a purchase price of approximately SAR 3.75 billion (USD 1 billion). Transaction Amount Approximately SAR 3.75 billion (USD 1 billion). Transaction Conditions Capital Maritime and Trading Corporation agreed to deliver the VLCCs to Bahri in multiple batches before end of Q1-2025. As for the payment schedule, it was agreed that Bahri will pay 10% of the total transaction amount upon signing the purchase agreement, while the remaining 90% to be paid upon delivery of the vessels. Parties of the Transaction Buyer: The National Shipping Company of Saudi Arabia (Bahri). Seller: Capital Maritime and Trading Corporation. Transaction Financing Method The transaction will be financed by a mixture of banking facilities and internally generated funds. Date of Entering Into The Transaction 2024-08-19 Corresponding to 1446-02-15 Description of Activity of The Asset Subject of The Transaction The VLCCs will be utilized by Bahri Oil Transport business unit to deliver Crude Oil Cargoes for its customers. Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction Not applicable. Transaction reasons The transaction will modernize Bahri's fleet, particularly its Oil Transport business unit which currently operates a fleet of 40 VLCCs, and enable it to streamline the process of phasing out older vessels in its fleet going forward. Expected Impact of the Transaction on the Company and Its Operations The transaction will improve the fleet competitiveness of Bahri Oil Transport business unit as the modern, eco-scrubber, and cost-efficient VLCCs will boost both its revenues and profitability. Related Parties None. Additional Information The majority of the nine VLCCs are built in South Korea, with an average age of 5.9 years. These are scrubber-fitted VLCCs and equipped with high energy efficiency and low emission features to reduce environmental impact. The average deadweight tonnage (DWT) of each VLCC is around 311,500. Bahri (formerly known as NSCSA), press release 
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