Bahri subsidiary signs $120 million contract with South Korean

ship builder for 4 bulk carriers

28/08/2017 05:43 AST

The National Shipping Company of Saudi Arabia (Bahri) on Sunday said ts subsidiary Bahri Dry Bulk Company has signed a $120 million contract (SR450 million) to buy four bulk carriers from South Korean ship builder Hyundai Heavy Industries.

Bahri Dry Bulk Company, which is 60 percent owned by Tadawul-listed Bahri, will take delivery of the ships by the first half of 2020, a disclosure to the stock exchange noted. The company, which is expanding the fleet to meet the needs of the local and global markets, said financial impact of the contract to acquire the carriers will appear after the delivery of the vessels.

"The new vessels, with a capacity of 80,000 metric tons per carrier, are designed to the latest international technical specifications and are fitted with environmentally-friendly specifications and enjoy high efficiency in fuel consumption," Bahri said.

Bahri last month reported a steep 68% decline in second-quarter profit to SR153.9 million from SR487.7 million last year, and pointed to lower spot market rates particularly on oil transport during the period.

The company also blamed the increase in bunker costs during the quarter, which resulted into higher bunker prices when compared with the similar period a year ago.

Revenues were also lower at SR1.3 billion in the second quarter versus the year-ago SR1.8 billion level.

Bahri earlier announced it will invest SR522.38 million and hold a 19.9 percent stake in a joint venture with Saudi Aramco, Lamprell, and Hyundai Heavy Industries that will build and operate a maritime yard at Ras Al Khair Industrial City, northeast of the Kingdom.

Arab News