Saudi Shipping Firm Bahri Reports Triple-Digit Profit Increase Amid Regional Disruptions
Higher tanker rates and disruptions in the Arabian Gulf significantly boost Bahri's Q1 earnings.
Riyadh, Saudi Arabia – Saudi Arabia’s National Shipping Co., or Bahri, witnessed a considerable surge of 303 percent in its net profit during the first quarter of 2026.
This rise is attributed to an increase in tanker rates and disruptions affecting shipping routes within the Arabian Gulf.
The company reported a net profit of SR2.15 billion (approximately $573.25 million) for the three months ending March 31, in comparison to SR533 million recorded during the same period last year.
Revenue saw a notable increase of 129 percent to reach SR4.96 billion, and earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 137 percent to SR2.84 billion.The primary driver behind Bahri’s significant profit growth is its crude transportation unit, Bahri Oil.
This division benefited from escalating freight rates, the expansion of its fleet, and increased chartering activities in response to heightened geopolitical tensions within the region.Ahmed Ali Al-Subaey, CEO of Bahri, commented on the results, stating that the company achieved an exceptionally strong first quarter bolstered by rising freight rates, a larger fleet size, and increased demand for chartering services.
Despite disruptions caused by conflict in the Strait of Hormuz and regional uncertainty, Bahri managed to maintain operational resilience with all its vessels deployed commercially.
Al-Subaey further emphasized that both personnel and vessels remained safe throughout the period.Bahri Oil posted remarkable financial figures for the quarter, including revenue of SR3.74 billion, representing a 241 percent increase from the previous year, alongside an EBITDA surge of 253 percent to SR2.12 billion.
This performance can be attributed to the company’s expansion of its Very Large Crude Carrier fleet to 50 vessels, up from 44 in the previous year, and increased voyage charter-in activity.The escalation of conflict in late February led to a near halt of tanker transit through the Strait of Hormuz, prompting Saudi crude export flows towards the Red Sea corridor.
As a result, quoted freight rates saw significant increases, and Bahri Oil skillfully navigated this challenging environment by fully utilizing its owned fleet.In addition to Bahri Oil's success, Bahri Chemicals & Products delivered a strong quarter with revenue growth of 14 percent year-over-year to reach SR796 million and EBITDA gains of 42 percent to SR506 million.
The company also reported that Bahri Dry Bulk saw a 40 percent increase in EBITDA despite experiencing seasonal market softness.Bahri generated substantial net operating cash flow during the first quarter, amounting to SR1.34 billion – an impressive 174 percent increase from the same period last year.
Furthermore, free cash flow turned decisively positive, reaching SR1.28 billion as compared to an outflow of SR1.20 billion in the previous year.The company's net debt declined to SR7.81 billion by the end of March, down from SR9 billion a year earlier, thus reducing its net-debt-to-EBITDA ratio to 1.14 times from 1.85 times.
Bahri’s fleet remained stable at 104 vessels during the quarter without any additions or divestments.
The firm also maintains an exemplary safety record, boasting zero fatalities and zero oil spills while improving its Lost Time Injury Frequency Rate to 0.17 injuries per million work hours.
This rise is attributed to an increase in tanker rates and disruptions affecting shipping routes within the Arabian Gulf.
The company reported a net profit of SR2.15 billion (approximately $573.25 million) for the three months ending March 31, in comparison to SR533 million recorded during the same period last year.
Revenue saw a notable increase of 129 percent to reach SR4.96 billion, and earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 137 percent to SR2.84 billion.The primary driver behind Bahri’s significant profit growth is its crude transportation unit, Bahri Oil.
This division benefited from escalating freight rates, the expansion of its fleet, and increased chartering activities in response to heightened geopolitical tensions within the region.Ahmed Ali Al-Subaey, CEO of Bahri, commented on the results, stating that the company achieved an exceptionally strong first quarter bolstered by rising freight rates, a larger fleet size, and increased demand for chartering services.
Despite disruptions caused by conflict in the Strait of Hormuz and regional uncertainty, Bahri managed to maintain operational resilience with all its vessels deployed commercially.
Al-Subaey further emphasized that both personnel and vessels remained safe throughout the period.Bahri Oil posted remarkable financial figures for the quarter, including revenue of SR3.74 billion, representing a 241 percent increase from the previous year, alongside an EBITDA surge of 253 percent to SR2.12 billion.
This performance can be attributed to the company’s expansion of its Very Large Crude Carrier fleet to 50 vessels, up from 44 in the previous year, and increased voyage charter-in activity.The escalation of conflict in late February led to a near halt of tanker transit through the Strait of Hormuz, prompting Saudi crude export flows towards the Red Sea corridor.
As a result, quoted freight rates saw significant increases, and Bahri Oil skillfully navigated this challenging environment by fully utilizing its owned fleet.In addition to Bahri Oil's success, Bahri Chemicals & Products delivered a strong quarter with revenue growth of 14 percent year-over-year to reach SR796 million and EBITDA gains of 42 percent to SR506 million.
The company also reported that Bahri Dry Bulk saw a 40 percent increase in EBITDA despite experiencing seasonal market softness.Bahri generated substantial net operating cash flow during the first quarter, amounting to SR1.34 billion – an impressive 174 percent increase from the same period last year.
Furthermore, free cash flow turned decisively positive, reaching SR1.28 billion as compared to an outflow of SR1.20 billion in the previous year.The company's net debt declined to SR7.81 billion by the end of March, down from SR9 billion a year earlier, thus reducing its net-debt-to-EBITDA ratio to 1.14 times from 1.85 times.
Bahri’s fleet remained stable at 104 vessels during the quarter without any additions or divestments.
The firm also maintains an exemplary safety record, boasting zero fatalities and zero oil spills while improving its Lost Time Injury Frequency Rate to 0.17 injuries per million work hours.
