RIYADH: Saudi Arabia’s National Shipping Co., known as Bahri, reported a 303 percent jump in profit in the first quarter of 2026 as higher tanker rates and disruption to shipping routes in the Arabian Gulf boosted earnings.
Net profit rose to SR2.15 billion ($573.25 million) in the three months ending March 31, from SR533 million a year earlier, the company said in an earnings release. Revenue climbed 129 percent to SR4.96 billion, while earnings before interest, taxes, depreciation and amortization increased 137 percent to SR2.84 billion.
The sharp earnings growth was driven primarily by Bahri Oil, the company’s crude transportation unit, which benefited from soaring freight rates, an expanded fleet, and increased chartering activity following heightened geopolitical conflicts in the region.
Ahmed Ali Al-Subaey, CEO of Bahri, said: “Bahri delivered an exceptionally strong first quarter, supported by higher freight rates, the benefit of our larger fleet, and increased charter-in activity to meet higher cargo requirements.”
He added: “Despite disruption to maritime traffic through the Strait of Hormuz and heightened regional uncertainty, Bahri remained resilient throughout the quarter, with all our vessels commercially deployed. Our people and vessels remain safe.”
Bahri Oil posted revenue of SR3.74 billion in the quarter, up 241 percent from a year earlier, while EBITDA surged 253 percent to SR2.12 billion. The division benefited from expanding its Very Large Crude Carrier fleet to 50 vessels, up from 44 a year earlier, alongside a significant increase in voyage charter-in activity.
The company noted that following the escalation of conflict in late February, tanker transit through the Strait of Hormuz had largely ceased, shifting Saudi crude export flows toward the Red Sea corridor. Quoted freight rates rose sharply, and Bahri Oil navigated the challenging environment by fully deploying its owned fleet.
Bahri Chemicals & Products also delivered a strong quarter, with revenue up 14 percent year on year to SR796 million and EBITDA jumping 42 percent to SR506 million, while Bahri Dry Bulk saw EBITDA rise 40 percent despite seasonal market softness.
Bahri generated SR1.34 billion in net operating cash flow during the first quarter of 2026, up 174 percent year on year. Free cash flow turned decisively positive, reaching SR1.28 billion, compared with an outflow of SR1.20 billion during the same period last year.
The company’s net debt declined to SR7.81 billion at the end of March from SR9 billion a year earlier, reducing its net-debt-to-EBITDA ratio to 1.14 times from 1.85 times.
Bahri’s owned fleet remained stable at 104 vessels during the quarter, with no additions or divestments. The company maintains a zero fatality and zero oil spill record, while its Lost Time Injury Frequency Rate improved to 0.17 injuries per million work hours.
