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February 29, 2016

Bahri to buy one VLCC from Hyundai Heavy Industries for $75m

The National Shipping Company of Saudi Arabia (Bahri) has signed a memorandum of agreement (MoA) with South Korean shipbuilder Hyundai Heavy Industries (HHI) to purchase a very large crude carrier (VLCC), the Hanjin Ras Tanura, for about $75m.

The National Shipping Company of Saudi Arabia (Bahri) has signed a memorandum of agreement (MoA) with South Korean shipbuilder Hyundai Heavy Industries (HHI) to purchase a very large crude carrier (VLCC), the Hanjin Ras Tanura, for about $75m.

The vessel manufactured in 2011 at HHI is expected to be delivered to Bahri this year.

The company stated that the second quarter of this year will reflect the financial impact following the purchase of the vessel.

"The company stated that the second quarter of this year will reflect the financial impact following the purchase of the vessel."

Last December, Bahri had acquired one of the two ordered second hand VLCCs, the Blue Pearl.

The acquisition followed a negotiation of around $747m with local banks to be utilised towards vessel financing.

Earlier this month, Bahri signed an agreement with Scorpio Tankers to acquire five of its second-hand medium range (MR) tankers for about $166.5m.

The MR product tankers were built in 2014 at Hyundai Mipo Dockyard in South Korea. STI Chelsea, STI Lexington, STI Mythos, STI Olivia and STI Powai are set to be sold to Bahri’s National Chemical Carriers (NCC) subsidiary.

The sale of two vessels is expected to be completed this March, while the remaining three will be sold in the second quarter of this year.

The newly acquired tankers will add to Bahri’s existing fleet of 75 vessels out of which 33 are very large crude carriers (VLCCs) and 26 are chemical tankers.

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