Saudi Arabia's national shipping company Bahri has reported a near-tenfold jump in third-quarter profit, as surging oil tanker rates turned one of the world's most dangerous shipping routes into an exceptionally profitable one. Net profit rose to 5.09 billion riyals — about $1.36 billion on the precise figure, rounded to $1.4 billion in Bloomberg's report — from 513 million riyals a year earlier, an increase of 891%. Revenue rose 504% to 14.83 billion riyals, or about $3.95 billion, in a stock-exchange statement published on Wednesday 28 October.

Tanker rates drove the result

The oil shipping division did most of the work. Bahri Oil recorded revenue 913% higher than a year earlier, helped by higher realised rates for very large crude carriers and more chartered-in tonnage. Bloomberg reported that VLCC rates have risen dramatically this year as the war that began with US and Israeli strikes on Iran at the end of February disrupted Gulf shipping. Bahri has been central to helping state oil producer Aramco move crude out of the Gulf, including by ship-to-ship transfer outside the Strait of Hormuz. Gulf oil exports have recovered towards pre-war levels, but only through convoys and military protection.

Profit alongside personal loss

The financial result came with a human cost that the company did not hide. Four Bahri-owned vessels were targeted in attacks during the first nine months of the year, and two crew members were killed. Two vessels have returned to service after repairs, while two remain under repair. Chief executive Ahmed Ali Al Subaey described an “exceptionally complex operating environment”. For the first nine months, profit reached 9.98 billion riyals, up 587%. Bahri has ordered three new VLCCs for delivery in 2029–2030 and is moving into gas and ammonia shipping.

Sources: Bloomberg via gCaptain, Seatrade Maritime.