Bahri reports falling profits amid aggressive fleet expansion

THE National Shipping Company of Saudi Arabia (Bahri) has seen profits tumble in the first half of 2025, as shipping rates in its key sectors came under pressure in the first six months of the year.

Bahri posted a net profit of SAR940m ($250m) in the first half of the year, down 21% on the corresponding period in 2024.

The results from the second quarter of the year were an improvement on the first, driven by stronger freight rates, but a more ordinary year for the clean and chemical segments is behind the fall in profits, Bahri said.

Nevertheless, the company’s fleet expansion strategy has continued, with 19 more vessels added to its growing fleet in the past 12 months.

Bahri now boasts a fleet of more than 103 vessels. Chief executive officer Ahmed Ali al-Subaey said last year’s “highly supportive market” saw Bahri “opportunistically expanded our owned fleet while maintaining balance sheet health”.

“In this year’s more dynamic market environment, we are leveraging our larger, younger fleet to achieve cost efficiencies to protect our margins. Bahri’s key strengths have always included resilience and agility, and these strengths continue to hold true.”

Last year’s “reliance” on leased vessels to capture strong freight rates has given way to higher margin, owned tonnage, alongside “disciplined chartering”.

Bahri said it remains “cautiously optimistic” about the second half of 2025. “Potential tailwinds” could be generated by geopolitical risk premiums to support the company’s oil division, while unwinding Opec+ production cuts could be supportive of VLCC demand.

But the dry bulk and chemical segments are expected to be challenging for the rest of the year amid “short-term volatility”.