Bahri’s financial performance improved sharply in the third quarter of 2026 with profit up 891% year-on-year as its oil shipping business was buoyed by exceptionally strong very large crude carrier (VLCC) freight rates. The Saudi-based shipping group posted increased revenues despite a difficult operating environment during which four of its vessels were affected by maritime security incidents that left two crew members dead.
The company announced third-quarter revenue of SAR 14.83 billion ($3.95 billion), a 504% increase from the same period in 2025. Net profit was 5.09 billion Saudi riyals, benefiting from the strength of the tanker market and the group’s exposure to high freight rates.
VLCC market drives outstanding growth of Bahri Oil
The group’s quarterly results were led by Bahri Oil, which saw revenue rise 913% year on year. The company said the performance was due to substantially higher realized freight rates for VLCCs driven by regional shipping disruptions and increased maritime security risks that reduced the availability of vessels.
The group’s tanker business benefited from a market with demand for available tonnage and geopolitical uncertainty driving freight rates to exceptional levels. But the same conditions also pushed up operating expenses, especially for ships chartered from third parties.
Bahri’s VLCC fleet stands at 49, one less than a year ago. It chartered in vessels in much larger numbers to service customer demand. This strategy did enable the company to fulfilll more cargo requirements but the rise in chartering costs put pressure on the profitability.
Thus Bahri Oil’s EBITDA margin fell 17 percentage points to 37% in the quarter, reflecting the extra cost of securing capacity in a very expensive tanker market.
However, the business performed materially better than last year despite pressure on margins. Results also beat the conflict-affected second quarter of 2026, when Bahri Oil’s revenue jumped 182% in the third quarter and EBITDA grew 94%.
Bahri’s business expands into gas shipping
Bahri also diversified its operations by acquiring three medium second-hand gas carriers in the quarter, in addition to its strong performance in tankers. This deal represents a move into a new market segment for the company.”
One of the vessels was delivered in September 2026. The remaining two are slated to join the fleet in the fourth quarter of 2026 and first quarter of 2027.
The group is also expanding its orderbook in a variety of business lines. Current orders include three VLCCs for Bahri Oil, six geared Ultramax bulk carriers and two offshore support vessels (OSVs) and four roll-on/containership (ro-con) vessels for its other business units.
The acquisitions are expected to boost fleet capacity and also for growing the company’s business beyond its core crude oil shipping business.
Vessel attacks highlight risks of operating in Arabian Gulf
Bahri’s financial performance comes against a backdrop of serious threats to maritime security. The company confirmed at least four of its owned vessels have been successfully attacked since the conflict began in the Middle East.
Two of the affected vessels have returned to commercial service following repairs, while the other two are under repair.
Wedyan was among the ships damaged in an incident on 6 July 2026, according to the International Maritime Organization’s (IMO) list of confirmed attacks. A second ship, the Sidr, was damaged in an Aug. 31 attack that killed two Filipino seafarers.
Bahri has maintained a presence of vessels in the Arabian Gulf despite these incidents, including at a time when the safety of commercial shipping routes was of concern.
On 23 October, Bloomberg published an analysis that showed Bahri was ranked second in terms of the amount of oil transported through the Strait of Hormuz in September. It was well behind Sinokor in activity, which ranked first.
The case exemplifies the challenge of keeping vital oil transport going while protecting ships and crews in a more and more dangerous maritime environment.
Security issues in Hormuz remain a major challenge
The IMO has been warning shipping companies for some time against transiting the Strait of Hormuz due to the risk of attacks. Its latest warnings have also pointed to the threat of sea mines.
Iran’s Ports and Maritime Security-related authority, the PGSA, maintains a blacklist of 125 vessels on the Strait of Hormuz, nine of which are jointly held by Bahri and its subsidiary.
The security situation is still a major concern for operators whose businesses rely on uninterrupted flows of crude through the region. Attacks, navigational hazards and restrictions on vessel movements can impact on fleet availability, operating costs and the reliability of shipping schedules.
These risks have become an ever more prominent feature of doing business in a market that is churning out exceptional freight earnings for Bahri.
CEO pays tribute to crew killed in atacks
Bahri chief executive Eng. Ahmed Ali Al Subaey said the incidents had a human cost, and praised the response of the company’s seafarers and shore-based teams.
“Unfortunately, several of our vessels were subject to security incidents during the quarter, which tragically led to the loss of two crew members,” he said.
The CEO said he was deeply saddened by the deaths and extended condolences to the families and loved ones of the dead. He said the incidents highlighted the difficult conditions that seafarers work in and the company’s responsibility to protect its staff.
Al Subaey also praises the professionalism of the crews and the onshore staff in dealing with the incidents and assisting in the safe return to service of the affected vessels wherever possible.
Strong quarterly earnings cut net debt
The third quarter results also helped to bolster Bahri’s financial position. Net debt was SAR 8.16 billion at the end of September 2026, down from SAR 9.85 billion at the end of September 2025.
The cut came as the group benefited from significantly higher earnings in the period, improving its balance-sheet position despite elevated operating expenses and the financial impact of maritime security incidents.
But the outlook for the rest of the year still hinges heavily on geopolitical developments and their impact on shipping capacity and cargo flows.
The market is expected to remain extremely volatile in the last months of 2026 and freight rates will be strongly driven by developments in the Arabian Gulf and Red Sea, Bahri said.
Shipping capacity available is still tight in the market and demand for vessels could be supported by a recovery in crude oil exports, the company expects.
Bahri will have to sustain the financial upside from high tanker rates but also contain the cost of securing charters, grow its fleet and protect its seafarers amid ongoing security threats.
