Bahri said to be in talks with banks to secure SAR 2.8 bln loan: report

The National Shipping Company of Saudi Arabia (Bahri) is in talks with banks to raise around SAR 2.8 billion in long term loan to finance the purchase of oil tankers, Reuters reported.

Bahri has invited a number of local and international banks to discuss the eventual purchase of oil tankers from South Korea’s Hyundai Heavy Industries, the report said citing unnamed sources.

Early this year, Bahri signed two separate deals with Hyundai to build 10 tankers with a capacity of 300,000 tons to replace the existing fleet. The expected date of delivery is 2017 and 2018.

Bahri became the sole oil shipper for Saudi Aramco after it bought Vela Marine International Ltd. from the oil giant in a deal completed last year.

Bahri reported a net profit of SAR 510.3 million in Q3 this year, a 501.41 percent surge from SAR 84.85 million in the same quarter last year.

The shipper attributed the profit jump to higher operating revenues as a result of the increase in VLCC fleet after the merger.