Bahri Reports Q1 2026 Results, Posting Net Profit of SAR 2.15 Billion Driven by Strong Freight Rates and Fleet Expansion
The National Shipping Company of Saudi Arabia, the Kingdom’s leading shipping and logistics provider, has announced its financial results for the first quarter of 2026, reporting a strong performance marked by significant revenue growth and robust profitability. The Company recorded revenue of SAR 4.96 billion and net profit of SAR 2.15 billion, underscoring the strength of its diversified operations and resilient business model amid a volatile global shipping environment.
Strong Financial Performance Driven by Market Strength and Operational Scale
Bahri’s performance in the first quarter of 2026 reflects a continuation of favorable market dynamics in key shipping segments, particularly in crude oil transportation, alongside the benefits of its expanded fleet capacity and disciplined commercial strategy. The Company achieved a 129% year-on-year increase in revenue, supported by strong contributions across all business units, with Bahri Oil serving as the primary growth driver.
The substantial improvement in financial results was achieved despite ongoing geopolitical tensions and disruptions in global maritime routes, including instability in the Strait of Hormuz. Nevertheless, Bahri maintained uninterrupted operations throughout the quarter, with full commercial deployment of its fleet and consistent service delivery to customers across global trade lanes.
Chief Executive Officer Eng. Ahmed Ali Al Subaey highlighted the Company’s resilience and operational discipline in navigating challenging conditions while delivering strong financial outcomes.
“Bahri delivered an exceptionally strong first quarter, supported by higher freight rates, the benefit of our larger fleet, and increased charter-in activity to meet higher cargo requirements. Just as importantly, we remained focused on delivering safe, dependable service to our customers while navigating through a more complex and volatile environment,” he said.
Resilience Amid Regional and Global Market Volatility
The first quarter of 2026 was characterized by heightened uncertainty in global shipping markets, influenced by geopolitical developments and disruptions in key maritime corridors. Despite these challenges, Bahri demonstrated operational stability and continuity across its fleet.
The Company confirmed that all vessels remained safely and commercially deployed throughout the period, with no disruption to core service delivery. This operational resilience was supported by strong coordination between onboard crews and onshore teams, as well as established global partnerships that enabled Bahri to respond effectively to shifting trade patterns and evolving customer requirements.
Al Subaey emphasized the importance of these partnerships and operational frameworks in maintaining stability during periods of uncertainty.
“Our people and vessels remained safe, and our fleet continued to operate and serve our customers reliably, supported by the dedication of our crews and onshore teams. Our long-standing global partnerships also remained a source of strength, providing demand visibility and commercial stability while helping us respond proactively to evolving trade flows, shipping routes, and customer requirements,” he stated.
Strategic Positioning in a Complex Global Environment
Bahri’s management continues to closely monitor regional developments and their implications for the broader shipping and logistics landscape. The Company has reaffirmed its commitment to maintaining the safety of its personnel and assets while ensuring uninterrupted operations for its global customer base.
The CEO reiterated that Bahri remains focused on leveraging its scale and integrated logistics capabilities to support global trade flows, particularly in essential commodities such as crude oil, refined petroleum products, and dry bulk cargo.
He added that despite ongoing volatility, the Company remains confident in its ability to adapt to market conditions and sustain long-term value creation for stakeholders.
“Our priority remains the safety of our people and assets, and the continuity of our operations. Amid heightened uncertainty, we remain committed to leveraging our scale and integrated capabilities to support the flow of essential trade and enable economic activity in the Kingdom and across global markets, fulfilling Bahri’s role as a responsible participant in the global supply chain,” Al Subaey noted.
First Quarter 2026 Financial Overview
Bahri delivered a particularly strong financial performance in Q1 2026, reflecting favorable freight market conditions and operational expansion across its core segments.
Revenue Performance
The Company reported total revenue of SAR 4.96 billion for the quarter, representing a substantial 129% increase compared to the same period last year. This growth was primarily driven by the exceptional performance of Bahri Oil, which benefited from significantly higher freight rates in the crude transportation market.
Improving supply-demand fundamentals in global crude oil logistics contributed to stronger pricing conditions, while regional disruptions further tightened shipping capacity and supported rate increases. Bahri also benefited from its expanded fleet base and increased use of voyage charter-in arrangements, which allowed the Company to meet rising customer demand efficiently and flexibly.
In addition to Bahri Oil, all other business segments contributed positively to revenue growth, reflecting broad-based strength across the Company’s diversified portfolio.
EBITDA Growth and Margin Expansion
Group earnings before interest, tax, depreciation, and amortization (EBITDA) rose sharply by 137% year-on-year, reaching SAR 2.84 billion in Q1 2026. This performance reflects both higher revenue generation and improved operating leverage across key business units.
As a result, Bahri’s EBITDA margin improved to 57%, compared with 55% in the first quarter of 2025, demonstrating enhanced profitability despite ongoing market volatility.
Bahri Oil was the primary contributor to EBITDA growth, supported by elevated freight rates and strong market fundamentals in crude transportation. The segment benefited from improved utilization and pricing power, reinforcing its position as a core earnings driver for the Group.
Segment Contributions
Beyond Bahri Oil, several other business units also contributed meaningfully to EBITDA growth:
- Bahri Chemicals & Products delivered stronger results, supported by firmer freight rates in the clean petroleum products market and improved vessel utilization.
- Bahri Dry Bulk recorded growth driven by improved conditions in the dry bulk shipping sector, reflecting stronger demand for key commodities and more favorable charter rates.
- Bahri Marine Services also contributed positively, benefiting from a larger operating base compared to the same period last year, which supported increased service activity and revenue generation.
However, these gains were partially offset by lower contributions from associated company Petredec Group, as well as a decline in Bahri Integrated Logistics’ EBITDA. The logistics segment was impacted by a one-off reversal of prior-year cost accruals recorded in Q1 2025, which had temporarily inflated comparative performance.
Looking ahead, Bahri remains focused on maintaining operational resilience while capitalizing on favorable market conditions across its core shipping segments. The Company continues to invest in fleet optimization, operational efficiency, and strategic partnerships to strengthen its global positioning.
While geopolitical uncertainty and volatility in global shipping markets remain key considerations, Bahri’s diversified business model and integrated logistics capabilities are expected to provide stability and support continued performance.
The Company’s management remains confident in its long-term growth strategy, which is anchored in expanding fleet capacity, enhancing operational flexibility, and strengthening customer relationships across international markets.
Bahri’s first quarter 2026 results highlight the Company’s strong operational execution and ability to deliver exceptional financial performance in a challenging global environment. With revenue rising sharply to SAR 4.96 billion and net profit reaching SAR 2.15 billion, the Company has demonstrated both resilience and scalability across its diversified shipping and logistics portfolio.
Supported by robust freight market conditions, an expanded fleet, and disciplined operational management, Bahri continues to reinforce its position as a leading global maritime logistics provider and a key enabler of international trade.
Source link: https://www.bahri.sa/