BAHRI
National Shipping Company of Saudi Arabia
As of: May 28, 2026
Company Profile
The National Shipping Company of Saudi Arabia (Bahri) is a Saudi Joint Stock Company primarily engaged in purchasing, selling, and operating vessels for the coordination of transport and storage on board vessels, transportation of cargo, cargo clearance, agencies for maritime shipping companies, and all marine transport activities. The Group operates through four distinct segments: crude oil transportation, chemicals transportation, logistics, and dry bulk transportation. It is also engaged in water desalination activities, property ownership, and equity investments. The Group's majority shareholders, PIF and Aramco, are fully or majorly owned by the Government of Saudi Arabia and exercise significant influence over the Group.
The Story
Bahri serves as the maritime shipping champion of Saudi Arabia, driving robust top-line expansion and heavy capital reinvestment, though its returns on capital remain closely tied to cyclical global shipping rates and high leverage.
Source: Q1 2026 (2026-05-07)
Performance & Distributions
Market Pricing Multiples
Growth Story
Bahri's growth story is a relentless voyage of fleet expansion, characterized by substantial capital deployment to scale its maritime capacity. Revenue has climbed steadily from SAR 8.78 billion in FY 2023 to SAR 9.48 billion in FY 2024, and further to SAR 10.35 billion in FY 2025, culminating in a TTM revenue of SAR 13.14 billion. This top-line momentum is fueled by aggressive reinvestment, with a five-year average reinvestment rate of 102.18%. This massive capital commitment is directed toward expanding its fleet of 104 owned vessels and funding projects under construction, which stood at SAR 903.21 million as of March 31, 2026. Despite this heavy capital outlay, the company's long-term sustainable growth rate is estimated at 7.87%, reflecting the balance between its high reinvestment rate and its historical return on capital.
Profitability Dynamics
Navigating the narrow straits of capital efficiency, Bahri demonstrates strong operating profitability but faces challenges in consistently outperforming its cost of capital. The company achieved an impressive TTM operating margin of 32.53% and a profit margin of 32.14%, translating to an EBIT of SAR 4.28 billion and a NOPAT of SAR 4.19 billion. This profitability is heavily supported by its crude oil transportation segment, which generated SAR 3.74 billion in revenue for the three months ended March 31, 2026, alongside contributions from its chemical joint venture, Petredec. However, Bahri's five-year average ROIC of 7.70% falls slightly short of its WACC of 8.77%, resulting in a negative ROIC-to-WACC gap of -1.07%. This indicates that while the company generates substantial absolute cash flows and profits, its massive asset base—including SAR 20.28 billion in property and equipment—requires high capital charges that historically dilute economic value creation.
Risk & Capital Structure
Risk Factors
Anchoring against volatile macroeconomic and geopolitical winds, Bahri's risk profile is defined by its capital-intensive structure and high leverage. The company carries a substantial debt load, with latest total debt reaching SAR 11.80 billion, comprising SAR 3.90 billion in Sukuk and SAR 7.65 billion in Murabaha loans. This leverage is reflected in a relevered beta of 1.239, indicating higher systemic volatility than the broader market. Furthermore, Bahri's operations are highly exposed to customer concentration, with Saudi Aramco and its subsidiaries accounting for SAR 3.37 billion in revenue for the three months ended March 31, 2026, and representing SAR 2.73 billion of the company's trade receivables. While geopolitical developments have recently had a positive impact on freight rates and financial performance, the inherent cyclicality of global shipping rates, fluctuating bunker fuel costs, and the variable interest rates on its Sukuk and Murabaha loans present ongoing operational and financial risks.
Governance Disclosures
We track 16 key governance and oversight matters for this company in our database.
Remuneration of Board and Key Management
Total compensation for key management personnel reached SAR 50.99 million in 2025. Remuneration for the Board of Directors specifically increased to SAR 14.4 million from SAR 9.5 million in 2024.
Vessel Mortgages as Loan Security
The Group's Murabaha long-term loans, totaling SAR 7,811,139,000, are secured by promissory notes and mortgages against the Group's vessels.
Research Report
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