| Bahri exercises option for five VLCCs at Hyundai |
| The National Shipping Company of Saudi Arabia (Bahri) has exercised options for five more very large crude carriers (VLCCs) from Hyundai Samho Heavy Industries (Hyundai Samho HI), more than a month after ordering five similar tankers from the same yard. This means Bahri will now have 10 300,000 dwt VLCCs under construction at Hyundai Samho HI. The five additional VLCCs that were booked on 30 June will be delivered during 2017–18. Bahri said, “The financial impact of these contracts will appear after the delivery of the vessels. The company will announce the financing details at a later time. “The signing of these contracts is for continuous renewal of the current fleet to meet the needs of the local and global markets.” Bahri did not disclose the price of the VLCCs, but according to brokers, the ships are said to be priced at USD100 million each, implying the total contract is worth USD1 billion. Hyundai Heavy Industries, which suffered a record loss of KRW2.8 trillion (USD2.5 billion) in 2014, appears to be rebounding with the recovery in tanker freight rates. The upswing, brought about by the drop in oil prices, has prompted shipowners to invest in VLCCs. |