Bahri Stock: Comprehensive Analysis of Financial and Operational Performance in

The National Shipping Company of Saudi Arabia (Bahri) was established in 1978 as a joint venture between the Saudi government and several private entities, aimed at supporting the Kingdom's oil exports and developing the maritime transport sector. Since then, Bahri has evolved to become one of the largest shipping companies in the region and the world. The company provides services in four main areas: crude oil and petroleum product transport, chemical and gas transport, general cargo and bulk shipping, and passenger and general cargo transport services. Bahri is closely linked with major companies such as Saudi Aramco and plays a vital role in the national energy and logistics ecosystem. The listing of Bahri stock on the Saudi financial market (Tadawul) under symbol 4030 has enhanced its position, making it one of the valuable large companies in the main market index (TASI). Bahri contributes to achieving the goals of Vision 2030 by developing transport networks and supporting mega infrastructure projects such as NEOM and Red Sea projects, as well as enhancing non-oil exports.

Bahri stock is listed on the Saudi financial market under trading symbol 4030 and is considered one of the highly liquid stocks with notable activity within the transport and logistics sector. The stock has experienced price fluctuations over recent years, with its price hovering around the mid-forties Saudi Riyals by the end of 2023, and this range continued during the first half of 2025 with slight changes related to sector performance and the global economy. The stock price increased during certain periods due to improved shipping rates and increased demand for oil and gas transport, as well as benefiting from expansion announcements and signing new contracts with major companies. The stock represents a monitored option for investors seeking relative stability and periodic distributions, reflecting market confidence in the company's financial strength and its ability to withstand cyclical sector fluctuations.

Recent financial indicators suggest relative stability in Bahri's performance compared to the global maritime transport sector. The stock price in May 2025 was approximately 45.60 Riyals, while the price-to-earnings (P/E) ratio ranged between 10–15 times, reflecting a moderate valuation for major sector companies. The company's market capitalization ranged between 35 and 40 billion Riyals, placing it among the top 15 companies in the TASI index. As for dividends, the company has maintained an annual distribution policy estimated at around 2 Riyals per share, providing an annual dividend yield of approximately 4–5%. In terms of revenue, the company recorded an average growth of about 10–15% in 2024 compared to the previous year, with a net profit increase of 15–20% in some periods. Bahri also maintained high liquidity and a moderate debt ratio (net debt to equity less than 0.5), reflecting the strength of its financial base and the company's ability to invest in future expansions.

Bahri relies on four main sources to achieve its revenues: crude oil and petroleum product transport, chemical and gas transport, general cargo and bulk shipping, and passenger and general cargo transport services. Contracts for oil transport with Saudi Aramco represent the largest source of revenue, as the company enters long-term contracts to transport crude oil to Asian and European markets. Recently, Bahri has expanded into transporting liquefied petroleum gas (LPG) and chemicals, especially with the increasing demand from Asian markets. The general shipping sector contributes to diversifying income sources and allows the company to benefit from the growth in international trade. Bahri also manages specialized subsidiaries, such as the Marine Oil Transport Lines Company, enhancing its operational capabilities and reducing the risks of relying on a single income source.

The maritime transport sector in Saudi Arabia is a strategic sector witnessing rapid development supported by Vision 2030. The sector's size is expected to grow with the implementation of massive projects such as NEOM, expansion of seaports, and enhancement of coastal infrastructure. The Kingdom's geographical location between Asia, Europe, and Africa gives it a competitive advantage as a global logistics hub. Bahri plays a pivotal role in this transformation, contributing to improving supply chain efficiency and transporting energy and industrial products. The government's support for the sector through infrastructure investment and regulatory facilitation opens new horizons for the company to multiply its business size, especially with the growth of non-oil exports and the Kingdom's direction to diversify the economy.

Bahri enjoys a leading position in the local market due to the absence of a competitor of similar size in the Saudi maritime transport sector. Locally, Bahri faces limited competition from companies specializing in maritime services or oil transport via pipelines, in addition to land and rail shipping companies. Globally, Bahri competes with giant companies such as China's COSCO, Canada's Teekay, Denmark's Maersk, and the Netherlands' STOLT-Nielsen, especially in crude oil and chemical transport. Bahri's diversified fleet and international routes, along with its strategic relationships with Aramco and the Saudi government, provide it with a strong competitive advantage in the regional and global markets.

Bahri has witnessed several significant developments during the period of 2024–2025 that have had a direct impact on the stock's performance. Among the most notable is the renewal of oil transport contracts with Saudi Aramco, which has enhanced future revenue stability. The company also announced plans to expand its LPG tanker fleet and signed contracts to build new tankers in collaboration with global partners. In terms of sustainability, Bahri launched new environmental initiatives, such as the Environmental Development Fund, and invested in clean energy stations for ships. The introduction of digital technologies for fleet management and operational efficiency has contributed to cost reduction and increased competitiveness. Financially, the quarterly results for the second quarter of 2024 showed an 18% increase in net profit compared to the previous year. The company also experienced management changes with the appointment of a new board of directors comprising diverse expertise in energy and logistics.

Bahri follows a regular dividend policy reflecting the management's commitment to rewarding shareholders and enhancing the stock's attractiveness for investors seeking periodic income. In recent years, the average annual distribution has been around 2 Riyals per share, with a distribution of 2.25 Riyals for the profits of 2023 and 2024. This represents an annual dividend yield ranging between 4% and 5% based on the stock price, making Bahri one of the valuable stocks in the Saudi market in terms of return on investment. Dividends are typically paid in two installments annually, covering more than half of the annual net profit, reflecting the strength of cash flows and the company's financial flexibility.

Saudi Vision 2030 opens wide horizons for Bahri to expand its activities and increase its market share both locally and internationally. Projects to develop ports, roads, and railways enhance supply chain integration and increase demand for maritime transport services. The diversification of the Saudi economy towards manufacturing and petrochemicals provides new opportunities for transporting chemicals and gas. International partnerships and entry into liquefied natural gas (LNG) projects enhance Bahri's ability to expand into Asian and European markets. Additionally, the government's support for local content and maritime industries provides investment opportunities in building and managing specialized fleets, making the company a key partner in national infrastructure projects.

Despite Bahri's strong financial position, the company faces several risks that could impact its future performance. The most prominent of these risks is the volatility of global oil prices, as the demand for maritime transport services is directly linked to the volume of oil exports. Geopolitical changes in the region may affect shipping routes and insurance costs. Additionally, increasing competition from global companies and technological advancements (such as smart ships or clean fuels) require Bahri to make continuous investments in fleet modernization. International regulatory and environmental changes may impose additional obligations and increase operating costs. It is essential for the company to remain flexible and capable of adapting to these challenges to achieve sustainable growth.

Bahri's performance is influenced by several macroeconomic factors, including oil prices, global trade volume, government policies supporting exports, and developments in national infrastructure. Rising oil prices and increased export volumes from Saudi Arabia raise the demand for oil tankers, positively reflecting on Bahri's revenues. Conversely, periods of economic recession or declining global demand for oil and petroleum products lead to lower shipping rates. Government policies supporting logistics, such as facilitating customs procedures and improving port infrastructure, enhance operational efficiency and increase the company's competitiveness. Furthermore, the entry of integrated transport projects (land-sea-air) contributes to diversifying Bahri's services and stabilizing revenues.

Bahri adopts a clear strategy in sustainability and social and environmental responsibility. The company has launched several initiatives to reduce carbon emissions and improve fuel efficiency in its maritime fleet. It has invested in developing clean energy stations for ships and collaborated with government entities to establish an Environmental Development Fund. Bahri also supports training and qualifying Saudi personnel in the maritime transport sector and participates in logistics events and forums to enhance knowledge and build local capacities. These initiatives align with the Kingdom's goals for sustainable development and localization of maritime industries, while also enhancing the company's image among local and international investors.

Bahri's quarterly financial results for 2024–2025 showed continued growth in revenues and net profit, supported by improved shipping rates and fleet expansion. In the second quarter of 2024, net profit reached approximately 530 million Riyals, an 18% increase compared to the same period last year. The company also recorded an increase in total operating revenues of 10–15% compared to 2023. The company's success in securing new contracts for oil and gas transport, along with the expansion of LPG transport services, boosted revenue flow. Bahri maintained good liquidity levels, with a low debt ratio, enabling it to finance expansions without significant financial pressure. These results indicate the company's ability to adapt to market dynamics and achieve strong operational performance.

In 2025, Bahri received a positive credit rating from one of the global rating agencies, based on improved financial performance and stable cash flows. The continued appearance of Bahri stock within the core trading indicators reflects investor confidence in the company's long-term stability. Positive ratings enhance the stock's attractiveness and increase the likelihood of attracting local and international investment funds and financial institutions. Additionally, the regular dividend policy and prudent financial management contribute to enhancing the company's image as a stable option in the maritime transport sector, despite the challenges and risks surrounding the sector.