Leadership

I am proud to share that Bahri once again fulfilled its role as a vital and responsible leader in the global supply chain, and as Saudi Arabia’s shipping and logistics champion. In 2024, we played a crucial role in connecting economies and people worldwide by reliably facilitating the movement of more than 750 million barrels of crude oil, 19 million tons of chemicals and clean petroleum products, two million tons of fertilizers, one million tons of grain and one million cubic meters of breakbulk and RoRo cargo to wherever these were needed around the world.

We accomplished this with an unwavering commitment to safety, operational excellence and adherence to the rules of the seas. Not a single fatality was recorded among our seafarers, our vessels faced no detentions at port due to deficiencies, and our ships passed through waterways beset by heightened geopolitical tensions without disruptions. Throughout the year, we ensured full compliance with environmental and maritime regulations, underscoring our commitment to responsible and sustainable business practices.

Bahri also contributed significantly to advancing the ambitions of Saudi Arabia’s Vision 2030 for the shipping and logistics sector. We facilitated Saudi trade and economic advancement through strong volume growth across multiple markets, with the majority of our cargo shipped to or from Saudi Arabia. Additionally, we expanded our logistics business, increasing our assets and customer base, and enhancing synergies with our shipping operations. These moves strengthened the localization of the Kingdom’s supply chains and positioned Bahri as a key enabler of Saudi Arabia’s broader economic transformation. Meanwhile, we commenced operations of our floating seawater desalination barges, pioneering an innovative solution to the Kingdom’s water needs while adding stability and diversification to our revenue streams.

Our commitment to fleet modernization and expansion is a key pillar of our growth strategy. In 2024, we contracted the acquisition of 22 vessels, of which 15 were delivered before year-end and the remaining seven are scheduled for delivery in the first half of 2025. This strategic investment directly supports Vision 2030’s goal of positioning Saudi Arabia as a global hub for shipping and logistics, while ensuring that Bahri remains at the forefront of the industry.

Financially, we achieved unprecedented success, which reflected our strong operational performance and disciplined approach to growth. Bahri’s % 2.17 billion net profit for 2024, as well as the % 9.48 billion revenue underpinning this, were the highest in our history. In addition, we remained committed to returning value to our shareholders. In March 2025, we announced the Board’s recommendation to the General Assembly to distribute cash dividends of % 738 million for fiscal year 2024, as well as a grant of one share for every four owned shares.

As we look ahead to 2025, we remain steadfast in our mission to drive economic prosperity - both globally and within the Kingdom - and in delivering value to our shareholders. We will continue to expand our market presence, refine our operations for greater efficiency and navigate challenges with agility and foresight.

On behalf of the Board, I extend my sincere appreciation to our shareholders for their trust and confidence, and to the Government of Saudi Arabia for its steadfast support to our industry and its commitment to the Kingdom’s economic transformation.

Delivering record financial performance

We delivered our highest net profit in our 46-year history, reaching % 2.17 billion - a 34% year-on-year increase - underscoring the strength of our diversified portfolio and the success of our strategic initiatives. We capitalized on robust demand across multiple markets, expanded our demand channels and outperformed market benchmarks, resulting in record revenues of % 9.48 billion. Central to this achievement is the trust and reputation for reliability that we have built with our customers, supported by our employees’ dedication to delivering excellence.

Disciplined cost management and operational optimization also played a crucial role in our success, expanding our net profit margin to 23% from 18% in 2023. The strength of our earnings enabled us to reinvest in our growth strategy while maintaining a resilient balance sheet. Additionally, we secured % 2.84 billion in financing to support our fleet expansion, complemented by a % 3 billion revolving credit facility arranged post-2024 to support working capital and capital expenditure requirements, enhancing our capacity to seize future growth opportunities.

Expanding and modernizing our fleet

In 2024, we took significant steps to expand and modernize our fleet with the acquisition of 15 modern second-hand vessels, 11 of which were operationalized and commercially deployed before year-end. We also divested six older vessels. In all, these actions brought the number of our owned vessels in operation to 93 at end-2024, up from 88 at end-2023.

Additionally, we increased the number of charter-in vessels we operate on long-term lease contracts from 10 at the beginning of 2024 to 16 at year-end.

Likewise, we secured the purchase of seven other vessels during the year, scheduled for delivery in the first half of 2025.

This strategic expansion enabled us to meet rising customer demand, enhanced our operational capacity and efficiency, broadened our service offerings and market presence, and improved our fleet’s environmental profile. Our commitment to modernization also extended to sustainability, with continued investment in eco-friendly technologies and in maintaining compliance to evolving global maritime regulations.

Alongside fleet expansion, we strengthened our in-house ship management capabilities to maintain the highest standards of safety, reliability and performance across our operations, ensuring seamless scalability as our fleet continues to grow.

Operational excellence and digital transformation

Throughout the year, we remained steadfast in our commitment to operational excellence. We prioritized safety, achieving a year of zero fatalities and no major incidents in our sea voyages despite heightened geopolitical tensions. Our performance in port inspections globally continued to substantially outperform industry averages, reflecting our commitment to best-in-class operations.

Our investments in digital transformation also gained momentum, enhancing our ability to optimize fleet deployment, streamline logistics operations, and drive efficiency through automation and AI-driven analytics. By leveraging real-time data analytics and advanced digital tools, we enhanced decision-making and operational agility, reinforcing our competitive edge in an increasingly technology-driven industry.

Diversification and growth beyond shipping

Key milestones in our diversification strategy include the launch of commercial operations of our floating seawater desalination barges. These barges provide an innovative and sustainable solution to Saudi Arabia’s water needs, while creating a stable, long-term revenue stream for Bahri.

Additionally, the completion of the Yanbu Grain Handling Terminal with our partner SALIC strengthens our role in supporting food security and supply chain localization in the Kingdom.

Meanwhile, we have taken significant strides in transforming our logistics business, with its contract logistics segment reaching sustainable mass and substantial market presence. We also began operations at our first bonded zone facility at King Fahad International Airport in Dammam, while a larger facility at Jeddah Islamic Port is set for completion in 2025.

These developments align with our broader strategy of creating synergies across our businesses and unlocking new revenue streams beyond core shipping operations.

A future of resilient, value accretive growth

The milestones achieved in 2024 positioned Bahri for strong, value accretive growth in 2025 and beyond. We anticipate growth to be driven by the sustained and balanced expansion of our fleet, underpinned by the substantial untapped demand in the markets we serve, and coupled with strengthening our presence in our non-shipping businesses.

At the same time, we remain committed to strengthening resilience as we execute our growth strategy. We will proactively navigate potential challenges, including market volatility, global economic shifts, geopolitical tensions and the cyclical nature of our industry. Our investment approach will be both opportunistic and strategic, and we aim to optimize funding structures to maintain balance sheet health.

Ultimately, our journey remains firmly directed towards delivering sustained value to our shareholders, advancing the transformation of Saudi Arabia’s shipping and logistics sector in support of Vision 2030, and strengthening our role as a vital and responsible leader in the global supply chain.

These accomplishments would not have been possible without the dedication and expertise of our people - both offshore and onshore - and the leadership of my fellow members in the Executive Management team. I also extend my gratitude to our Board of Directors for their wisdom, guidance and vision.

Finally, I want to thank our customers, whose trust and partnership has driven our success and will continue to shape our future.

With a strong foundation now established, we enter 2025 with confidence, ready to embrace new opportunities, and deliver greater value to all our stakeholders.