BAHRI REPORTS FOURTH QUARTER & FULL YEAR 2024 RESULTS WITH RECORD REVENUE AND NET PROFIT

• Bahri surpasses SAR 2 billion annual net profit for the first time. Historic 2024 net profit of SAR 2.17 billion (+34% YoY) and record revenue of SAR 9.48 billion, (+8% YoY).
• Q4 2024 net profit of SAR 474 million (+18% YoY), reflecting sustained revenue growth and enhanced cost efficiencies propelled by favorable freight rates overall, fleet expansion and modernization, and effective voyage planning.
• Fleet expansion and modernization accelerated in 2024 with 11 vessels joining the owned fleet – five net additions and six replacements of older vessels – while long-term chartered vessels increased to 16 from 10, expanding operated fleet to 109 vessels.
• Net debt-to-EBITDA of 1.68x, supported by increased profitability and a resilient balance sheet.

RIYADH, Saudi Arabia, Feb. 2, 2025 /PRNewswire/ -- The National Shipping Company of Saudi Arabia ("Bahri" or the "Company", 4030 on the Saudi Exchange), the Kingdom's leading shipping and logistics provider, announced its financial results for the fourth quarter and full year 2024 showing an 18% and a 34% increase in net profit, compared to the same periods in 2023, respectively, driven by favorable freight rates overall, increased cargo volume supported by fleet expansion, improved operating cost efficiencies, and higher earnings from associated companies.

Eng. Ahmed Ali Al Subaey, Chief Executive Officer of Bahri, commented:

"2024 was more than just a record-breaking year for Bahri – it was a pivotal year that laid the foundation for our future. We took strategic steps to reinforce Bahri's position as a global leader in shipping and logistics by modernizing and expanding our fleet, with a net addition of five vessels.  We also grew our customer base and secured new demand channels, supported by the trust and reputation for reliability we have built in the market, along with the strength of our partnerships and our employees' unrelenting focus on consistently exceeding expectations.

Throughout the year, we remained committed to operational excellence – building resilience, efficiency and discipline across our business, while maintaining agility to seize opportunities and mitigate risks presented by a volatile and evolving market.

Our journey remains firmly directed towards delivering sustained, value-accretive growth for our shareholders, championing the transformation of the Kingdom's shipping and logistics sector in line with Vision 2030, and strengthening our role as a vital and responsible participant in the global supply chain."

BAHRI COMPANY HIGHLIGHTS

Financial Summary

Fourth Quarter 2024

Bahri's fourth quarter 2024 (Q4 2024) revenue grew 10% year-on-year (YoY) to SAR 2.22 billion, primarily supported by increased overall cargo volumes mainly driven by the expansion of Bahri's operated fleet (owned and chartered vessels), as well as generally higher freight rates.

Q4 2024 EBITDA increased 13% YoY to SAR 1.12 billion, driven by EBITDA margin expansion to 50% from 49% in Q4 2023, reflecting improved cost efficiencies mainly from voyage optimization and fleet modernization.  Bahri's EBITDA growth was mainly propelled by increased EBITDA by the Oil and Integrated Logistics business units (BUs), as well as increased income from associated companies.

Consequently, Bahri's Q4 2024 net profit rose 18% YoY to SAR 474 million, with net profit margin improving to 21% from 20% in Q4 2023.

Full Year 2024

In 2024, Bahri achieved a record-breaking revenue of SAR 9.48 billion, up 8% compared to 2023, driven mainly by higher cargo volumes resulting from fleet expansion and generally higher freight rates.

EBITDA increased by 23% YoY to SAR 4.71 billion, propelled by revenue growth and supported by effective cost management from voyage and scheduling optimization, as well as the cost savings resulting from the modernized fleet.

In addition, Bahri recorded a significant increase in income from associated companies compared to the prior year. This increase was primarily due to the twin effect of the increased equity stake of  Bahri in Petredec Group from 30% to 40% back in October 2023, and Petredec's higher net profit in 2024, compared to 2023.

Net profit reached an all-time high of SAR 2.17 billion in 2024, a 34% surge from the previous year, driven by strong EBITDA performance.  Bahri's net profit margin markedly expanded to 23% in 2024 from 18% during the previous year.

In 2024, Bahri generated SAR 3.47 billion in net operating cash flow, reflecting a 3% decline from 2023, primarily due to an unusually large release of cash from working capital changes in 2023.

Capital expenditures reached SAR 5.48 billion in 2024, up from SAR 1.65 billion a year ago, largely driven by a SAR 4.82 billion investment in fleet modernization and expansion. As a result, free cash flow for 2024 amounted to an outflow of SAR 2.01 billion, compared to an inflow of SAR 1.91 billion in 2023.  SAR 524 million of cash proceeds from the sale of six older vessels during 2024 partially offset this outflow.

Bahri funded its 2024 capital expenditures through a combination of cash generated from operations, vessel sale proceeds, new borrowings and its cash reserves.  Net availment of loans and borrowings, after loan repayments and lease liability settlements, amounted to SAR 549 million, while the Company's cash decreased by SAR 1.09 billion, leaving a year-end cash balance of SAR 1.82 billion.

A key financing milestone in 2024 was a USD 756 million (SAR 2.84 billion) 10-year Murabaha financing agreement secured in October to partially fund the approximately SAR 3.75 billion purchase of nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation, with the vessels serving as collateral.  By year-end 2024, USD 304 million (SAR 1.14 billion) of the facility had been utilized, reflecting full payment and delivery of four of the nine VLCCs ordered.  Of these four VLCCs delivered, two vessels joined the operated fleet in Q4 2024.

As a result of increased borrowings and lower cash reserves, net debt rose to SAR 7.90 billion by end-2024, up from SAR 5.44 billion a year ago.  Despite this increase, strong earnings during the year partially offset the impact, resulting to a net debt-to-EBITDA ratio of 1.68x compared to 1.42x at the end of 2023. The Company remains confident in maintaining a healthy balance sheet while continuing to invest in fleet modernization and expansion.

Following the close of 2024, Bahri secured a five-year Murabaha revolving credit facility of USD 800 million (SAR 3.00 billion) in January 2025.  This facility will further strengthen the financial position of the Company, and support ongoing working capital and capital expenditure requirements, as needed.

Fleet Update

Owned fleet movement

In 2024, Bahri significantly strengthened its fleet with 11 modern secondhand vessels joining the owned fleet, comprising five VLCCs, four chemical tankers, one dry bulk carrier and one multipurpose vessel.  Concurrently, the Company divested six older vessels – three chemical tankers, two VLCCs and one product tanker – resulting in a younger, more technologically advanced and higher-value fleet overall.  By the end of 2024, Bahri owned fleet has expanded to 93 owned vessels from 88 vessels at the end of 2023.

Looking beyond 2024, three VLCCs and one dry bulk carrier – which had been delivered in Q4 2024 – will be operationalized in Q1 2025. Bahri has ordered seven other VLCCs which will likewise join the fleet by the first half of 2025.

In addition, the Company operated 16 vessels under long-term lease agreements of more than one year, up from 10 in the previous year, as well as various vessels on shorter term leases.  The leased vessels helped address Bahri's increased cargo requirements, as well as scheduling and location constraints on Bahri's owned fleet. As a result, Bahri's operating fleet, comprising of owned and leased vessels, reached 109 vessels at end-2024, compared to 98 at end-2023.

Strategic Updates

Bahri reached a major milestone in 2024 with the operation of two out of three mobile seawater desalination floating barges stationed off the coast of Yanbu, Saudi Arabia – awarded by the Guinness World Records for being the largest of their kind in the world. The first barge commenced operations in Q2 2024, followed by the second in Q4 2024.  Together, the two desalination barges have a capacity of 100 million liters per day with a 20-year guaranteed off-take contract with the Saudi Water Authority.  This industry pioneering initiative creates a stable, long-term revenue stream for Bahri, while offering an innovative solution to address growing water demand along Saudi Arabia's coastline.

In December 2024, the Yanbu Grain Handling Terminal commenced commercial operations. Developed by the National Grain Company, a 50/50 joint venture between Bahri and the Saudi Agricultural and Livestock Investment Company (SALIC), the terminal has an annual handling capacity of 3 million tons of grain.  It aims to support Saudi Arabia's growing demand for essential grains and in strengthening food security in the Kingdom.

In July 2024, Bahri Ship Management (BSM) expanded its service portfolio by signing an agreement to provide technical ship management and crewing of vessels to Folk Maritime Services Company, a newly formed feeder and short-sea shipping operator.  This marked BSM's first foray into managing vessels beyond Bahri's fleet.  BSM has begun managing the first two vessels of Folk Maritime, which plans to significantly expand its fleet in 2025.

Post period end, in January 2025, Petredec and Bahri agreed to form a strategic partnership to address Saudi Arabia's increasing LPG and ammonia shipping requirements. The two companies will establish a dedicated joint commercial team for this venture, building on two decades of collaboration.

BUSINESS UNITS' HIGHLIGHTS

Bahri Oil

In Q4 2024, Bahri Oil reported a 9% YoY increase in revenue to SAR 1.02 billion, driven by higher freight rates, and increased cargo volumes backed by an expanded fleet.  EBITDA rose by 12% to SAR 527 million, reflecting the growth in revenue, as well as improved cost management, a reversal in doubtful account provisioning , and higher income from gains from vessel sales, resulting to an EBITDA margin expansion to 51% in Q4 2024 from 50% in Q4 2023.

For full year 2024, the BU achieved an 11% YoY growth in EBITDA to SAR 2.28 billion, despite a 4% decline in revenue arising from decreased charter-in vessel activity and the BU's exit from non-VLCC shipping in February 2024.  EBITDA growth was mainly driven by favorable freight rates, effective voyage planning which resulted to a two-fold increase in bunker subsidy gained by fueling within Saudi Arabia, and higher utilization of the BU's higher-margin owned vessels compared to chartered vessels.

In Q4 2024, two modern eco scrubber-fitted second-hand VLCCs were added to the fleet, while one older VLCC was divested. For all of 2024, the BU had a total of five VLCCs added to the fleet and divested two VLCCs and its last product tanker, resulting to a fleet of 41 vessels by year-end from 39 in 2023.

The BU expects to add at least 10 modern eco scrubber-fitted VLCCs to its fleet during the first half of 2025, further strengthening its position as a global leader in the sector.

In addition, exhaust gas scrubbers were installed on nine VLCCs during the year which reduced bunker costs while ensuring compliance with emissions regulations. This raised the number of scrubber-fitted VLCCs to 27 vessels, 61% of the fleet. By mid-2025, the BU expects 67% of its fleet to be equipped with scrubbers.

In December 2024, the BU secured a long-term Contract of Affreightment (COA) with Rongtong Logistics Company, a subsidiary of Rongsheng Petrochemical Company based in China. This marks Bahri Oil's first direct COA with a Chinese customer, representing a pivotal step in expanding its third-party cargo portfolio and reinforcing its market presence in Asia.

Bahri Chemicals

Bahri Chemicals recorded Q4 2024 revenue of SAR 746 million, up 4% YoY, reflecting stronger freight rates and higher cargo volumes enabled by a larger operated fleet. EBITDA fell by 9% to SAR 398 million, with EBITDA margin contracting to 53% in Q4 2024 from 61% in Q4 2023, mainly driven by a significant YoY decrease in margins from chartered vessels and a large decline in other income.  Other income fell to SAR 2 million in Q4 2024 compared to SAR 100 million in Q4 2023 due to the absence of vessel sale gains in the current quarter.

For the full year 2024, the BU achieved a 31% YoY rise in EBITDA, reaching SAR 1.91 billion due to a 19% growth in revenue, as well as cost optimization resulting to EBITDA margin improvement to 59% in 2024 from 54% a year ago. Strong full year performance was due to sustained cargo volume growth propelled by operated fleet expansion, favorable freight rates, and effective cost management of the BU's owned vessels which recorded a 5% decline in operating cost, as well as a three-fold increase in bunker subsidy.

The BU received four modern second-hand chemical tankers in Q4 2024.  Three of these were replacements for older vessels divested earlier during the year, while the fourth represented a net addition to the fleet, increasing its size to 33 vessels, up from 32 at the end of 2023.  To meet growing cargo demand, the BU expanded its long-term chartered fleet to 16 in 2024 from 10 in the previous year.  As a result, the BU's operated fleet (excluding chartered vessels on short-term leases) grew to 49 vessels by year-end 2024 compared to 42 vessels at end-2023.

Bahri Integrated Logistics

Q4 2024 revenue of Bahri Integrated Logistics grew 7% YoY to SAR 312 million, propelled by strong market demand and favorable freight rates for breakbulk, roll-on/roll-off (RoRo) and container cargo shipping.  Revenue growth was further supported by the addition of a multipurpose (MPV) vessel in February 2024 to its existing fleet of six vessels, expanding operational scope for Bahri Line, the BU's shipping business. Additionally, steady revenue growth in Bahri Logistics, the BU's non-shipping logistics segment, contributed to the positive performance, driven by an expanding customer base.

Q4 2024 EBITDA increased by 54% to SAR 84 million, reflecting revenue growth, and improved profitability in Bahri Line due to favorable market dynamics and incremental cost savings from the newly added MPV vessel, as well as effective cost management in Bahri Logistics.

Full year 2024 EBITDA growth was 48% YoY, rising to SAR 198 million.  This was driven primarily by Bahri Line's strong performance amidst a favorable market environment and robust sales growth. Breakbulk, RoRo and container cargo volumes saw strong growth during the year, while Bahri Line capitalized on rising project cargo demand with its new MPV vessel.

Meanwhile, Bahri Logistics continued to achieve steady quarter-to-quarter profitability improvements as it advanced its business transformation, marked by an expanding asset and client base, alongside capability enhancements across its various service offerings.  Its Contract Logistics business made significant strides in 2024, with its client portfolio growing seven-fold compared to 2023, and leased warehouse space increasing 60% YoY to 160,000 square meters.  Additionally, Bahri Logistics' bonded zone facility in King Fahad International Airport in Dammam, Saudi Arabia launched operations in December 2024, while a larger bonded zone warehouse at the Jeddah Islamic Port commenced construction during the year, with completion targeted for the second half of 2025.

Bahri Dry Bulk

Revenue of Bahri Dry Bulk surged 68% YoY in Q4 2024 to SAR 115 million due to increased cargo volumes, reflecting the success of a strategic initiative to secure new demand channels while expanding existing ones.  EBITDA grew by 6% in Q4 2024, reaching SAR 34 million, driven by revenue growth that was partially offset by EBITDA margin compression coming from the increased deployment of lower-margin chartered vessels to accommodate higher customer cargo requirements.

For full year 2024, revenues grew by 74% YoY to SAR 489 million, driven by a notable increase in cargo volume.  To support growing demand, the BU expanded its fleet with one dry bulk carrier in July 2024, bringing the total fleet size to 12.  A second carrier is expected to join the fleet in Q1 2025. Additionally, chartered vessels were deployed to address remaining capacity gaps, contributing to a substantial shift in revenue composition, and resulting to margin compression due to lower profitability of chartered vessels.  Consequently, EBITDA margin contracted to 26% from 48% a year ago, and EBITDA declined by 7% to SAR 126 million.

Overall, the BU successfully and substantially expanded its market reach and demand channels and maintained a positive EBITDA despite the margin pressures.  Looking ahead, the BU intends to strategically increase the deployment of its owned tonnage.

Bahri Ship Management

Bahri Ship Management (BSM) provides a full range of ship management and marine support services for all vessels owned by the Company, and oversees all aspects of vessels operations, including technical services, crewing, acquisition, training, safety, and regulatory compliance, to maximize the fleet's commercial potential and ensure that all vessels are technically sound, seaworthy and crewed by skilled professionals.

Key 2024 achievements:

• Bahri recorded a 12-month trailing Lost Time Injury Frequency Rate of 0.42 injuries per million hours worked, an increase from 0.35 at end-2023, but an improvement from the 0.46 rate recorded at end-September 2024 . During the year, there were no fatalities across the Company's operations, and no oil spills occurred from vessels owned by the Company. In addition, the Company conducted 270 transits through the Red Sea and the Gulf of Aden without any incidents despite heightened geopolitical tensions.
• Delivered intensive onboard safety training for over 2,000 crew members in 93 vessels throughout 2024.
• Successfully prepared 11 newly acquired vessels for deployment at sea, providing these vessels with crew, installing advanced communication, digital and maintenance systems, and completing all necessary certifications.
• Launched first venture into third-party ship management through an agreement with Folk Maritime Services Company, a newly established Saudi-based feeder and short-sea shipping operator.  BSM currently services the first two ships of Folk Maritime, and will cover additional vessels once acquired.
• Installed the SMARTShip® high-frequency data collection and analysis system in 15 vessels, bringing the total to 73 ships equipped with the system.  SMARTShip® is an advanced digital platform that enables real-time tracking, optimized route planning, improved fuel efficiency, and predictive maintenance capabilities.
• Completed installation of ballast water treatment systems (BWTS) across the entire fleet, achieving full compliance to the 2024 deadline set by the International Maritime Organization for this.  In 2024, the system was installed in the remaining nine vessels of the fleet.
• Bahri was recognized as "Shipping Company of the Year" and "Tanker Operator of the Year" at the Maritime Standards Awards 2024.

Inaugural Analyst Call and Earnings Presentation

Bahri will be hosting its inaugural analyst call on Tuesday, 04 February 2025, at 16:00 KSA time to present its Q4 and FY 2024 Financial Results. For conference call details or any inquiries, please email ir@bahri.sa.

ABOUT BAHRI

Bahri, established in 1978 as the National Shipping Company of Saudi Arabia, is the Kingdom's premier shipping and logistics company and a global leader in maritime transportation. Headquartered in Riyadh, Saudi Arabia, the company operates a fleet of 93 owned vessels, 16 vessels under long-term lease contracts, and two floating desalination barges as of end-2024. It is one of the largest owners and operators of VLCCs worldwide.

Bahri's business activities span the purchase, sale and operation of ships for the transportation of crude oil and refined products, chemicals and dry bulk, as well as freight forwarding, warehousing, cargo clearance and stowage, and other logistical services, organized through four business units – Bahri Oil, Bahri Chemicals, Bahri Dry Bulk and Bahri Integrated Logistics – as well as the Company-wide Bahri Ship Management shared service.

With its 4,000+ strong onshore and offshore team, Bahri is committed to supporting Saudi Vision 2030, and transforming Saudi Arabia into a strategic regional shipping hub and logistics gateway.

Bahri Oil

Bahri Oil is one of the world's leading owners and operators of VLCCs and is among the top five VLCC owners globally. With a fleet size of 41 VLCCs, the fleet represents about 4% of global VLCC capacity. While Bahri Oil's primary cargo load region is the Arabian Gulf market, the BU also caters to requirements across all major VLCC routes worldwide. Bahri Oil is the exclusive transporter of Saudi Aramco VLCC crude cargos sold on delivered basis around the world. Saudi Aramco is the world's largest crude oil producer and holds a 20% equity stake in Bahri Company.

Bahri Chemicals

Bahri Chemicals owns and operates a diverse fleet of tankers that transports a wide array of liquid cargos, including chemicals, clean petroleum products, vegetable oils and biofuels to customers worldwide. The BU's customers include chemical producers, integrated oil companies and refiners, commodity traders, and players in the vegetable oil / biofuel markets, with Saudi Aramco and Saudi Basic Industries Corporation (SABIC) as its major customers. The BU is actively involved not only in the spot market but also in contracts of affreightment and time charter arrangements, and the sale and purchase of vessels.  The BU is incorporated as the National Chemical Carriers Company, and is 80% owned by Bahri Company, with the remaining 20% owned by SABIC.

Bahri Integrated Logistics 

Bahri Integrated Logistics is the leading supplier of direct shipping services from the United States' eastern and Gulf coasts to Jeddah, Dubai, Dammam, and Mumbai, including moorages in the Mediterranean region and European ports en route. It is one of the top 10 breakbulk, RoRo and container carriers globally. The BU also provides land, sea and air freight forwarding, customs clearance, container services, contract logistics, warehousing, and other supply chain services for aerospace, defense, construction, perishable, pharmaceutical and healthcare, oil and gas, hotel, and automotive companies and institutions.

Bahri Dry Bulk

Established in 2010 through a 60/40 joint venture between Bahri and the Arabian Agricultural Services Company, Bahri Dry Bulk is a fully integrated shipowner and operator in the regional and global transportation of dry bulk commodities, with focus on inbound and outbound cargo to and from Saudi Arabia. Headquartered in Riyadh with a regional office in Dubai, the BU transports bulk cargoes, primarily grain, fertilizers, coal, and iron ore, along worldwide shipping routes to supply the world's food and energy needs. The BU has a diversified fleet employment strategy that includes spot market, contracts of affreightments and time charter agreements.

Bahri Ship Management

Bahri Ship Management was established in 1996 as a subsidiary of Bahri Company to provide a full range of ship management and marine support services for all vessels owned by the Company with the goal of maximizing the fleet's commercial potential. It directly operates and provides technical services for its managed vessels, and is also responsible for crewing, vessel acquisition, training, health and safety, and environmental and regulatory compliance of Bahri's ships.

GLOSSARY OF TERMS

Non-IFRS (International Financial Reporting Standards) financial measures

Capital expenditures: The sum of additions of property and equipment, projects under construction and intangible assets as shown in the Statement of Cash Flows. Represents the amount of cash spent during the period for maintaining and expanding the long-term asset base of the Company.

EBITDA: Earnings before interest, tax, depreciation and amortization. Calculated by adding back depreciation of property and equipment, depreciation of right of use assets and amortization/derecognition of intangible assets as shown in the Statement of Cash Flows to the sum of operating profit and share of results of equity accounted investees as shown in the Statement of Profit or Loss. Used by the Company to evaluate operating performance, and as a proxy for operating cash flows.

Free cash flow: Net cash flow generated from operating activities minus capital expenditures, as shown in the Statement of Cash Flows. Provides an indication of the cash generated during the period that can be used for dividend payments, paying down debt, increasing cash at hand, and/or for other investments.

Net debt: The sum of current and non-current loans and borrowings and lease liabilities minus cash and cash equivalents, as shown in the Statement of Financial Position; a measure of the indebtedness of the Company.

Net debt / EBITDA:  The ratio of end-of-period net debt to EBITDA of the twelve months preceding the end of the period. Provides an indication of the number of years the Company would take to repay its debt from cash earnings if net debt and EBITDA are held constant. Expressed as a multiple of years.

Shipping and operational terms

Ballast water:  The seawater that vessels take on or discharge to maintain draft, stability and balance during voyages.

Bonded zone: A designated area within a country, such as a warehouse, port, or industrial park, where imported goods can be stored, processed, or manufactured without being subject to local customs duties or taxes until they are moved into the domestic market.

Breakbulk:  Cargo that is packed, bundled or placed in bags, drums, crates or pallets.  Each cargo is handled individually rather than in standardized containers or as large, homogenous loads.

Charter:  A term used in shipping for a contract between a ship owner and a charterer that spells out the terms for the use of a vessel.  The charterer is the entity that rents or leases a vessel to transport cargo.  The contract can be of different types, such as a time charter which is a time-bound agreement, where a ship owner leases a vessel to a charterer for a fixed period of time, with the charterer free to sail to any port and transport any cargo, subject to legal regulations, or a voyage charter for which the charterer leases the vessel for a specific voyage from one port to another. "Charter-in" refers to Bahri being the charterer; while in a "charter-out" arrangement, Bahri is the ship owner.  "Chartered vessels" in this document refers to vessels that have been leased by Bahri.

Container cargo:  Goods or commodities transported in standardized 20-foot or 40-foot steel shipping containers.

Contract logistics: Logistics is defined as the management of moving materials from one location to another. Contract logistics is an arrangement where a company outsources its logistics function to a specialized logistics provider.

Contract of Affreightment: A contract between a ship owner and a cargo owner, in which the ship owner agrees to carry goods for the cargo owner in its ship or to give the cargo owner the use of the whole or part of its ship's cargo-carrying space for the carriage of goods on a specified voyage or voyages or for a specified time.

Dry bulk:  Refers to unpackaged goods shipped in large quantities and are typically homogenous in nature.  Examples include grain, coal, sand and iron ore.

Eco vessels:  Ships that possess high energy efficiency and low emissions features and equipment to reduce their environmental impact, such as fuel-efficient hull and propeller designs, scrubbers, ballast water treatment system, etc.

Feeder operator: An operator of medium-size vessels that transport cargo between small and major ports.

Lost Time Injury Frequency Rate:   Measures the number of lost-time injuries per million hours worked. Tracked and reported by Bahri on a trailing 12-month basis.

LPG: Liquefied petroleum gas, a flammable mixture of hydrocarbon gases, mainly propane and butane, compressed into a liquid state for ease of storage and transportation, and derived primarily from crude oil refining and the processing of natural gas.

Multipurpose vessel:  A ship built to carry a wide range of cargoes.  Abbreviated as MPV.

Murabaha financing:  Murabaha financing is an Islamic financing structure wherein an intermediary buys an asset with free and clear title to it. The intermediary and prospective buyer then agree upon a sale price (including an agreed upon profit for the intermediary) that can be made through a series of installments, or as a lump sum payment.

Project cargo:  Large, complex and high-value pieces of equipment or materials that are typically for specific projects.  Examples include engines, construction equipment, trains, and wind turbines.

Roll-on / Roll-off: Refers to the method of loading and unloading of cargo into a vessel, which is by the use of a ramp, or to the vessel that has this equipment, or to the type of cargo that can be loaded and unloaded using this method.  Abbreviated as RoRo.

Scrubbers: Exhaust gas cleaning systems that are used to remove harmful substances, such as sulfur dioxide, from the exhaust gas stream of ships, allowing continued compliance with international emissions standards while using high sulfur fuel oil as fuel.

Spot market:  A marketplace for buying and selling shipping services for immediate or near-term delivery, in contrast to long-term charter agreements.  Spot rates refer to one-time, short-term freight contracts where rates fluctuate on real-time supply and demand conditions.

Very Large Crude Carrier: A crude oil tanker with a cargo carrying capacity of up to 250,000 tons. Abbreviated as VLCC.

Vision 2030: A blueprint developed by the government of Saudi Arabia for diversifying its economy, empowering its citizens, creating a vibrant environment for both local and international investors, and establishing Saudi Arabia as a global leader, by leveraging the Kingdom's unique strengths—its pivotal role in the Arab and Islamic worlds, its strong investment capabilities, and its strategic geographical position.

DISCLAIMER

This document may contain statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of Bahri, the National Shipping Company of Saudi Arabia (the "Company"). These statements are based on, amongst other things, the Company's current plans, estimates and projections, as well as its expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. As a result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. The Company is not obliged to, and does not intend to, update or revise any forward- looking statements made in this presentation whether as a result of new information, future events or otherwise.

This communication has been prepared by and is the sole responsibility of the Company. It has not been reviewed, approved, or endorsed by any financial advisor, lead manager, selling agent, receiving bank or underwriter retained by the Company, and is provided for information purposes only. In addition, because this communication is a summary only, it may not contain all material information and it should not form the basis for any investment decision.

The information and opinions herein are believed to be reliable and have been obtained from sources believed to be reliable, but no representation or warranty, whether express or implied, is made with respect to the fairness, correctness, accuracy, reasonableness, or completeness of the information and the opinions contained herein. There is no obligation to update, modify or amend this communication or to otherwise notify you if any information, opinion, projection, forecast, or estimate set forth herein, changes or subsequently becomes inaccurate.

You are strongly advised to seek your own independent advice in relation to any investment, financial, legal, tax, accounting, or regulatory issues discussed herein. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency, rate, or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. The Company disclaims liability for any loss arising out of or in connection with your use of, or reliance on, this document.

These materials may not be published, distributed, or transmitted and may not be reproduced in any manner whatsoever without the explicit written consent of the Company. These materials do not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Non-IFRS financial measures

This document includes certain "non-IFRS financial measures", i.e. measures which are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS. The measures are provided as additional information to complement IFRS measures by providing understanding of the Company's results and they have been provided as the Company believes they are useful measures for investors. Accordingly, these non-IFRS measures should not be considered in isolation or as a substitute for analysis of the Company's financial information reported under IFRS.

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