Bahri shareholders OK 10% dividend proposal

Shareholders of Bahri, the Saudi shipping giant, approved a 10% dividend proposal at the company’s general assembly. The payout covers the current financial period, the firm said in a filing.

The dividend works out to SAR 1 per share for each of the 350 million outstanding shares. That follows a pattern of annual distributions from the state-backed logistics operator. Bahri, formally the National Shipping Company of Saudi Arabia, runs the world’s largest fleet of very large crude carriers by capacity.

The approval locks in a return for holders of the Tadawul-listed stock at a time when many Gulf shippers have trimmed payouts to fund fleet expansion. Bahri itself has been spending heavily on newbuilds and on its chemicals and dry-bulk units. Keeping the dividend intact signals management’s confidence in cash flow from its core oil-transport and logistics contracts.

The stock has traded in a tight range over the past quarter, with volume thinning through the summer. Dividend announcements tend to tighten the float as yield-seeking accounts add positions. The ex-dividend date has not been set yet.

For broader perspective on how shipping stocks react to payout news, see our stock market analysis.