The National Shipping Company of Saudi Arabia (Bahri) announced the sale of one of its general cargo vessels to a scrap yard.
The move comes after the company recently announced the signing of ship building contracts to acquire six new generation general cargo vessels to replace the older fleet.
The firm said through a statement that this was in connection with the replacement programme approved by its board of directors for the general cargo fleet.
This sale is expected to generate a net profit of about US$ (5.6m) with the financial impact of the transaction reflected in the first quarter 2013 results.
The firm added that three further ships remained to be sold once the delivery of the first batch of new vessels arrive.