Bahri Annual Report-2008

The National Shipping Company of Saudi Arabia

Annual Report 2008


Chairman’s Message

Dear Shareholders

On behalf of my colleagues members of the Board of Directors, I am delighted to submit the annual report for the fiscal year 2008, which contains the most important results, stated objectives, projects and studies which have been completed or will be completed in the near future, in addition to the financial statements for the fiscal year 2008, which presents the company’s achievement of a net profit of SAR (750) million or (77%) increase over 2007. In the course of 2008, several strategic corporate objectives were achieved. The most important of these objectives was the approval of a comprehensive strategic plan by the Board of Directors with effect from the end of the year 2008. This strategic plan, which includes a review of the company's previous strategy that had been in operation since the start of year 2006, confirms the need to continue expansion and growth in various activities of the company (transportation of crude oil, chemicals, and general cargo) on a timely manner. It also focused on development of the organizational and administrative structure of the company, taking into account the economic situation and the extent of global financial impact on the various activities of the company, with due consideration to the fact that the company is not immune to this crisis. Therefore, the Board of Directors and management of the company have been monitoring the situation and waiting for opportunities to expand its various activities at a suitable time , as well as to engage in investment activities in the field of maritime transport and services to complement and exploit the opportunities available after the preparation of the necessary studies and to ascertain the economic feasibility based on a number of factors, including a rewarding profit returns, expected growth of the activity as well as the ability of the company to strongly participate in such activities, commensurate with its competitive capabilities. According to the strategic plan regarding crude oil transportation sector, the company received two VLCCs in 2008, and will receive the remaining four carriers during the year 2009, thereby increasing company'sVLCC fleet to 17 carriers with a capacity of (5.26) million tons of dead weight. In the sector of chemical products transportation, the National Chemical Carriers Limited Company “NCC” (80% ownership by NSCSA) received two new chemical carriers in 2008. Additionally, NCC has signed a contract to build 16 other carriers due to be delivered by 2012. In the general cargo sector, the company’s overall strategic plan recommended construction or purchase of a number of general cargo vessels to replace or supplement the current fleet, subject to preparation of necessary feasibility studies in accordance with approved investment criteria. With regard to organizational and administrative restructuring, the Strategic Plan recommended restructuring of certain sectors of the company, whereby the various functions of the company would become independent business units, stressing on the importance of giving due care and attention to the existing human resources and investment in the development of their capabilities through constant training and providing updated information on all developments in their respective fields of work to ensure the highest degree of operational, financial and administrative efficiency. In the field of information technology, the company has conducted a study to evaluate its technical systems and future requirements of latest information technology, and has signed contracts for the application of the Enterprise Resource Planning (ERP) system, which aims at updating and

Powered by