Annual Report 2018
Foreword by the Chairman Abdulrahman Mohammed Al-Mofadhi
To further reinforce Bahri’s leadership position in this sector, we strengthened our internal structure and foundations and focused on developing our long-term strategy. Despite key challenges in 2018, including the slow growth of global demand for crude oil due to increased oil prices as well as the new vessels that have entered the market, Bahri has maintained its strong position in the oil transportation market. We also delivered an increase in daily oil transportation rates as a result of our operational efficiency, optimal fleet scheduling, and benefitted from the long-term contracts. The expansion of Bahri Oil fleet has also played a key role in delivering competitive results and achieving higher profit margins throughout the year, in addition to decreasing the need to charter vessels from the market. The Saudi Vision 2030 has always served as a compass for our business. As a result of our dedication to fulfilling this strategic
vision, Bahri has ended 2018 with renewed hope and aspirations, confidently continuing our journey through an era full of opportunities to stimulate the growth of the global trade movement. We have also focused on building and advancing coastal cities by developing seaports and shipyards. In fact, this is one field where Saudi Arabia is a pioneer in, achieving a ranking of 26 globally in terms of the total net capacity of its commercial vessels, according to the 2018 annual report of the United Nations Conference on Trade and Development (UNCTAD). Bahri has also worked on developing partnerships with those investing in projects around Saudi Arabia, boosting our capability to secure an even better economic advantage for the Kingdom and taking full advantage of the country’s geographical prime location. This in turn will enable the Kingdom to acquire a larger share of the maritime market. 2018 has also been a year in
which many achievements and key partnerships have been realized. This is in line with our strategy, which aims to develop the logistics and transportation industry and further improve Saudi Arabia’s global position in this field by building strategic capabilities and relationships with key industry players. We have identified the main logistical projects which Bahri needs to be involved. Additionally, the Company has been qualified to engage with many projects nationwide. Finally, I would like to thank the government of the Custodian of the Two Holy Mosques and his Crown Prince for their support. I would also like to thank Bahri’s Board of Directors for all their continued efforts in helping us achieve our objectives. Finally, I extend my gratitude to Bahri’s owners, customers and employees for their endeavors in helping the Company meet the aspirations and expectations of its shareholders and customers.
Dear respected shareholders, It has been yet another successful year for Bahri, which continues to establish its reputation as one of the largest logistics and transportation companies in the world. Over the course of 2018, we have been even more determined to reinforce our leading position and play a major role in developing the global transport industry through our extensive expertise and promoting innovation and compliance as hallmarks of our business. 2018 has been a year of continued success. This success coincides with the maritime industry being positioned as a key component of the Saudi economy in line with the Saudi Vision 2030 and the aspirations of the government led by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud and Crown Prince Mohammed bin Salman. Their aim is to plan for the future with decisiveness and implement clear policies, as well as major development projects.
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