Bahri Annual Report- 2018

Annual Report 2018

Statement by the CEO Abdullah Aldubaikhi

The results of our operations over 2018 have demonstrated Bahri’s success in more than doubling our shipping movement compared to 2017, despite having to face significant challenges and obstacles. Our high-quality services and competitive prices were the main factors in establishing the Company as a preferred partner for global oil- producing stakeholders. Our aspirations have proven critical in overcoming any challenges. And Bahri was destined to demonstrate the robustness of its vision and effectiveness of its strategy, which is based on a philosophy where we accentuate today’s achievements and seize tomorrow’s opportunities. These factors will help us preserve Bahri’s leading position in the oil transportation market and increase the daily transportation rate of crude oil by continuously advancing operations and optimizing fleet scheduling, as well as benefiting from the strategic advantage offered by key long-term contracts. Expansion of the Bahri Oil fleet has also played a key role in achieving competitive results and profit margins over the year, in addition to decreasing the need for chartering carriers. Today, Bahri is the largest owner and operator of VLCCs in the world and the largest owner and operator of chemical tankers in the Middle East. The Company runs a huge fleet of 92 multi-purpose vessels, including

VLCCs, chemical and product tankers, general cargo vessels, and dry bulk carriers. We are proud to announce a 45-percent growth in our fleet over the last four years, with our VLCC’s total capacity increasing to 14 million DWT. The total capacity of our chemical tankers now stands at 1.4 million DWT. This has laid the foundations for the Company to be stronger than ever in the future. The Company has demonstrated its innovativeness across its business. We signed many contracts and partnerships over the year. Automation of our operations has also continued to be Bahri’s main area of focus. The Company invests in the automation of all human resources services by utilizing sophisticated global systems. We focused this year on developing our learning and development environment within the group by fostering innovation and creativity and by providing new services to the Saudi society. 2018 has been a year full of professional accomplishments and it was one where Bahri added 11 more prestigious awards, further establishing Bahri as a leading Company and a benchmark in the maritime transport and logistics industry. Bahri was recognized by many industry bodies as the best shipping company and ship manager of the year, and was honored for its role in supporting innovation and

talent development. We take pride in our impressive history and the success of our continued business, which aims to improve the maritime transport and logistics sector, and further strengthen our leading position. These factors are the reason why we were honored with a wide array of awards including the Tanker Shipping & Trade (TST)’s Award for Operational Excellence granted to the best commercial tanker building company. We were also awarded the Topaz Excellence in Logistics Award by Lloyd’s List South Asia, Middle East and Africa, among others. We present to you Bahri’s 2018 annual report, which provides a detailed outline on all lines of our business alongside detailed statistical information. This is to ensure we are meeting the highest transparency and governance standards that are an integral component of our corporate activities. We are forging ahead by entering new areas of operations and exploring new avenues where we can improve by identifying the finest technical solutions and highest safety and security standards, upon which we can base our business. I would like to conclude by thanking everyone who has contributed to Bahri’s achievements, especially our government, Bahri’s Board of Directors, shareholders and employees, along with our partners and customers.

Bahri has continued on its path to become a capable and successful corporation; its inspiring journey has spanned a little over 40 years and set a high benchmark for other businesses to follow. All praise and thanks is firstly due to Allah, then to the support of our government led by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, and Crown Prince Mohammed bin Salman, and finally our committed staff. At Bahri, we are always proud whenever the Saudi flag flies high on the mast of one of our ships; it is testament to the global nature of our operation, the prosperity of our Kingdom and the professionalism of our citizens who account for the majority of our employees, especially in leadership positions. It is proof to our efforts to achieve long- term objectives of developing our customer base and broadening the range of our global voyages.