60
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Annual Report 2018
Bahri Chemicals was established as a joint venture with the Saudi Basic Industries Corporation (SABIC), with Bahri owning an 80-percent stake and the remaining 20 percent owned by SABIC. Its objective is to provide services across 150 ports around the world, making it the largest owner and operator of chemical tankers in the Middle East.
Compared to its competitors, Bahri Chemicals delivered in 2018 an exceptional time charter equivalent (TCE) performance. It also improved the volume of its business contracts and focused on improving the efficiency of its IMO II fleet that ships chemicals and oil products.
Commercial Performance
8%
SAR872 million
SAR805 million
2017 Levels
Increase in Revenues
Bahri Chemicals boosted its capabilities in the chemicals sector and moved on to establish itself in other operational areas including the transportation of clean petroleum products (CPP) and vegetable oil products via established Business Results and Achievements trade routes. These new business channels helped the fleet compete in the Company’s various markets and achieve positive results as described below:
Net Profit Increase before Zakat and Tax
65%
SAR61 million
SAR37 million
2017 Levels
in 2018 3,062,018 Voyages
27%
• A total of 10 million tons of chemicals, clean petroleum
• Bahri Chemicals had to manage the challenge of fuel price increases in 2018 and the implications that had on the CPP market, adversely affecting supply and demand. However, our performance recorded continued improvements compared to other competitors as a result of careful adherence to Bahri’s long-term trading strategy.
• Bahri Chemicals continued to concentrate on building its
An Increase of More than 27% Compared to 2017
products (CPP) and vegetable oils were shipped over the year on the commercially managed fleet, in addition to a total of 20 million tons on Bahri’s owned fleet.
business in the CPP and vegetable oils sectors despite ongoing supply and demand volatility and other challenges related to high fuel prices. The Company believes these two sectors offer huge revenue potential once the market stabilizes – expected to happen after the Company’s fleet expansion is accommodated and the International Maritime Organization (IMO)’s regulations are implemented by January 2020.
Strategic Partnerships
• Bahri transported 4,598,410 tons of chemicals for SABIC. • Bahri successfully transported 191,857 tons of methanol for Methanol Holdings Trinidad Limited Company. • Bahri completed the transportation of 484,404 tons of chemicals for Saudi Aramco.
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