Bahri Annual Report-2017

Annual Report 2017

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Executive Summary

Executive Summary

Bahri Oil

Bahri Chemicals

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Bahri Oil

Bahri Chemicals

41 VLCCs owned by Bahri 5 5 VLCCs from Hyundai Samho Heavy Industries (HSHI)

Bahri Chemicals’ fleet of ships increased in 2017 12 35

– – Bahri Chemicals achieved massive growth in 2017. The fleet that operates under its commercial department increased from 24 to 35 vessels. The increase in ship numbers, achieved via strong and long- term partnerships, resulted in a large rise increase in business and revenue volume over the year. – – Bahri Chemicals succeeded in delivering outstanding performance compared to its competitors. It focused on improving the volume and optimization of its fleet. Efficiency was improved by securing a firm foothold in certain operations such as transporting clean oil and vegetable oil products. This in turn enabled us to add new trade routes and ensure tankers were loaded on their return to loading terminals. – – Bahri Chemicals worked on increasing its international presence by establishing new commercial representative offices outside the Middle East, mainly in the US; the Company plans to establish a presence in Asia during 2018. – – Daily fuel savings of around five tons per ship were achieved through a wide range of initiatives that have been implemented over the last few years that aimed to reduce overall fuel consumption. – – The Company’s IMO2-type fleet has been developed while cargo growth has been boosted. The Company has also focused on diversifying the types of assets used – including stainless steel ships that will fulfill the various logistical needs of customers by being able to ship a wider range of products.

– – Bahri Oil succeeded in adding five recently built VLCCs to its fleet this year, increasing the number of ships we own to 41 that all feature advanced marine technology and the capacity to minimize fuel consumption. – – Bahri Oil’s fleet growth continued promisingly in 2018, when five new VLCCs that are being currently built by Hyundai Samho Heavy Industries (HSHI) and due for completion within the first half of the year will be added to the fleet, increasing the total number of ships to 46. – – The fleet expansion contributed to the implementation of the Company’s diversification strategy, which in turn has enabled the development of the customer base in 2017 and the introduction of new trade routes. – – The Arab Petroleum Investments Corporation (APICORP) Bahri Oil Shipping Fund has achieved considerable progress with regard to discussions it held with local, regional and international banks. The first investment fund is expected to be completed in 2018 and will help in the process of acquiring five VLCCs. – – The new quality standard ISO 9001:2015 has been approved and implemented in our business which constitutes an important transformation and key milestone in quality management. – – The world’s maritime transport industry has recognized the achievements of Bahri through two awards from the Maritime Standard and the Lloyd’s List for Best Ship Owner/Operator of the Year and Best Marine Transport Company of the Year. Other awards included MEED’s 2017 award for Transport Company of the Year. – – In coordination with the Saudi Public Transport Authority, Bahri has hoisted the Saudi flag on 31 of its VLCCs and five product carriers.

Secured a firm foothold in other areas of operations such as transporting clean oil and vegetable oil products

Established more commercial representative offices outside the Middle East; the Company aims to establish a presence in Asia over 2018.

APICORP Bahri Oil Shipping Fund

The new quality standard ISO 9001:2015

Focused on improving the volume and utilization of its fleet

has been approved

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