Annual Report 2017
56
57
3
Strategic Business Units
VLCC voyages based on itineraries for 2016 – 2017
Bahri Oil 1
150
Fleet expansion enhances efficiency, customer focus
120
Bahri Oil is the world’s largest crude oil transporter with an owned fleet of 41 vessels and annual dead weight tonnage (DWT) capacity of nearly 13 million tonnes as of December 31, 2017 and is still growing. The quality of our vessels and our services, along with our competitive pricing, make us the natural partner of choice for our customers, the top oil producers in the world. Though 2017 was a challenging year because of fluctuations and uncertainties in the Our fleet growth will continue well into 2018. HSHI will deliver five more newly built VLCCs during the first half of 2018, bringing the total number of our owned vessels to 46, strengthening Bahri’s position as the largest independent VLCC owner and operator in the world. These vessels will further improve Bahri’s fleet efficiency and financial performance by optimizing bunker consumption. The fleet expansion also serves our diversification strategy, enabling us to grow our customer base from 2017 and add new geographic routes to Bahir Oil’s fleet More growth in 2018
crude oil market, Bahri Oil continued to maintain its leadership position in the global VLCC market in terms of volume. The challenges of the year were primarily triggered by the cuts in oil production and the continued expansion of the global trading fleet. We added five newly built VLCCs to our fleet in 2017, taking the number of our owned vessels to 41. The new vessels boast state-of-the-art quality in terms of advanced marine technology and significant reduction in fuel consumption. Hyundai Samho our portfolio. We won two new and reputable customers in the Atlantic market during the year. Our existing customers also benefited from the availability of Bahri vessels in the US Gulf to take advantage of the US crude oil export program. Our vessels lifted 10 backhaul cargoes from the US Gulf during the year. Bahri performed a total of 387 voyages during the year, transporting 785.5 million barrels of oil around the world. Cargoes originating from the Arabian Gulf comprised 63
Heavy Industries (HSHI) built the ships at the company’s ship building base in South Korea. The introduction of additional new ships helped us to improve our fleet’s operations efficiency, delivering a lower average bunker consumption rate and offering a greater degree of optimization opportunities. An expanded fleet also enabled us to reduce our dependence on spot market tonnage, resulting in improved margins.
90
60
30
0
The Arabian Gulf The US
The Arabian Gulf Yanbu
The Arabian Gulf Ain Sukhna
Yanbu Ain Sukhna
Ain Sukhna Yanbu
The Arabian Gulf Okinawa
Sidi Kerir Rotterdam
The Arabian Gulf Rotterdam
The Arabian Gulf Onsan
Yanbu Onsan
The Caribbean India
The Caribbean Singapore
The Caribbean China
West Africa China
UKC Singapore
percent of the total voyages while the balance originated from the Red Sea, Mediterranean, West Africa, Brazil, US Gulf and Caribbean regions. We also continued our strategic efforts to increase our voyages to the East. Bahri undertook 39 voyages for Charter Ownership Agreement Customers (COA) during the year.
Comparison of the number and percentage of VLCC’s voyages in 2016 - 2017
Operation Type
2016
2017
No. of VLCCs
No. of VLCCs
Ras Tanura to the USA Ras Tanura to Yanbu Ras Tanura to Ain Sukhna Yanbu to Ain Sukhna Ain Sukhna to Yanbu Ras Tanura to Okinawa, Japan Sidi Kerir to Rotterdam Ras Tanura to Rotterdam Ras Tanura to Onsan, South Korea Yanbu to Onsan, South Korea The Caribbean to India The Caribbean to Singapore The Caribbean to China
132
84 77 46 58
64 39 71
387 785.5 63% 37% 39% voyages undertaken during the year million oil barrels of voyages were from the following voyages were made from the
1 4
-
3
32
25
of voyages were oil shipments from Ras Tanura
5
-
33
27 10 27 20 11 6
transported around the world
4
regions: The Red Sea The Mediterranean Sea West Africa Brazil The American Gulf Coast The Caribbean
Arabian Gulf and the Red Sea to the Far East
24
4
17 10
West Africa to China
The North Sea (Rotterdam) to Singapore
2
1
Total Voyages
442
395
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