Bahri Annual Report-2017

Annual Report 2017

62

63

Bahri Chemicals 2 Strategic Business Units 3

Fleet growth and optimization deliver stronger performance

With 36 commercially managed IMO2 MR vessels, Bahri Chemicals is now the largest global operator in this segment. Bahri Chemicals provides maritime transport of liquid bulk chemicals from the Middle East to the West and to the East; our operations also include the shipping of Clean Petroleum Products (CPP) and vegetable oils. Bahri Chemicals achieved dramatic growth in 2017, with the number of vessels in the fleet under commercial management growing from 24 to 36.

The increase in the number of ships, achieved through our robust and long-standing partnerships, led to a substantial increase in volume and revenue during the year. Our performance, relative to our peers, continued to improve in 2017 due to a strong focus on efficient execution of our long-term trading strategy. A significant increase in bunker prices, however, led to an increasingly challenging environment during the year. This increase in bunker prices, combined with a

steady stream of new vessels entering the market and affecting the supply- demand dynamics, represented the main challenges during the year. These challenges were particularly felt in the CPP and vegetable oil segments, which have historically been more volatile. These segments, however, continue to offer significant potential for us to grow our revenue stream when the market turnaround happens after absorption of the recent fleet growth.

36 Tankers

23 Tankers

14 Tankers

12 Tankers

2017

2016

2015

2014

Bahir Chemicals Fleet

13 13 IMO II MR coated chemical tankers Capacity: 46 k DWT Operating under commercial management

16 IMO II MR coated chemical tankers Capacity: 46 k DWT Operating in the Instant Fleet

6 IMO II MR coated chemical tankers Capacity: 46 k DWT Chartered for SABIC

5 MR product tankers Capacity: 50 k DWT Chartered for Saudi Aramco

3 Stainless steel high- specification tankers

1 IMO LR chemical waste tanker belonging to the International Maritime Organization Capacity: 83 k DWT Chartered for SABIC

2017 Bahri Chemicals Fleet

36 commercially managed tankers

tankers owned by Bahri 31

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