Bahri Annual Report-2016



Bahri Annual Report

The Maritime Sector in 2016

Bahri Annual Report

The Maritime Sector in 2016

exceeded its competitors, which is a testament to its ability to act in the face of market challenges. Thus, placing it firmly on the path to becoming a global leader in logistics and transportation. objects to seamlessly communicate, thus strengthening its pioneering position within the industry and enhance its customer-focused approach that is enhanced by its proactive and predictive information technology platform.

The turbulence that the maritime sector went through in 2016, was due to a major slowdown in global trade, which affected many shipping companies; some of whom reported poor financial performance. On the other hand, Bahri’s financial results embarkedonamoreground-breaking approach. Its ultimate objective is not to provide interim relief and immediate tangible benefits that will dissipate in the face of the industry’s systematic structural challenges. Rather, Bahri is harnessing ‘Big Data’ to allow ships, those inanimate

Despite the turbulent and economic challenges that the maritime industry faced, Bahri stood out and achieved operational and financial results that was above the industry average. This can be attributed to Bahri’s ability to act, adapt, change and diversify. Thus, realizing its ambitions of becoming a global leader in maritime logistics and transportation. Bahri’s 2016 maxim of ‘performance’ and ‘transformation’, was thoroughly demonstrated through its financial and operational results, which allowed it to surpass its competitors, while executing its strategic pivot that aims to pioneer and implement a fundamental and largescale change to the maritime industry. Through its differentiated business model and strategy, which includes a more robust capital asset deployment and utilization, Bahri aims to lead the industry in value creation and enhanced revenue. This will be realized through the development and application of innovative intellectual property- based technology that is predictive, customer-focused and will lead to superior operational efficiency. Fleet size gives maritime companies commercial viability and operational flexibility, which ensures reliability. Yet having a large fleet is also a two-edged sword, as 2016 results showed languishing demand for maritime transport and tremendous financial challenges for many operators. This was the result of the shipping industry confronting the twin challenges of falling growth in demand and over capacity, leading to too many bigger ships chasing far fewer cargo. While some maritime companies saw their earnings and profit margins plummet, Bahri’s 2016 results showed a 6.4% increase on its

return on sales (net profit margin) in comparison to 2015. It managed to achieve these results, by capturing market opportunities during the first half 2016 and relying on long-term partner arrangements that allowed it to realize focused costs efficiency across its operations and without jeopardizing its above industry safety and quality standards. Moreover, given Bahri’s operational ability and financial performance, which outperformed the industry benchmarks, in comparison to its competitors, Bahri managed to expand its operation during 2016. This took place through the acquisition of new vessels, by leveraging its solid position and this is despite the slight drop in its revenue. Bahri’s expansion reflects on its financial strength and differentiated business model, which has allowed it to leverage its assets more efficiently and to absorb the industry’s slowdown. On the other hand, Bahri’s safety and quality standards, which it implements, based international best practice, enhanced its top quartile positioning within the industry. In turn, this ensures that Bahri’s top- of-mind awareness remains strong with its customers, which translates into lower customer acquisition and retention costs and a steadier and more enhanced revenue stream. Moreover, Bahri’s commitment to pro-active safety and continual improvement has led to increased reliability and less downtime; all of which has led to reduced costs and improved resource optimization. Furthermore, instead of adopting short-term tactical and operational cost-cutting initiatives and information technology related modernization programs, Bahri

Bahri’s Performance & Strategic Focus

Bahri’s 2016 Financial Performance & Comparison with 2015

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