23
22
Bahri Annual Report
2016 Business Units Performance & Achievements
Bahri Annual Report
2016 Business Units Performance & Achievements
Breakdown of Total VLCC Voyages by Route during 2016 compared to 2015
West African markets, in addition to it Asian clients, such as PetroChina, UNIPEC, Reliance, Essar and Petrobras. Concurrently, Bahri Oil also broadened its customer base, by adding new customers during 2016, which included CPC, HMEL, Total and HOB. This customer base expansion will further strengthen Bahri Oil’s position and sustain its position as the VLCC operator with the highest fleet utilization rate in the market, thus, allowing it to continue to outperform its competitors.
reached with S-Oil to increase its monthly volumes carried for S-Oil from 2 - 3 cargoes per month, to 4 - 5 cargoes per month. This is in addition to securing more volumes, thus ensuring employment for two additional VLCCs with guaranteed revenues, which, in turn, improves the diversification of Bahri’s trade routes. Furthermore, this is equivalent to the full employment of 5 – 7 VLCCs annually. Furthermore, Bahri Oil continued to strengthen its business relationship with its existing customers from the Caribbean and
Type of Operation
2015
2016
No. of Voyages % of Total
No. of Voyages % of Total
Arabian Gulf – USA
123
31%
132
30%
Arabian Gulf – Ain Sukhna
60
15%
37
8%
Arabian Gulf – Yanbu
38
9%
67
15%
Arabian Gulf – Onsan (S-Oil)
12
3%
37
8%
Arabian Gulf – Okinawa
6
1%
4
1%
Arabian Gulf – Rotterdam
0
0%
2015 – 2016 Comparative Breakdown of Bahri’s VLCC voyages
5
1%
Yanbu – Ain Sukhna
55
14%
72
16%
Type of Operation
2015
2016
Sidi Kerir – Rotterdam
38
9%
31
7%
No. of VLCC’s No. of Voyages No. of VLCC’s No. of Voyages
Caribbean/WAF – Asia/Far East
70
17%
55
13%
VLCC’s operating on the COA and spot market
31
247
35
296
Total Voyages
402
440
VLCC’s operating on time charter agreements
0
0
*1
0
VLCC’s voyage chartered from market
-
155
-
144
for Bahri Oil, as the number of VLCC voyages went up from 55 to 72 voyages, a 23% increase, between 2015 to 2016. Underpinning Bahri Oil’s 2016 performance is its adoption and implementation of an “NPS” system, where a dedicated third-party team approaches Bahr’s customers and solicits their feedback independently. All areas of concern or potential business collaboration is addressed, through an internally rigorous process, where customer satisfaction is closely monitored, evaluated and addressed. In addition, Bahri Oil was issued with a full-term ISO 9001:2008 Management Certifications following its DNV/GL compliance audit. Moreover, preparations are underway for upgrade to the new ISO 9001:2015 standard for 2017. Moreover, the safety, quality and reliability of the services provided to Bahri Oil customers have been monitored, with no major incidents or issues noted and no complaints received.
Furthermore, converting the oil glut, which was responsible for the loss of market impetus, into an opportunity, Bahri Oil agreed with Saudi ARAMCO to potentially increase the volume of oil deliveries to its clients in the East. In return for a 2.5% discount on the additional deliveries to the East, if the total volume exceeds the 2015 levels. While this supports route diversification drive, it is also in line with Bahri’s strategic goal of being Saudi ARAMCO’s shipping partner. On the other hand, the Arabian Gulf to Yanbu route registered an increase of 67 VLCC voyages in 2016, in comparison to 2015, when only 38 voyages took place.While theArabian Gulf to Onsan route registered a more than three-fold increase in the total number of voyages between 2015 to 2016. The Arabian Gulf to Rotterdam, which did not register any voyages in 2015, saw Bahri haul 10 million barrels through 5 VLCC voyages during 2016. In addition, Yanbu, Ain Sukhna was another high-performance route,
Total Voyages
402
440
* Ramlah (floating storage)
overall breakdown reflects Bahri’s strong performance, despite the market’s loss of impetus during the second half of 2016. The aggregate number of VLCC voyages went up from 402 in 2015 to 440 in 2016.
Overall, the above table, which provides a breakdown of Bahri’s total VLCC voyages by route shows a healthy upward trend with the majority of its routes and a slight decrease with other routes for 2016, in comparison to 2015. However, the
Bahri Oil 2015 & 2016 VLCC Voyages Comparison
500 450 400 350 300 250 200 150 100 50 0
440
402
132
123
67
72
70
60
55
55
38
38
37
37
31
12
6
4
0
5
Araian Gulf USA
Araian Gulf Ain Sukhna
Araian Gulf Yanbu
Araian Gulf Onsan (S-Oil)
Araian Gulf Okinawa
Araian Gulf Rotterdam
Yanbu Ain Sukhna
Sidi Kerir Rotterdam
Caribbean/WAF Asia/Far East
Total Voyages
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