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Bahri Annual Report
The CEO’s Message
Bahri Annual Report
The CEO’s Message
By the grace of Allah, Bahri ends 2016 on a very buoyant note, Bahri’s financial results showed a 6.4% net income increase in comparison to 2015. While the industry’s new normal is depressed rates and low- cost operations, Bahri’s above market performance that was underpinned by a robust strategic realignment, allowed it to weather the storm and to produce above industry results. While 2016 was a year of uncertainty for many maritime players, with a lot of apprehension towards any new investments, Bahri’s ambitious vision, coupled with its financial strength, allowed it to sign a SAR 5.6 billion financing agreement. Although this agreement, which went towards the purchase of 15 VLCC’s, will increase Bahri’s net debt, it will have a positive and fundamental effect on the company’s operational growth, during the short term. In addition, Bahri invested in Big Data, which improved Bahri’s operational and financial efficiency and it will have a transformative effect on the maritime sector during the coming period. Since the 2007 – 2009 global financial crisis and recession, the maritime industry has been suffering and has not been able to adequately respond to the sector’s structural challenges. While some industry players embarked on traditional operational cost-cutting programs, organizational cost-cutting initiatives and modernization of its information
technology systems. They have failed to address the systematic problems that are causing the industry its debilitating distress. On the other hand, Bahri embarked on a different route, a five-year strategic reorganization, whose aim is to leverage the company’s long-term customer relationships, to become a customer-centric company. Learning about its customer’s requirements, also necessitated that it understands the challenges in the market and fundamental changes that are taking place. This undertaking, helped Bahri to identify the tools needed to fulfill the company’s long-term strategic realignment efforts. This approach, laid a firm foundation for Bahri, helping it to build a more resilient customer focused outlook that provides solutions and not commoditized offerings. The sector’s future trends became clearer; invest in quality enhancing tools and platforms, which will become key differentiators and a source of comparative advantage. This in turn will help refine Bahri’s market positioning, a global company that will help connect the region to the world.
The CEO’s Message
Ibrahim Abdulrahman Al-Omar Bahri CEO
While 2016 was a year of uncertainty for many
maritime players, with a lot of apprehension towards any new investments
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