14. Four old general cargo vessels were sold for scrap, and replaced with new ships, making a net gain of SAR 75.5 million from the sale of these vessels. 15. Bahri signed a Murabaha agreement with Public Investment Fund (PIF), under which a portion of the cost of building two general cargo vessels, whose building contracts were signed in 2011 were financed. The financing amount totaled approximately SAR 450 million and is to be paid through 10 years on delivery of the vessels. 16. Bahri participated in many specialized international exhibitions in the area of marine transportation, showcasing its services, and highlighting it’s corporate social responsibility activities through media coverage. 17. During the last three years, Bahri received many awards from well-known global entities with regards to its performance and global footprint. Finally, on behalf of myself and my colleagues on the Board of Directors, I would like to extend, my thanks and gratitude to the Government of Saudi Arabia, the Custodian of the Two Holy Mosques, the Crown Prince and the Second Deputy. I would like to thank the former members of the Board of Directors, our Shareholders and our clients for their continued support and efforts as well as the Executive Management and employees for their commitment to achieve the objectives of the Company’s shareholders and clients. Wishing you all success and may Allah help you. May the peace, mercy and blessings of Allah be upon you. Abdulrahman Mohammed AlMofadhi Chairman
6. BDB signed a Murabaha agreement with Bank AlBilad to finance a portion of the cost of building five dry bulk ships. The finance amount was SAR 420 million. 7. Bahri was awarded the contract with the Ministry of Defense (MOD) to ship military equipment for three years for a total amount of SAR 230 million. Throughout the previous contract period, the Company provided distinguished services to the Ministry of Defense; thus, the said contract was extended, for a period of five years until 2019 for a total of SAR 383 million. Under the new contract, Bahri will continue to act as the official provider of a full range of sea, air and land freight to the Divisions of the Armed Forces at the Ministry of Defense. 8. Bahri paid significant attention to information technology in line with its strategic plan by adopting and implementing a group of the latest technological solutions in accordance with the best international standards and procedures approved in this domain. 9. Bahri launched its new corporate brand focusing on its trade name “Bahri” in order to reflect the company’s new global identity. 10. Bahri realigned the salaries and bonuses of its staff based on key performance indicators (KPIs), motivating its employees to exert their efforts through the provision of internal and external training courses, and granting more incentives and compensations based on performance. 11. NCC signed a five year time charter agreement with a subsidiary of Saudi Basic Industries Corporation (SABIC) totaling SAR 480 million for three chemical tankers with the option of further extending the agreement for five years. 12. Bahri received seven chemical tankers built by NCC including Fajr, one of the largest and most highly sophisticated chemical tankers with a dead weight tonnage DWT of 75,000. 13. Bahri signed contracts to build six general cargo vessels with Hyundai Mipo Dockyard to be delivered during 2013 and 2014. Four carriers were delivered, and the remaining vessels will be delivered during the first half of 2014.
1. Signing conclusive and binding agreements with Saudi Arabian Oil Company (Saudi Aramco), under which the fleet and operations of Vela International Marine Limited, a wholly owned subsidiary of Saudi Aramco, were merged with Bahri’s fleet and operations. The agreement stipulated that the ownership of Vela’s fleet containing 14 very large crude oil carriers (VLCCs), one very large crude carrier used as a floating storage carrier and five product tankers, will be fully transferred to Bahri who will be the exclusive provider of VLCC crude oil shipping services to Saudi Aramco for the delivery of crude oil sold by Saudi Aramco on a delivered basis. The agreement included interim arrangements to protect freight rates throughout 2013 until the merger is finalized. Such interim arrangements are beneficial to the Company as they protect them against the decline in freight rates of crude oil. 2. Signing a memorandum of understanding (MoU) with Saudi Aramco and Singapore’s Sembcorp Marine Ltd. to develop a feasibility study to build a maritime yard in the Kingdom of Saudi Arabia (KSA). 3. Acquisition of the share of Norwegian Odfjell SE in NCC Odfjell Chemical Tankers (NOCT) by National Chemical Carriers Ltd. Co. (NCC) and the amicable dissolution of the partnership in the pool containing 18 chemical carriers. Under this acquisition, NCC became the sole owner of NOCT, previously owned by both companies and will fully manage its commercial operations. 4. Establishing a new business unit under the name “Gas and Offshore Services Sector” in order to penetrate offshore service business activities, a promising sector in the Middle East. 5. The commencement of new business activity in dry bulk cargo transportation through Bahri Dry Bulk Company LLC (BDB), a subsidiary which is owned 60% by Bahri and 40% by Arabian Agricultural Services Company (ARASCO). BDB time chartered five bulk carriers and re- chartered them to ARASCO, generating a rewarding profit. Moreover, BDB signed contracts with one of the world’s leading shipyards to build five Kamsarmax ships for dry bulk transportation to replace the chartered ships during 2013 and 2014. The first ship, named “Bahri ARASCO” was delivered, and the remaining ships will be delivered during the first half of 2014.
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