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H.M. King Abdullah bin Abdulaziz Al Saud Custodian of the Two Holy Mosques Kingdom of Saudi Arabia
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H.M. King Hamad bin Isa Al Khalifa The King of the Kingdom of Bahrain
H.H. Sheikh Sabah Al Ahmed Al-Jaber Al Sabah Amir of the State of Kuwait
5/18/09 8:47:28 PM
Contents
Chairman’s Message
4
Board of Directors
6
Board of Directors’ Report
7
Executive Management
9
Production Performance
10
Safety, Health and Environment
15
Carbon Dioxide Recovery Project
19
Management of Materials & Contracts
20
Reliability & Proactive Actions
21
Enhancement of Plants
22
Maintenance
23
Marketing
25
Enterprise Risk Management
27
Corporate Governance
28
Training and Development
29
Community Service
30
Official Visits, Social and Sports Events
32
P.O. Box 26730, Manama, Kingdom of Bahrain Tel: (+973) 17 731777, Fax: (+973) 17 731047, E-mail: gpic@gpic.com www.gpic.com
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Annual Report 2008
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Ensuring a better and safer environment
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Chairman’s Message
Despite the financial crisis which has effected the world since the last quarter of 2008, GPIC has managed to solidify its strong financial position. In fact, the company has succeeded to surpass its own past glorious performance and that of its counterparts worldwide. It has also led the way in all financial and managerial aspects, thus affirming its important position as a reliable contributor to the economic prosperity of the Kingdom of Bahrain. The global financial crisis has impacted all financial and industrial sectors, and the petrochemical and fertilizer sectors were not immune from this onslaught. The fourth quarter of 2008 saw the fertilizer market plunge to its lowest ever level. In the short term, this decline is expected to continue, however, the Ammonia and Urea markets are expected to bounce back during the second half of 2009 with Methanol following suit a little later. GPIC is well prepared for such difficult times and has already laid its plans and objectives for 2009 taking into consideration these unusual global economics. By virtue of its sound operational and marketing
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policies, the company has managed to achieve a record profit of US $301 million last year. This great financial performance goes hand in hand with our achievements in health, safety and protection of the environment. The company won a number of awards, most important amongst these is the Robert W. Campbell International Safety, Health and Environment Award from the US National Safety Council and the International Safety Award from the British Safety Council; both being the most prestigious accolades in the US and Europe respectively. The company also won the highest Arab environmental award, Kingdom of Saudi Arabia Best Arab Environmental Management System Award for the second consecutive year. The wise leadership of Bahrain has inaugurated the Kingdom’s economic vision 2030 and paved the way for its implementation through detailed future plans, competent human resources and correct infrastructure services. In line with this vision and the royal directives in this regard, GPIC engaged an international consultant who developed a corporate strategic plan for 2020 for
Annual Report 2008
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Annual Report 2008
I express my gratitude to the executive management and all the employees of GPIC for their loyalty, dedication, teamwork and diligence that have made all our achievements possible
the company, which was duly approved by the Board of Directors. The company also embarked on a comprehensive review of its existing management systems and introduced new ones to establish a solid base in order to facilitate the implementation of these strategic plans. To this end, GPIC issued its corporate governance policy, established an enterprise risk management system and following modern management practices, developed the future Bahrainisation succession plan for the next ten years. As part of its expansion plans and to further enhance environmental aspects, the company has already started executing its Carbon Dioxide Recovery project, acclaimed to be the first of its kind in the region. The year 2008 has been a difficult one. Nevertheless, GPIC has garnered record achievements and many successes. It is indeed the directives of our wise leadership and their continuous follow up that made these successes a reality. On behalf of myself and all GPIC employees, I would like to express my sincere thanks and appreciation to His Majesty King Hamad bin Isa Al Khalifa; the King of the Kingdom of Bahrain, His Highness Sheikh Khalifa bin Salman Al Khalifa; the Prime Minister and His Highness Sheikh Salman bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander, for their superb support and visionary leadership.
I would also like to thank all governmental organisations in the Kingdom of Bahrain and the shareholders namely, the Bahrain National Oil and Gas Authority (NOGA), Saudi Basic Industries Company (SABIC) and Petrochemical Industries Company (PIC) of Kuwait for their continuous support. I also appreciate and commend the great efforts of my colleagues on the Board of Directors who were instrumental in the success of the company. Finally, I express my gratitude to the executive management and all the employees of GPIC for their loyalty, dedication, teamwork and diligence that have made all these achievements possible. I am confident that with their high spirit and positive attitude, they will achieve even more in the future.
Isa bin Ali Al Khalifa, Chairman
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Board of Directors
H.E. Shaikh Isa bin Ali Al Khalifa Chairman
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Mr. Anwar Saeed bin Salama
Mr. Yousef A. Rahman Al Zamel
Deputy Chairman
Managing Director
Mr. Ahmed A.Rahman Al Sayed
Dr. Ahmed Ali Al Sharyan
Mr. Mohammed bin Ali Al Yemni
Board Member
Board Member
Board Member
Mr. Fahad Hamad Al Dubayan
Mr. Hamad Dakheel Al Sebaie
Mr. Sa'ad Mohammed Al Ajmi
Board Member
Board Member
Board Member
Annual Report 2008
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Board of Directors’ Report to the Shareholders For the year ending 31st December, 2008
Operating at high efficiency, strict implementation of preventative and predictive maintenance and local manufacture of spare parts have all contributed towards achieving record net profits, the highest in the company’s history
The Board of Directors is pleased to present its 29th report highlighting the extraordinary honours the company achieved during 2008 in its financial, technical, management and marketing activities. The company continued to focus on maintaining the highest standards in health, safety and security. In this regard, the company set a new record in the number of working hours completed without a lost time accident of 12,698,639 hours for both GPIC employees and contractors; thus maintaining a clean record of no lost time accidents since May 2002. In addition, the company strove relentlessly to effectively implement its plans for operations, maintenance, marketing and the development of human resources and systems. Capital projects, cost optimisation and reduction of expenses were also executed successfully without affecting the plant’s safety and security. Operating at high efficiency levels, strict implementation of preventative and predictive maintenance and local manufacture of spare parts, have all contributed towards achieving record net profits; the highest in the company’s history. GPIC’s net profit rose sharply to US $ 301 million by the end of 2008 compared to US $ 201 million in 2007. Interim dividends were paid to the shareholders in November 2008 totalling US $ 150 million at a rate of US $ 50 million per shareholder. During 2008, the company produced a total of 1,545,488 tonnes of Ammonia, Methanol and Urea. Of these 1,129,028 tonnes were exported on board 72 ships. The remaining quantity, (373,058 tonnes of Ammonia) was used for the
production of Urea. We note here with pride that this production is the highest for all plants since production commenced in 1985. At local, regional and international level, the company enjoyed a very successful year. The most significant achievement was winning the Excellence Award in the Chemical Sector for Occupational Health and Safety from the Royal Society for the Prevention of Accidents (RoSPA), UK. This award is in recognition of the company’s strict adherence to and constant development of its occupational health and safety systems. For the first time GPIC also won the prestigious Robert W. Campbell Award for health, safety and environment following a stringent audit by the US National Safety Council of the company’s operations and safety systems. This award is considered the highest recognition in the field of health and safety in the United States. The company also won the highly acclaimed International Safety Award from the British Safety Council. The company’s continuous endeavours to enhance the environmental protection enabled it to win the Saudi Arabia Environmental Management Award for the second consecutive year. This is considered the most prestigious Arab environmental accolade. Nevertheless, this success will not limit our efforts to improve environmental performance. To this end, the company is in the process of executing a Carbon Dioxide Recovery project, retrofitted to the Methanol plant, that will have both a positive environmental impact and a high return on investment.
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Board of Directors’ Report to the Shareholders For the year ending 31st December, 2008
Business process development continued unabated. GPIC successfully established both a Corporate Governance Policy and Enterprise Risk Management System. Employees’ performance management was also advanced substantially in order to keep pace with future requirements and challenges. In view of the extreme importance of up-todate information technology for the day to day operations of its business, the company seamlessly migrated the majority of its software systems to the Enterprise Resource Planning platform of SAP. This transformation keeps GPIC abreast with world-class organisations utilising state of the art information technology. Development of human resources continued to be at the top of the Board of Directors and executive management’s agendas. The average monthly manpower during the year was 474 employees complemented by 40 trainees. Efforts in this field resulted in a Bahrainisation level of more than 81%. As part of GPIC’s commitment to the community, the environmental awareness programme for school children continued for the seventh successive year. Building on previous years’ experience, the Ministry of Education/GPIC Environmental Research Programme coupled with the GPIC Environmental Award also witnessed impressive success.
a detailed study of future markets and probe opportunities for further expansion. As a result, the Strategic Plan 2020 was formulated. This comprehensive plan will be implemented in the next few years. These major achievements were only made possible as a result of the support and assistance of the wise leadership of the Kingdom of Bahrain. On this occasion, we would like to express our sincere thanks and appreciation to His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, HH Shaikh Khalifa bin Salman Al Khalifa, the Prime Minister and HH Shaikh Salman bin Hamad Al Khalifa, Crown Prince and Deputy Supreme Commander. The Board of Directors would also like to express their gratitude and appreciation to the shareholders namely; the Kingdom of Bahrain represented by the National Oil and Gas Authority (NOGA), Saudi Basic Industries Corporation (SABIC) of Saudi Arabia and Petrochemical Industries Company (PIC) of the State of Kuwait for their unequivocal support to the Company. The Directors also take this opportunity to express their sincere thanks and appreciation to the executive management and note in particular the outstanding efforts of all employees who worked as one team to make the company’s remarkable achievements in 2008 a reality.
As part of its long term vision, the company engaged an international consultant to conduct
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Annual Report 2008
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Executive Management
Standing from left to right
Sitting from left to right
1.
Mr. Zuhair A.Aziz Tawfiqi Public Relations Manager
7.
Mr. Adel Ahmed A.Malik Finance Manager
2.
Mr. Fadhel Malalla Al Ansari Technical Services Manager
8.
Mr. Yusuf Abdulla Al Yaqoub Deputy General Manager for Technical Affairs
3.
Mr. Jehad A.Rahman Taqi Marketing Manager
9.
Mr. Abdulrahman A.Hussain Jawahery General Manager
4.
5.
6.
Mr. Ahmed Ghuloom Ismael Maintenance Manager Mr. Adnan A. Razzaq Al Mahmood Information Technology & Knowledge Manager
10. Mr. Ahmed Abdulla Nuruddin Plants Operation Manager 11. Mr. Yusuf Ebrahim Fakhroo Administration Manager
Mr. Yasser A. Rahim Mohamed Safety & Security Manager 1
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Production Performance
The year 2008 was a milestone year of many achievements for GPIC’s Plants Operation Department. All plants operated in a reliable, safe and efficient manner whilst maintaining the standard quality specifications for all products. The annual production of Ammonia, Methanol, Urea and saleable products for 2008 is tabulated below: Product
Budget tonnes
Actual tonnes
Ammonia
429,600
473,810
10.3 % Higher
Methanol
394,900
410,235
3.9 % Higher
Urea
606,900
661,443
9.0 % Higher
1,431,400
1,545,488
8.0 % Higher
345,933
373,058
7.8 % Higher
1,085,467
1,172,430
8.0 % Higher
Total cumulative production Ammonia consumed for Urea production Total saleable production
Variance
All targets approved by the Board of Directors for production and export were achieved within time. The total combined production (Ammonia + Urea + Methanol) for 2008 was 8.00% above budget.
2008 Milestones
• Ammonia
production, Urea production, saleable products and total products were the highest annual production figures achieved thus far.
• GPIC
loaded the 1,000th Methanol ship (1985 - 2008).
• Highest daily average production rates were 10
achieved for Ammonia and Urea.
• The Integrated Management System (PAS99) was implemented and the first integrated assessment by the external auditor was completed.
• Construction of the Carbon Dioxide Recovery unit commenced in June 2008.
Annual Report 2008
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Production Performance
Ammonia Plant
• It is worthwhile noting that the cumulative • Average daily Ammonia production was 1,314 Ammonia production since 1985 totalled 9.53 million tonnes by end December 2008.
tonnes/ day for operating days.
• Ammonia production for 2008 was the highest annual production achieved so far.
• The annual Ammonia production for 2008 was 110.3% of the budget.
• The Ammonia plant achieved 108% capacity utilisation and 109% utilisation factor in 2008.
•
An on-stream factor of 98% was achieved by the Ammonia plant during 2008.
Cumulative Production - 2008
Month wise Ammonia Production, Budget vs Actual
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Production Performance
Urea Plant
• The cumulative Urea plant production since • The 1998 totalled 6.24 million tonnes by end December 2008.
Urea plant completed 397 days of continuous daily production by end December 2008.
• Urea
production was 109% of the budget for the year 2008.
• Urea production for the year 2008 was the highest annual production achieved so far.
• Average
daily Urea production was 1,807 tonnes/day for operating days.
• The
Urea plant achieved 106% capacity utilisation and 106% utilisation factor in 2008.
• An on-stream factor of 100% was achieved by the Urea plant during 2008. Month wise Urea Production, Actual vs Budget
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Month wise Urea Production, Budget vs Actual
Annual Report 2008
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Production Performance
Methanol Plant
• The
cumulative Methanol plant production since 1985 totalled 9.439 million tonnes by end December 2008.
• Average daily Methanol production was 1,134 tonnes/day for operating days.
• The Methanol plant achieved 104% capacity utilisation and 105% utilisation factor in the year 2008.
• The
on-stream factor achieved by the Methanol plant during 2008 was 99%.
• Methanol
production was 104% of the budget for the year 2008.
Month wise Methanol Production, Budget vs Actual
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Production Performance
Wharf Services
Throughout
the year top quality Ammonia, Methanol and Granular Urea were produced for the premium international markets and every care was taken to maintain product quality at all times. A total of 72 ships which included 10 Ammonia ships, 43 Methanol ships and 19 Urea ships were loaded in 2008. A total of 1.129 million tonnes of product was exported during 2008.
during May 2008 for a routine audit of the Urea handling and loading facilities. They were satisfied with the systems at GPIC. This confirms GPIC’s commitment to ensure that quarantine requirements by the Australian Government are maintained through recognised contamination management strategies throughout the production, storage and export of Granular Urea.
A representative of Australian Quarantine Services and an Australian buyer visited GPIC
Cumulative Sales - Ammonia, Urea, Methanol - 2008
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Annual Report 2008
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Safety, Health & Environment
H.H. Shaikh Khalifa bin Salman Al-Khalifa - The Prime Minister, oversees GPIC achievements in SHE performance
The
year 2008 was an exceptional year for GPIC in terms of Safety, Health and Environment (SHE) Excellence. During the year, GPIC continued to enhance and strengthen its Safety, Health and Environmental (SHE) management systems. These efforts culminated in winning the Chemical Sector Award for a record fifth time from the Royal Society for the Prevention of Accidents (RoSPA) and the Kingdom of Saudi Arabia Environmental Award for Excellence in Environmental Performance. GPIC’s continued enhancement of its SHE systems culminated in winning the 2008 Robert W. Campbell Award from the National Safety Council, USA, to establish a new level of SHE excellence that is unique and unprecedented.
Contractors LTA Performance
This prestigious accolade makes GPIC the only company in the world to have won the Robert W. Campbell Award and the Sir George Earle Trophy, confirming the company’s excellence in the field of health, safety and care for the environment. Furthermore, in 2008 the company reviewed its existing systems and procedures. The aim was to ensure that all pertinent Safety, Health and Environmental systems were updated to international standards where the Behavioural Based Safety Programme (BBS) was fully implemented.
GPIC/ Contractors Combined LTA Performance as 31/12/08
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Safety, Health and Environment
Mr. Yousef bin A. Rahman Al-Zamel presents the KSA Environmental Award to H.E. Sheikh Isa bin Ali Al Khalifa, Chairman of GPIC The following is a list of the significant SHE achievements during 2008: 1. GPIC achieved 7,740,966 person-hours of work or 2,416 continuous work-days without a lost time accident. Similarly, contractors working for GPIC achieved 5,114,855 person-hours of work or 1,953 continuous work-days without a lost time accident. The total combined safe working hours attained was 12,855,821. This outstanding record was achieved through the encouragement of employees, contractors and
Robert W. Campbell International Safety, Health and Environment Award
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visitors to report unsafe conditions and to take pro-active remedial action, thus preventing accidents. In addition, carrying out 45 SHE audits throughout the year ensured that all work areas were controlled in such a way that they remained safe. 2. The company implemented a Behavioural Based Safety Programme (BBS), which aims to increase employee awareness of best safety practices and instill these as inbuilt behaviour patterns. A total of 55 employees were trained to
Mr. Abdulrahman Jawahery, GPIC General Manager receiving the Robert W. Campbell Award from the National Safety Council from the United States of America
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Safety, Health and Environment
Mr. Fadhel Al Ansari, Technical Services Manager receiving the KSA Environmental Award
be auditors and through them it was possible to record 2000 behaviour practices for which root causes and corrective actions were generated. 3. GPIC trained and qualified 42 first-aiders in 2008, bringing the total number of qualified firstaiders in the company to 114, which represents approximately 24% of the total workforce. 4. The company reaffirmed its compliance to local and international occupational health, safety and environmental laws and regulations and was successfully qualified for the integrated management system of Publicly Available Standard (PAS 99) from the British Standards Institute (BSI).
5. The company reviewed its total Process Safety Management (PSM) system and prepared a comprehensive action plan to further strengthen this system in 2009. 6. For the fifth consecutive academic year, GPIC sponsored the Ministry of Education/GPIC Environmental Research Programme for students to win the GPIC Environment Award. A total of 73 projects were presented bringing the total number of projects since the inception of the programme to 424. This is an indication of the progressive success of this unique programme.
KSA Environmental Award
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Safety, Health and Environment
Mr. Abdulrahman Jawahery, GPIC General Manager receiving the Arab CSR Award
7- As a continuation of GPIC’s social responsibility and care for the environment, the 15th batch of sea bream was released from the company’s Fish Farm. The Fish Farm underwent an expansion and now has three basins with a total capacity of 60,000 units. A new consignment of 60,000 fingerlings was introduced to the Fish Farm and will be released by June 2009.
including hosting social programmes, the company won the prestigious award for Arab Corporate Social Responsibility (CSR) from the United Arab Emirates.
Due to the above initiative and further to the commitment of the company to ensure the welfare of its employees and their families,
Corporate Social Responsibility Award
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Annual Report 2008
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Carbon Dioxide Recovery Project
H. E. Mr. Yousef Al Zamel inaugurating the CDR project on 27th August 2008
GPIC
is one of the first petrochemical companies in the Middle East to embark on a 450 tonnes/day Carbon Dioxide Recovery (CDR) Project, to cut down Green House Gas (GHG) emissions and improve overall efficiency of resources by having additional production of Methanol and Urea in its complex. GPIC awarded the contract to set up the CDR plant to Mitsubishi Heavy Industries (MHI), Japan for the technology licence, and to Tecnimont, Italy for the Engineering, Procurement and Construction (EPC) of the plant. The contracts were signed on 25 October 2007 and the CDR plant construction work was inaugurated by H.E. Mr. Yousef Al Zamel, GPIC Managing Director, on 27 August 2008. As this project is recognised as a carbon emission reduction project, GPIC signed an agreement with Abu Dhabi Future Energy Company (MASDAR) to register the CDR Project under Clean Development Mechanism (CDM) in June 2008, to turn the emission reductions into tradable assets or “Certified Emission Reductions” CERs.
closely monitors the various activities related to project execution by the EPC contractor. The team reviews and approves the contractor’s detailed design and engineering documents, hazop studies, material requisitions and recommended spare parts, as well as supervising procurement of equipment, construction works and witnessing factory acceptance tests. By the end of 2008 six months had elapsed since the construction activities started. The main activities carried out during this period were completion of all piling works, column foundations, structure foundations, vent stack and tank foundations, as well as erecting the steel structures. The three columns for the CDR plant were transported from Malaysia to Bahrain and will be installed during January 2009. The actual progress achieved to 31 December 2008 was 96.5% of Engineering, 65% of procurement, 9.5% of construction and the project overall progress achieved was 50%. Project pre-commissioning and commissioning activities are planned to commence in the fourth quarter of 2009.
The project is scheduled as a fast track project, fully managed by a GPIC Project Team. This team
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Management of Materials & Contracts
During
2008, GPIC received materials with an approximate value of BD 14.5 million, which was required to support the maintenance and reliability of plant equipment and cater for all operational requirements. The warehouse service level was more than 99% throughout the year indicating ready availability of materials required by the plants. It is also a clear indication of the close and effective coordination with suppliers and contractors, both local and foreign.
system is fully functional GPIC is establishing an e-procurement and bar coding system for its Materials Management. This project is progressing well and is expected to be completed by midyear 2009.
In order to enhance systems and procedures GPIC has implemented an ERM software solution of SAP, achieving better control and faster processing of spare part procurement and supplier payments. Now that the SAP
Total RBI vs Completed
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Reliability & Proactive Actions
As part of their proactive approach to improved plant reliability, GPIC has adopted the following techniques: Risk Based Inspection (RBI) is a risk-based approach to the inspection of plant assets. This scientific and systematic approach analyses the likelihood and the consequences of failure and develops action plans to enhance overall safety and reliability. RBI assists the company to select cost effective and appropriate maintenance and inspection tasks and techniques, to optimise resources and to shift from a reactive to a proactive reliability regime. To date the Methanol plant study has been completed whilst 73% of the Ammonia plant, 49% of the Urea plant and 23% of the Utilities plant have been examined. The objective is to complete the RBI study of all static equipment by 2012.
Root cause failure analysis is a problem-solving technique aimed at identifying the basic cause of an event in order to improve or eliminate it and/or to minimise repetition of the problems associated with the event. In 2008 GPIC trained more than 15 employees in root cause failure analysis techniques utilising the latest investigation programme.
RCFA Classification by issue raised
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Enhancement of Plants
To
meet its vision of being a global and dynamic company recognised for its excellence, GPIC continued to maintain and improve the safe and reliable performance of its plants and facilities. To achieve this objective, Capital Expenditure (Capex) Projects worth BD 12 Million were undertaken and 105 modifications were engineered and processed during 2008. The Capital Projects included procurement of an Omegabond Urea Stripper, Coils for the Waste Heat Recovery Sections of the Ammonia and Methanol Plants, upgrading of HIMA Motor Control System, upgrading of the Demineralisation Plant Control System, and refurbishment of AC ducts, lighting and ceilings in buildings, as well as refurbishment of the underground Potable Water System.
Process Hazard Assessments were carried out to ensure the safety, integrity and reliability of the plants in relation to the above jobs. Continuous monitoring of the energy consumption and efficiency of process equipment was done to ensure optimal use of resources and protection of the environment.
Effective Management of Change (MOC) completed modification
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Maintenance
The
Maintenance Department continued its consistent efforts to enhance safety and reliability throughout the complex, placing special emphasis on the process plants. Accordingly, objectives and key performance indicators for the department were set early in the year and monitored closely every quarter, resulting in the achievement of nearly all objectives. To ensure adequacy and applicability of all quality documents, the department undertook a major review of all standard operating procedures, standing instructions, checklists and guidelines. A number of new quality documents were also introduced.
Throughout the year the system was finetuned and all concerned personnel were given appropriate training. The department also reviewed the Rolling 10 Year Turnaround Plan taking into consideration the outcome of the 2007 turnaround findings, recommendations and the company’s overall strategic plan. The department also completed a large number of tasks as part of its drive towards enhancement of reliability. These included:
Migration from the old AMSOFT Computerised Maintenance Management System to the current SAP platform was carried out successfully.
a) 30 Modifications b) 5686 Preventive Maintenance Work Orders c) 2373 Corrective Maintenance Work Orders
Maintenance Work Orders
Maintenance Budget Utilization
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Maintenance
Some of the major jobs executed were: 1) Outer Gate Traffic Flow and Security Improvement. 2) Underground Potable Water Piping Replacement. 3) Replacement of Methanol Condensers, E 1505 A/B. 4) Replacement of Ammonia Reactor (R-0801) Outlet Piping up to Waste Heat Boiler (E 0801) Inlet. 5) T 4202: Tank Refurbishment including the Replacement of the Rubber Lining.
total saving to more than US$ 4 Million since inception of the programme in 2001. Training and development of personnel continued to be at the top of the Maintenance Department’s agenda. In addition to familiarising all maintenance staff with the company’s Corporate Objectives and the department’s own objectives, 90% of all Maintenance staff attended training. The training rate achieved was 46.7 hours per employee.
In-house spare parts manufacture continued unabated with strict quality control and resulted in a saving of nearly US$ 448,000, taking the
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Marketing
The
combined total sales of Ammonia, Methanol and Urea amounted to 1,129,028 tonnes for 2008. This total was made up of 100,174 tonnes of Ammonia, 405,815 tonnes of Methanol and 623,039 tonnes of Granular Urea, while 1,233 tonnes of Granular Urea were sold in the local market. These quantities were safely exported on schedule and without incurring demurrage charges or a single customer complaint.
In 2008, the company achieved its export targets as planned with remarkable returns on sale of its products. Moreover, the company has also enhanced its exports to the USA with exports of 425,542 tonnes, representing 37% of total exports.
Ammonia Exports By Region - 2008
Urea Exports By Region - 2008
Total = 100,174
Total = 623,039
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Marketing
The cumulative export since export operations started totalled 21.7 million tonnes, comprising 6 million tonnes of Ammonia, 9.5 million tonnes of Methanol and 6.2 million tonnes of Urea.
Department and the company’s marketers, PIC of Kuwait for Ammonia and Granular Urea and SABIC of Saudi Arabia for Methanol. This coordination has led to optimum returns to GPIC from these sales.
These figures reflect the excellent coordination and cooperation between the GPIC Marketing
GPIC Exports By Region - 2008 Total = 1,129,028
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Methanol Exports By Region - 2008 Total = 405,815
Annual Report 2008
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Enterprise Risk Management
In 2008,
following a directive from the GPIC Board of Directors, GPIC completed a formal Enterprise Risk Management (ERM) programme based on the COSO model, Committee of Sponsoring Organizations of the Treadway Commission. The ERM programme involved identification of key risks applicable to GPIC at the enterprise level, evaluating and assessing them, and ensuring appropriate mitigation measures are in place to address them. Enterprise Risks were broadly categorised under the following headings: Strategic, Operational, Business, Markets and Finance related, Reputation, People, Information and Data, Regulatory compliance.
1) Undertake assessment to identify significant risks and prioritise them. 2) Measure the risk exposure levels to the risk appetite based in the tolerance limits. 3) Analyse the sources of each of these risks to have in place appropriate controls, preventive and corrective measures. 4) Undertake audit reviews to ensure that the preventive measures continue to be in place and the planned corrective measures have been undertaken in line with the target dates. 5) Update the ERM Register and periodically report the risk status and trends.
An internal ERM Committee was formed responsible to ensure that a robust mechanism is in place to:
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Corporate Governance
The GPIC Corporate Governance Code was formally adopted by the Board of Directors in 2008. It is the application of best management practices, compliance of law and adherence to ethical practices to achieve the corporate Mission and Vision while enhancing shareholders’ value.
The GPIC Corporate Governance code clearly delineates the responsibilities and authority entrusted among the various constituents of the organisation, including the Shareholders, Chairman and Managing Director, Board of Directors, Executive Management and the employees.
The company’s essential character revolves round its core values which are based on the concepts of Excellence, Integrity and Fairness, Respect, Transparency, Safety, Professionalism, Creativity, Social Responsibility and Teamwork.
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Training and Development
The
training and development of Bahraini employees remain a top priority of GPIC’s management. The aim of the training policy is comprehensive development of Bahrainis through training courses designed and conducted by the Company’s Training Centre. Courses are aimed at both new recruits as well as the continuous development of experienced employees. These courses include theoretical and practical training and are conducted in-house, locally or abroad. The manpower during 2008 totalled 474 plus 39 trainees. The cumulative number of trainees who have completed their training since inception stands at 397, out of these 80 are engineers. Trainees are appointed in various positions such as Plant Operators, Technicians, Chemists, Engineers and Supervisors after successful completion of the comprehensive training programme. By the end of 2008 the overall Bahrainisation level achieved in the company was 81.23%. In addition to conducting training courses for new graduates, the Training Centre also supervises the development of 9 staff members to prepare them for occupying senior supervisory positions in the future. The Training Centre conducted a number of training and development programmes to meet
the company’s needs. These comprised 28 in-house courses attended by 381 employees, 99 training courses plus a conference held in Bahrain and attended by 496 employees as well as 97 training courses outside Bahrain attended by 249 employees. This means a total of 224 training courses were attended by 1126 employees and trainees. This training is in addition to the periodic awareness and enhancement programmes with regard to health and safety, environment and quality held for all the new employees. GPIC established a scholarship programme to encourage employees to complete their university studies. This programme also includes the support of outstanding university students and the award of scholarships to employees’ children. During 2008 the programmes for the e-learning centre were updated to include 27 training courses in various subjects including communication skills, financial resources management, self-development skills, security, health and environment courses, computer applications, leadership skills and project management skills. Around 2000 training-hours were completed by attendees. In November 2008, GPIC won an award for the best e-learning centre in the Middle East presented by SkillSoft based on the number of e-learning programmes completed and efficient use of e-learning technology.
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Community Service
H.E. Shaikh Isa bin Ali Al Khalifa Chairman
In accordance with the directives of H.E. Shaikh Isa bin Ali Al Khalifa, Advisor to His Highness the Prime Minister for Industrial and Oil Affairs and GPIC Chairman, and as part of the company’s policy of supporting the Bahraini community through donations to local, charitable and professional societies in the Kingdom, a number of examples of donations made to various organisations and charities during 2008 have been selected for publication in this report.
iƒ≤dG ÜÉ©d C’ »æjôëÑdG OÉ–’G
Ö∏≤∏d áØ«∏N øH óªfi ï«°ûdG õcôe
Bahrain Athletics Association
Shaikh Mohamed bin Khalifa Cardiac Centre
ájôëÑdG IhÌdG ájɪ◊ áeÉ©dG áÄ«¡dG ájô£ØdG IÉ«◊Gh áÄ«ÑdGh Public Commission for the Protection of Marine Resources, Environment and Wildlife
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á«μ∏ŸG ájÒÿG á«©ª÷G
øjôëÑdG ∫ɪY äÉHÉ≤æd ΩÉ©dG OÉ–E’G
≥FGóë∏d ‹hódG øjôëÑdG ¢Vô©e
Royal Charity Organisation
General Federation of Bahrain Trade Union
Bahrain International Garden Show
…ÒÿG IQƒ◊G ¥hóæ°U
äGQójƒædG …OÉf
…ÒÿG IΰS ¥hóæ°U
Al Hoora Charity Fund
Al Nowaidrat Club
Sitra Charity Fund
Annual Report 2008
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™`` `ª` à` é`ŸG á`` `eó`` N AGQRƒdG ¢ù∏ée ¢ù«FQ ƒª°ùdG ÖMÉ°U QÉ°ûà°ùe ,áØ«∏N ∫BG »∏Y øH ≈°ù«Y ï«°ûdG IOÉ©°ùdG ÖMÉ°U äÉ¡«Lƒàd áHÉéà°SG ™ªàéªdG ºYO »a É¡JÉ¡LƒJh ácô°ûdG á°SÉ«°S øe Ék bÓ£fE Gh ,"∂Ñ«L" IQGOE G ¢ù∏ée ¢ù«FQh RɨdGh §ØædG ¿ƒÄ°ûd øe ójó©dG ºjó≤àH ,É¡JOÉY ≈∏Y Ék jôLh Ω2008 ΩÉ©dG ∫ÓN ácô°ûdG âeÉb ,áØ∏àîªdG ¬JÉ°ù°SDƒe ôÑY »æjôëÑdG .áμ∏ªªdÉH á«æ¡ªdGh ájô«îdG äÉ«©ªédG ≈dE G äÉYôÑàdG áØ«∏N ∫BG »∏Y øH ≈°ù«Y ï«°ûdG ‹É©e IQGO’E G ¢ù∏› ¢ù«FQ .ôjô≤àdG Gòg »a Égô°ûæd äÉYôÑàdG √òg øe êPɪf QÉ«àNE G ºJ óbh
»æjôëÑdG ôªM C’G ∫Ó¡dG á«©ªL
‹hódG ∑Gôë∏d øjôëÑdG õcôe
IQó≤dG äÉbÉÑ°Sh á«°ShôØ∏d »æjôëÑdG »μ∏ŸG OÉ–E’G
Bahrain Red Crescent Society
Bahrain Mobility International
Bahrain Royal Equestrian & Endurance Federation
™«ªé∏d á°VÉjô∏d ‹hódG OÉ–E’G
á«μ∏ŸG á«Ñ£dG äÉeóÿG
á«æjôëÑdG AÉÑW C’G á«©ªL
International Sport for All Association
Royal Medical Services
Bahrain Medical Society
…ÒÿG äGQójƒædG ¥hóæ°U
äÉæÑ∏d ájOGóYE’G IΰS á°SQóe
ÚæÑ∏d á«FGóàHE’G ÒeÉ©ŸG á°SQóe
Al Nowaidrat Charity Fund
Sitra Intermediate Girls School
Ma’ameer Primary Boy’s School
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Official Visits, Social and Sports Events
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ácô°ûdG Qhõj ÊÉ£jÈdG ÒØ°ùdG IOÉ©°S
ácô°ûdG ™ª› Qhõj »μjôe C’G ÒØ°ùdG IOÉ©°S
H.E. British Ambassador visits GPIC
H.E. US Ambassador visits GPIC
ácô°ûdG Qhõj ÊÉHÉ«dG ÒØ°ùdG IOÉ©°S
áÄ«ÑdGh áë°üdGh áeÓ°ùdG ´ƒÑ°SCÉH ∫ÉØàME’G
H.E. Japanese Ambassador visits GPIC
Safety, Health & Environment Week Celebration
»Ø«°üdG äÉjhɪ«chÎÑdG èeÉfôH
Ω2008-2007 »°SGQódG ΩÉ©∏d ÚbƒØàŸG Ú∏eÉ©dG AÉæHCG ΩôμJ äÉjhɪ«chÎÑdG
GPIC Summer Programme
GPIC Honours Outstanding Employees’ Children for the year 2007/08
Annual Report 2008
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á«°VÉjôdGh á«YɪàLE’G ᣰûf C’Gh ᫪°SôdG äGQÉjõdG
ácô°ûdG ¢ù«°SCÉJ ≈∏Y ¿hô°û©dGh á©°SÉàdG iôcòdÉH …ƒæ°ùdG ∫ÉØàM’G GPIC Marks its 29th Anniversary
á«LQÉÿG ¿hDƒ°û∏d ádhódG ôjRh IOÉ©°S ácô°ûdG Qhõj πª©dG ¥hóæ°U IQGOE G ¢ù∏› ¢ù«FQ H.E. Minister of State for Foreign Affairs and Labour Fund Chairman Visits GPIC
ácô°ûdG Qhõj äÉjhɪ«chÎÑ∏d ô£b ácô°T ΩÉY ôjóe
ácô°ûdG ™ªéŸ ¢SQGóŸG ióME G IQÉjR
QAPCO General Manager Visits GPIC
A School visit to GPIC Complex
áÄ«ÑdGh áë°üdGh áeÓ°ùdG Ωƒ«d …ƒæ°ùdG »∏FÉ©dG πØ◊G
ácô°û∏d …ƒæ°ùdG º«îŸG
Safety, Health & Environment Family Evening
Annual Camping
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