The Board of Directors’ Report to the Shareholders

BOARD OF DIRECTORS’ REPORT TO SHAREHOLDERS

At the outset, GPIC’s Board of Directors would like to extend its sincere congratulations to the Shareholders, the President, members of the Executive Management and all Employees on its 40th Anniversary, during which it has achieved many significant milestones and cemented itself as one of the leading petrochemical companies.

The year 2019, has been marked by many successes at both local and international levels. GPIC achieved +32 million working hours for its workforce and contractors without any lost time accident, exceeding 16 years of safe work since May 2002.

The Board of Directors is delighted to present to the shareholders its annual report for 2019, this year’s annual report includes the achievements made by the company, as well as activities related to the fields of occupational health, safety and the environment and financial, technical, administrative and marketing activities.

On the production front, the company produced 451,429 tons of methanol, 465,917 tons of ammonia, and 727,244 tons of urea. The close cooperation with the marketers, the SABIC Agri-Nutrient Investments Company and the Petrochemical Industries Company of Kuwait contributed to the smooth and continuous export

At the outset, GPIC’s Board of Directors would like to extend its sincere congratulations to the Shareholders, the President, members of the Executive Management and all Employees on its 40 th Anniversary.

of the company’s products. These were loaded onto 62 ships throughout the year. The company won numerous awards during 2019, including two global awards in the field of occupational safety and health from the Royal Society for the Prevention of Accidents (RoSPA) and the IFA 2019 Industry Stewardship Champion Gold Medal granted by the International Fertilizer Association. In addition, the company was chosen to be amongst the distinguished workplaces of 2019 in the field of occupational safety and work environment safety. A number of the company’s notable employees were also honoured. In spite of the challenges faced throughout the year, the Board of Directors are delighted to report, GPIC achieved a net profit totaling $ 33.98 million.

BOARD OF DIRECTORS' REPORT TO SHAREHOLDERS

There is no doubt that GPIC’s status and the respected reputation it enjoys would not have been possible without the grace of God Almighty and the guidance and support the company always takes pleasure in from the wise leadership of Bahrain.

The Board of Directors is pleased to express its sincere thanks and deep gratitude to His Majesty King Hamad bin Isa Al Khalifa, may God protect him, His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister, may God protect and preserve him, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, may God protect and preserve him, for all their support and guidance over the last year. The Board of Directors also extends its thanks and gratitude to the Shareholders, the Bahrain Oil and Gas Holding Company in Bahrain, the SABIC Agri-Nutrient Investments Company and the Petrochemical Industries Company (PIC) of Kuwait for their close cooperation, high professionalism and eagerness to ensure success of the company by providing continuous support to operational and marketing operations.

The Board of Directors also commends the sincere efforts of the company President, members of the Executive Management and all the Employees who have worked as a team and as a family to preserve the company’s position and its profits.