Oman Shipping Going Global with Tankers Business. Tarik Al Junaidi CEO

Transcription

1 Oman Shipping Going Global with Tankers Business Tarik Al Junaidi CEO

2 Content Company Profile Market Analysis (Product Tankers & LNG) OSC s Business Activities (Opportunities & Challenges)

3 Corporate Structure OSC group and its subsidiaries Owning vessels related SPCs Oman Shipping Company Owned by OGLG, OOC & ORC Oman Charter Company (OCC) Oman Ship Management Company (OSMC) Oman Container Lines (OCL) Ship chartering activities & broking of own & 3rd party ships Technical Ship management of own and 3rd party ships Management of Container & General Cargo Business

4 Vessels Growing fleet 60 OSC s Fleet Growth ( )

5 Diversified fleet Oil & Gas Dry Bulk Others

6 Market Update

7 Product Tankers Market Supply-Demand Dynamics Source: Clarkson's Research

8 Product Tankers Market (2017) Oversupply continues Product Tanker market conditions weakened compared to 2016 with continued oversupply Demand factors (+) Increased exports from the US and the Middle East (+) Short lived positive impact of Hurricane Harvey disruptions (+) Growing Latin America imports, intra-asian and Middle East- Asia products trade is expected to support growth Supply 4.5% Growth Supply factors (-) Contracting activities increased in 2017 compared to 2016, (+) Expansion is expected to ease to less than 3% in 2018 as deliveries slow further which will improve earnings in the future Demand 3.7 % Growth Source: Clarkson's Research

9 Product Tankers Market Increased refining capacity % Growth 2017: 1.5% 2018: 2.1% 2019: 4.2% Source: Clarkson's Research

10 LNG Trade Shift towards spot business The share of short-term LNG trade has increased Between 2005 and 2015, the share of LNG traded on contracts of four years or less rose from 12% to 29% The growth in the spot and shortterm trade is projected to continue, as low global gas prices encourage long-term buyers to pick up cheaper cargoes, and trading houses seek arbitrage opportunities

11 LNG Shipping Market Shift towards spot business Oversupply and low spot charter rates prevalent themes Low energy price environment continues to affect global LNG projects development, with further delays and cancellations to projects Challenges on ship owners: Lower earnings LNG shipping-technology revolution in propulsion, fuel efficiency and cargo containment Cargo operations for spot chartering (i.e. ship-to-shore compatibility, sampling/testing, contamination, tank cooling etc.)

12 OSC Recent Activities

13 Oman Shipping Company Tankers Profile Strategic Sole Tankers Operator in Oman Contribution to Local Economy Fleet 32 owned Tankers Diversified Fleet Modern Fleet (avg age 5.5 yrs.) Know- How Well established Technical Management Expertise

14 VLCC Going Global with VLCC Chartering Strategic Decision (Jun 2016) Establishing OSC s chartering desk (Sep 2016) VLCCs Withdrawal from VL8 Pool (Dec 2016) Signing CoA with Shell (Jan 2017) Build up Spot Chartering experience Greater autonomy & direct control Cost efficiency Flexible chartering structure to maximize fleet utilisation Expand OSC s brand name In Country Value

15 VLCC Going Global with VLCC Chartering External challenges: Expanding marketing/networking Internal challenges: Structural organizational changes IT integration challenges Adopting to a flexible & professional work environment Availability of Competencies Legal complications

16 Product Tankers A key player in the local/regional Products Trade OSC considers applying its VLCC s learning experience and expand in the Product Tankers sector Potential growth in local/regional products trade Increased refining capacity in Oman in particular & Middle East in general Diversified portfolio Enrich the company profile, customer base locally/regionally & experience in spot chartering Take advantage of low asset prices Source: Clarkson's Research

17 Product Tankers A key player in the local/regional Products Trade OSC took delivery of 10 MR Tankers in 2015/2016 (Project Silver) Provides a platform for OSC to cater to Oman s as well as regional growing refinery capacity

18 Product Tankers A key player in the local/regional Products Trade Success Factors Entering at the right time Having the right Product Mix (i.e. Optimal size, ECO Design, Latest technology) Compliance with latest industry regulations (e.g. BWTS/Emissions Control) Reputable clients Operational excellence

19 Oman Ship Management Company Operational Excellence

20 no of ships Oman Ship Management Company Full Speed Ahead Growing & diversified experience Industry recognition Shell s Top Quartile ranking TMSA level 3.4 Ship Manager of the Year Award by Seatrade and Maritime Standard in 2013 and 2016 ISO certified (ISO 9001 and ISO 14001) OSMC Fleet Development LPG, 2 VLOCs, LNG, 6 VLCCs, 13 Product Tankers, 13

21 Thank you