24 March 2019

Gulf Petrochemical Industries Company (GPIC) held its 5th Extraordinary General Meeting (EGM) and its 40th Annual General Meeting (AGM) on March 21 in the Kingdom of Bahrain under the Chairmanship of the Minister of Oil, His Excellency Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, who represented the Kingdom of Bahrain. While Petrochemical Industries Company (PIC) of Kuwait was represented by the Company’s Finance Manager Mr. Khalid Al Kandari whereas the Saudi Basic Industries Corporation (SABIC) was represented by its VP-Global Finance Reporting & Controllership Mr. Khalid Ali Al-Garni.

During its last meeting, the Ordinary General Assembly had approved the Board of Directors' business report and the Auditor’s report for 2018. The shareholders expressed their satisfaction and appreciation at the Company’s outstanding financial position and its achievements at all levels, as well as enjoying an excellent local, regional and international reputation.

The General Assembly also expressed its sincere gratitude to His Majesty King Hamad, His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister and His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, for their continued support and care for the Company's operations and community programs.

The General Assembly also praised the efforts of the Board of Directors, the Executive Management and all the employees for their outstanding performance during 2018, and commended their hard work, team spirit and commitment to GPIC’s success and operations, which had reflected on the company’s record profits achieved during the year.

The company’s Chairman, H.E. Dr. Ahmed Ali Al Sharyan had emphasized that the Company continues to achieve in 2018 as it did in the previous years. He also said that the combined efforts of all had resulted in reduced spending and increased production, despite the global challenges that the petrochemical industry had witnessed in the last one year, continuing that the Company had also managed to exceed all production targets set forth by the Board of Directors.

H.E. the Chairman praised the close cooperation and coordination with SABIC and PIC, which has had a great impact on the smooth flow of exports of the Company's products.

He said GPIC exceeded all its targets for 2018, and even achieved new records for the first time in its history by the end of 2018. The total production during the summer (July - August) for Urea was 120,456 metric tons, an increase of 20,000 metric tons over the original target. A new record production of 2,078 metric tons of Urea per day was also achieved.

GPIC President Dr. Abdulrahman Jawahery said that the Company also had achieved a new record of 8,311 working days without a lost time accident, which translates to over 30.2 million hours since May 2002.

He said the Company has exported a total of 49,325 metric tons of Ammonia, 408,076 metric tons of Methanol and 667,721 metric tons of Urea, all of which were exported to their final destination on board 59 vessels. In addition, 798 metric tons of bagged Urea and 1,629 metric tons of Methanol were allocated to the local market, in support of Bahrain’s agricultural and industrial sector.

China and Brazil accounted for the largest share of the Company's total exports at 18 percent each, followed by India with 16 percent and Taiwan with 14 percent. He mentioned that these markets are of great strategic importance to all producers.

The Company exported a total of 1.13 million tons of Ammonia, Urea and Methanol, 1 percent higher than the original target for 2018. Dr. Jawahery said that the carbon dioxide recovery unit continued to help reduce emissions and maintain environmental safety according to Bahrain government standards set up in coordination with the Supreme Council for the Environment.

Dr. Jawahery said that the Company has maintained the efficiency of its preventive maintenance systems, which ensures necessary operational efficiency for all of its units. He also said that the Company is committed to a decimal plan that is devised for the renewal or periodic replacement of equipment according to their validity cycle and on evaluating its effectiveness in terms of health.

Dr. Jawahery spoke about the Company's efforts in the field of training and development the company’s workface and noted the efforts in training Bahrainis and developing the national workforce. He said the training center had been transformed into an academy for leadership and learning which is responsible for training, preparing and graduating a new generation of leaders, capable of furthering GPIC’s successes and to seize future investment opportunities.

The Board of Directors had applauded the local and international awards won by GPIC during 2018. The most important being the King Hamad Award for youth empowerment to achieve the SDGs, Furthermore, the company was also awarded the Gold Medal in field of Health, Safety and Environmental Protection in recognition for its outstanding efforts and adherence to the highest standards of conduct in that field. Dr. Jawahery himself was awarded the 2018 top CEO's Safety Award by the National Safety Council in the United Kingdom. GPIC also received the Halal certification for its Methanol products after rigorous examination and analysis of Methanol products to ensure that the material conforms to the requirements of Halal standards. The Company had also won the British Royal Society for the Prevention of Accidents (RoSPA) award for the prevention of accidents for the 14th consecutive year. The Company has also won the Arab Social Responsibility Award in the category of the largest enterprises in the Arab World given by the Arab Network for Corporate Social Responsibility and the 2018 Responsible Care Award for its "Step to the Future" programme from the Gulf Petrochemicals and Chemicals Association.

With the invaluable support from Bahrain’s wise Leadership, the Board Members and the Executive Management, the Company was able to reach the peak of its performance in the past years and has become the focus of interest in the petrochemical industry around the world.