Saudi Aramco’s Board of Directors approved the establishment of the Saudi Aramco Products Trading Company (Aramco Trading Company, ATC, or Aramco Trading) in October 2010, as a wholly owned subsidiary that trades refined, liquid chemical and polymer products.
Aramco Trading moved into its corporate offices in Dhahran, Saudi Arabia and officially launched operations on January 1, 2012.
Since then, Aramco Trading has emerged as the Middle East’s premier trading company for refined petroleum products, and the largest shipper in the region. We focus on our partners’ needs, from refiners and shipping companies to end users and other traders.
We are the global integrated platform for Saudi Aramco’s downstream assets, as well as for our international partners. We are a key player in the region, supplying Europe, the Middle East, Africa, the Americas, Asia, and the Indian subcontinent.
We offer our customers trading in refined products, chemical and polymer products, ship chartering and logistics, risk identification and management, billing and payment, and data capture. We also specialize in protecting profit margins from market volatility through hedging using financial derivatives, including over-the-counter swaps and Intercontinental Exchange (ICE) futures.
As the largest refined products trading and shipping operator in the Middle East region, we offer our customers leverage, flexibility, and reliability. We trade around 1.5 million barrels of refined, liquid chemical and polymer products every day, with chartered vessels moving five cargoes on a daily basis as of 2016. Gasoline imports comprise a large portion of our activity, followed by diesel and fuel oil vessels.
With our headquarters in Dhahran, Saudi Arabia and an office in Singapore, we are one of the largest shippers of refined petroleum products in the region, with refiners, shipping companies, financial institutes, end-users and other products-trading companies and houses recognizing us as a key trading partner.
Saudi Aramco’s Board of Directors approves the establishment of Saudi Aramco Products Trading Company (Aramco Trading Company, ATC, or Aramco Trading) as a wholly owned subsidiary to trade refined, liquid chemical and polymer products. Aramco Trading Company represents Saudi Aramco’s interest in sales and purchases and supports our parent company's efforts to maximize downstream integration and optimize its growing global downstream presence.October 2010
The Aramco Trading Company begins with few employees and quickly commences business operations by establishing internal risk management and counterparty business management systems in line with international best practices.
Within the first six months of operation, our teams manage a daily average of 680,000 barrels, or the equivalent of two medium-sized tankers, across international product sales and purchases.January 2012
Early on, we develop financial services, in the form of hedging, to mitigate market price risks and guarantee profit margins. By 2013, we are hedging electronically through the Intercontinental Exchange (ICE).March 2012
We begin gasoline storage and blending, the process by which 91 and 95 octane gasoline for vehicles is produced. This is done by sourcing components and refined products, testing the component mixes in a laboratory, and then loading the appropriate components into our vessels for the desired blend of gasoline.
We are soon recognized as one of the largest and most reliable gasoline blenders in the region, loading a daily average of one vessel of 300,000 barrels.March 2013
We begin fuel oil storage and blending. After sourcing components and refined products, and testing the component mixes, the appropriate components are loaded into our vessels for the desired blend of fuel oil.
The Fujairah terminal is specialized for blending the oil according to our customers’ requirements.March 2014
We begin loading chemical products from Petro Rabigh. These products include polypropylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and monoethylene glycol (MEG).April 2014
Saudi Aramco Trading Singapore Pte. Ltd. (SATS) is incorporated in May 2015. As a wholly owned subsidiary of the Aramco Trading Company, SATS provides trading and marketing services, as well as market intelligence, for the Asia Pacific region.May 2015
As our mother company, Saudi Aramco’s corporate values guide our business operations and are factored into all dimensions of who we are. We are proud of our corporate values set out here, which are the backbone of how we trade, deliver, and meet our customers’ needs.
Our people are our most important assets. Aramco Trading has a diverse workforce and a work environment that values inclusion as a key driver of our success, leading to greater innovation and better solutions.
We are proud to have more than 15 nationalities represented in our workforce, with women making up 17% of our staff.
Our staff is composed of talented professionals who are energetic, empowered, engaged, and customer-focused. We focus on engaging and developing our employees, and are eager to attract high-performing professionals locally and from around the world.
First of all, I want to thank every member of the Aramco Trading family for the efforts and contribution to the company's successes over the past five years. Aramco Trading's only asset is its people. Without this group of dedicated employees, the achievements of recent years and our major plans for the future will not be possible.
January 1, 2017 is a special day for ATC as it marks our five-year anniversary. We started our journey to add value to Saudi Aramco's downstream portfolio in 2012, with a mission to "balance Saudi Aramco's downstream system reliably and efficiently while maximizing trading margins through best-in-class practices." We have grown steadily since then and now have a major presence in the petroleum markets, as well as a developing petrochemical presence.
Looking back, Aramco Trading faced a challenging marketplace with lower prices, increasing competition, new trade patterns, and fluctuating supply and demand balances because of domestic pricing changes, geopolitical issues, and production issues. Despite this, Aramco Trading achieved a record trading volume of 1.5 million barrel per day of liquid products, while polymer sales grew to 400 kilotons per annum (KTA). Aramco Trading steadily increased volume from the company system and third parties, coupled with increased blending capabilities, to maintain our ever- increasing market coverage and include new markets in Africa, New Zealand, Australia, and Brazil.
Throughout this growth, we have remained loyal to our mission and have been able to build on the company's strong foundation and shareholder support to expand the scope and scale of the operations. Aramco Trading’s structured risk management and hedging has shielded the company from extreme market conditions, despite the turbulent and extremely volatile market in recent years. However, risk management and control will be an ever-increasing focus going forward as the company expands into increasingly complex and competitive markets and products.
The challenges faced by Aramco Trading in the coming year, as well as further into the future, require that we continue to change and adapt to ensure that we can continue to deliver maximum value to our shareholder. To this end, the company will continue moving forward by exploring new markets, developing new counterparties, and expanding the product base, while keeping strong focus on risk management and safety.
Aramco Trading will also continue on its "One Company, One culture" path to foster a more cohesive workforce that pulls in the same direction. In addition, this year we will fully develop a Singapore office (SATS) that will leverage its location in the hub of the Asian hydrocarbon market, as well as the local labor pool, to establish more fully Aramco Trading's presence in Asia. This will provide the solid foundation that the company requires to build on for meeting its vision of becoming a "Trading Powerhouse."
We should all be proud of our accomplishments over the past five years. I am confident that the progress we have made to date, combined with our planned initiatives, will lead us to further success.