Message from Ibrahim al-buainain

 

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.