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Portfolio Companiesnogaholding Annual Report 2018 01
DELIVERINGSUSTAINABLE SOLUTIONSANNUAL REPORT 2018
Portfolio Companies nogaholding Annual Review 201602
The Oil & Gas Holding Company B.S.C. (closed)GBCorp Tower, 18th Floor, Financial HarbourP.O. Box 1426, Manama, Kingdom of BahrainT: +973 17 111 900, F: +973 17 111 908Email: [email protected] Registration No. 66088
His Royal Highness Prince Khalifa bin Salman Al Khalifa
The Prime Minister,of the Kingdom of Bahrain
His Majesty King Hamadbin Isa Al Khalifa
The King,of the Kingdom of Bahrain
His Royal Highness Prince Salman bin Hamad Al Khalifa
The Crown Prince,Deputy Supreme Commander and First
Deputy Prime Minister
Portfolio Companies nogaholding Annual Report 201804
CONTENTSOverview Portfolio Companies
Chairman’s Statement 06
Board of Directors 08
Executive Management 09
Milestones 10
Vision, Mission, Values & Roles 12
Profile 14
Portfolio Growth 16
Corporate Governance 18
Portfolio Companies 20
Financial Statements 78
The Bahrain Petroleum Company (BAPCO) 22
The Bahrain National Gas Company (BANAGAS) & Bahrain National Gas Expansion Company (TAWSEAH) 34
Gulf Petrochemical Industries Company (GPIC) 42
Bahrain Aviation Fuelling Company (BAFCO) 52
Bahrain Lube Base Oil Company (BLBOC) 56
Tatweer Petroleum Company (TATWEER) 60
Bahrain LNG WLL (BLNG) 66
Bahrain Gasoline Blending (BGB) 70
BAC Jet Fuel Company (BJFCO) 74
Portfolio Companiesnogaholding Annual Report 2018 05
Overview nogaholding Annual Report 201806
On behalf of the Board of Directors, it is with great pleasure that I present the 2018 annual report for The Oil and Gas Holding Company B.S.C. (c) (nogaholding).”
H.E. Shaikh Mohamed bin Khalifa bin Ahmed Al Khalifa
“
CHAIRMAN’S STATEMENT
Overviewnogaholding Annual Report 2018 07
opportunities for Bahrainis. Bapco will also benefit from a more competitive, resilient and energy efficient facility, and one better equipped to meet future stringent environmental compliance regulatory standards and goals.
The strategic Bahrain LNG Import Terminal project is progressing as planned with expected completion in the second half of 2019. This is another major milestone that will ultimately give the country the security of supply that it needs to meet the growth in demand for natural gas for large industrial projects, power and water generation and for enhanced oil recovery.
nogaholding also continued to play a vital role in promoting best practice and encouraging operational excellence and benchmarking, risk management, business continuity management and business resilience within its portfolio companies. The portfolio companies were operated with high reliability and an exceptional level of safety performance was delivered. This was demonstrated by a number of awards for safety, health and environmental performance that were presented to the companies during the year.
I would like to thank the Board for their diligence, and the management and employees of nogaholding for their creative and hard work throughout 2018 and I wish the company another successful year in 2019.
In closing, I would like to express my sincere thanks and appreciation to the political leadership and the Government of the Kingdom of Bahrain for their continued support and encouragement which enables nogaholding to deliver sustainable earnings and achieve its long term strategic objectives.
Mohamed bin Khalifa Al KhalifaChairman
2018 was a milestone year as nogaholding successfully priced a US$1bn dual-tranche offering in October 2018. The US$500mm 6-year notes and US$500mm 10-year notes were nogaholding’s second issuance of their US$3bn Global Medium-Term Note (GMTN) programme following the debut offering in 2017. The issuance achieved its objectives by extending the debt maturity profile and completing the company’s funding requirements for the year in support of an ongoing capex programme. The offering also received very strong international support with over 70% of bonds allocated to US and UK investors. This was only the second international capital markets offering from Bahrain in 2018.
The performance of the nogaholding group of companies was robust over the past 12 months and the financial results of nogaholding were in line with the stakeholders’ expectations.
Two key projects were successfully commissioned in 2018; The Bahrain Gas Plant Project (BGP) with doubling Tawseah and Banagas combined capacity to 650 million standard cubic feet per day providing a significant long-term contribution to Bahrain’s economy. The second project is the AB Pipeline from Saudi Arabia, the new 118km long pipeline with a maximum nameplate capacity of 400,000 barrels per day replacing the existing 235,000 barrels per day pipeline. Another noticeable achievement was signing the Engineering, Procurement and Construction (EPC) contract for the multi-billion-dollar Bapco Modernisation Programme (BMP). The resulting larger and more complex refinery, with increased exports of higher value products, will generate positive cash flow for the Kingdom of Bahrain while providing new jobs and business
nogaholding along with its portfolio companies, continued to deliver a strong performance
2018 was a milestone year as nogaholding successfully priced a US$1bn dual-tranche offering in October 2018.”
“
Overview nogaholding Annual Report 201708
BOARD OF DIRECTORS
H.E. Shaikh Mohamed bin Khalifa bin Ahmed Al KhlaifaChairman
H.E. Mr. Rasheed Mohammed Al-Mearaj
Dr. Fayez Hashim A. Latif Al-Sadah
Shaikh Tariq bin Mohammedbin Mubarak Al Khalifa
Mr. Yusuf Abdulla Humood
Mr. Yousif Abdul Hussain Khalaf
Overview nogaholding Annual Report 201808
Overviewnogaholding Annual Report 2017 09
EXECUTIVE MANAGEMENT
Dr. Dafer Rashed Al JalahmaActing Chief Executive
Mr. Hassan Al-AlawiManagerPortfolio Management
Dr. Hassan Al MullaManager - Investments
Mrs. Afaf ZainalabedinGeneral Manager - Finance & Admin
Mr. Esam Al MahmeedHead of Treasury
Mr. Joseph HuseGroup General Counsel
Overviewnogaholding Annual Report 2018 09
Mr. Qaisar ZamanGeneral Manager - Investments
Overview nogaholding Annual Report 201810
13
THE ENERGY TOPERFORM FORTHE LONG TERM
20 20
20 20
20 20
08
09
10
11
12
- Continued strong performance despite economic downturn
- Increased portfolio with addition of JV in Skaugen Gulf Petchem Carriers
- Exceptional operational performance across portfolio
- Encouraging results despite strategic challenges
- Bapco refinery processed highest bpd in its history
- GPIC achieved highest production level in its history
- Development of Vision 2030 - Bahrain National Gas Expansion Company
(Tawseah) incorporated - Deal signed with Bapco for Lube Oil Plant
- Advancement despite difficult economic environment
- Increased portfolio with addition of Tatweer and BLBOC JVs
- Exploration of international investment opportunities
- Increase in oil field production by 33.3% - Inauguration of Vision Bahrain - Start up of Bahrain base oils plant
- An exceptional operational performance by portfolio companies
- Outstanding level of safety performance achieved
- Gas sales second highest since formation of plants
Overviewnogaholding Annual Report 2018 11
20
20 20
20
14 17
15
16
18DELIVERINGSUSTAINABLE SOLUTIONS
- Bapco exceeded all time high of 48.9 million barrels - Tatweer successfully invested in oil recovery
strategies - GPIC Exceeded previous highest level of
production
- US$ 1 BN Note issuance - Bapco completed front-end engineering design for
BMP and awarded EPC - Awarded best sub-sovereign bond in EMEA Finance
Achievement Awards
- Bapco refinery produced record crude throughput
- Bafco fuelled over 41,000 aircraft - Bahrain LNG Import Terminal awarded to
international consortium
- Plans to further expand portfolio over next 5-years - Signing of US$ 570 MM Murabaha Facility to meet
expansion targets - Bapco Modernisation Programme (BMP) on schedule - Middle East LNG Deal of the Year for Bahrain LNG
Project
- Finished and delivered AB pipeline to Saudi Arabia
- EPC contractor signed with Bapco biggest agreement - Bapco Modernization Program (BMP)
- Nogaholding bond raised another $1 billion - Banagas expansion delivered
20
Overview nogaholding Annual Report 201812
GROUNDED BY SOLID VALUESVISION, MISSION, VALUES & ROLES
Mission
To build, develop and manage a profitable portfolio of oil and gas industry related companies by investing effectively and promoting excellence
Vision
nogaholding aspires to contribute to profitable national economic diversification and growth by achieving sustained performance
Overviewnogaholding Annual Report 2018 13
Values
- Integrity - Ingenuity - Entrepreneurship - Commitment - Accountability
Roles
- Governance - Portfolio Management & Growth - Promotion of Operational
Excellence and Best Practice - Provision of Professional Service - Develop Intellectual Capital
Overview nogaholding Annual Report 201814
The Oil & Gas Holding Company B.S.C. (c) (nogaholding) was established by Royal Decree No. 77 for the year of 2007, promulgated on August 15, 2007.
Formation ofnogaholding
Addition ofTAWSEAH
Addition ofTatweer &
BLBOC
Addition ofSGPC
PROFILE
MILESTONES
2007 2008 2009 2010
Overviewnogaholding Annual Report 2018 15
Addition ofBahrain LNG
Addition ofBGB
Addition of BJFCO
Exit of SGPC
Inaugural US$ 3 Billion Global Medium-Term Note
(GMTN) Programme
Finished and delivered AB pipeline to
Saudi Arabia
The company is the investment and development arm of the National Oil & Gas Authority (NOGA) and plays a fundamental role in the execution of the strategic plans of the authority and stewardship of the government’s investment in oil, gas and petrochemical sector in Bahrain.
2015 2016 2017 2018
Overview nogaholding Annual Report 201716
Investment Strategy
nogaholding adheres to investment policies which it believes are disciplined and prudent in order to develop its investment portfolio and enable the growth of other Bahraini industries and sectors. The principal components of nogaholding investment policies are its well-defined and focused strategy, approved and regularly reviewed with its board of directors, and its investment process. Investment generally focuses on investments, both strategic to the country in order to provide meaningful employment, and economic to provide at least industry average overall return.
nogaholding continuously evaluates opportunities for partial or complete exits of direct investments within its portfolio when it makes commercial sense to do so, and exited from its 35% interest in SGPC in 2017. In certain strategic assets, nogaholding may continue to hold a majority interest for the foreseeable future. It may also increase its equity stake, when it considers it appropriate, as was the case in the area of upstream crude oil production with Tatweer in which nogaholding increased its equity stake from 51% to 100% in 2016.
Investment process
Identification01
02
03
04
06
05
07
08
Origination and Opportunity Sourcing
Screening and Preliminary Evaluation
Board Approval to Incur Expenses
Negotiation with Target or Potential Project Partner(if necessary)
Due Diligence
Availability of Funds and Leveraging
Board of Directors’ Final Approval
nogaholding continued the planning of long-term, strategic, major investment that would address the vision 2030 guiding principles of sustainability, competitiveness and fairness.
On the downstream side, advancement was made in the area of planning for the future refinery configuration. The objective is to increase the complexity of the refinery by 2022 such that the competitiveness of the refinery will be world-class, and the profitability will be immune from business cycle troughs.
The Bahrain LNG Company reflects long-term energy strategy set by The National Oil & Gas Authority (NOGA) to import Liquefied Natural Gas (LNG) to supplement domestic production and ensure gas demand is met.
As part of refuelling infrastructure projects in Bahrain, nogaholding has invested jointly with Bahrain Airport Company in BAC Jet Fuel project, expected to complete in 2020, for the purpose of construction and owing the new refuelling infrastructure at Bahrain International Airport following the relocation of the existing refuelling facilities.
PORTFOLIO GROWTH
Overview16 nogaholding Annual Report 2018
Overviewnogaholding Annual Report 2017 17Overview 17
Year
33.3%33.3%33.3%
nogaholdingSabic, KSAPIC, Kuwait
Ownership
1979
33.3%
Year
27.5%27.5%45%
nogaholdingBapco
Neste Oil, Finland
Ownership
2009
55%
Year
50%50%
nogaholdingBahrain Airport Company
Ownership
2017
50%Year
100% nogaholding
Ownership
2008
100%
Year
85%15%
nogaholding & BapcoGreenergy, UK
Ownership
2016
85%
Year
60%27%13%
nogaholdingChevron, Bahrain
BP, Middle East
Ownership
1985
60%
Year
30%30%24%16%
nogaholdingTeekay, Canada
GIC, KuwaitSamsung C&T, South Korea
Ownership
2015
30%
Year
75%12.5%33.3%
nogaholdingChevron, BahrainBoubyan, Kuwait
Ownership
1979
75%
Year
100% nogaholding
Ownership
1929
100%
Year
100% nogaholding
Ownership
2009
100%
nogaholding Annual Report 2018
Overview nogaholding Annual Report 201718
Governance
nogaholding has well-established governance standards with clearly defined policies, processes and systems that have been developed to ensure robust accountability.
nogaholding’s Board of Directors comprise a Chairman and five Board members who are appointed by 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.
The Board holds primary responsibility for the implementation of nogaholding’s strategy and oversees nogaholding’s financial performance and management.
nogaholding acknowledges that good governance is essential for sustaining and enhancing company value and maintaining stakeholder confidence.
nogaholding does not seek to micro manage portfolio companies, but is represented on the boards of directors and influences through the Chief Executives and the managements of the companies in which it invests.
nogaholding acknowledges that good governance is essential for sustaining and enhancing company value and for maintaining stakeholder confidence. nogaholding aspires to the highest standards of ethical conduct and to complement its corporate mission, nogaholding has adopted a robust and pragmatic corporate governance framework founded upon integrity, transparency, competence and accountability.
CORPORATE GOVERNANCE
Overview18 nogaholding Annual Report 2018
Overviewnogaholding Annual Report 2017 19Overview 19nogaholding Annual Report 2018
Transparency
nogaholding recognises the importance of building a clear understanding of who we are, what we invest in, and why we invest, in order to build trusted relationships with joint venture partners, the banking community, government bodies, and regulators in Bahrain and throughout the world.
nogaholding has in place a transparent and sound governance structure that provides for adequate operational controls, risk management and accountability.
Portfolio Companies nogaholding Annual Report 201820
PORTFOLIOCOMPANIESOverview
The Bahrain Petroleum Company (BAPCO) 22
The Bahrain National Gas Company (BANAGAS) & Bahrain National Gas Expansion Company (TAWSEAH) 34
Gulf Petrochemical Industries Company (GPIC) 42
Bahrain Aviation Fuelling Company (BAFCO) 52
Bahrain Lube Base Oil Company (BLBOC) 56
Tatweer Petroleum Company (TATWEER) 60
Bahrain LNG WLL (BLNG) 66
Bahrain Gasoline Blending (BGB) 70
BAC Jet Fuel Company (BJFCO) 74
Portfolio Companiesnogaholding Annual Report 2018 21
Portfolio Companies22
THE BAHRAIN PETROLEUMCOMPANY (BAPCO)
Portfolio Companies22
Year of Establishment
Shareholding
Business/Sector
Capacity
Accreditation
1929
100% nogaholding
Oil exploration, refining, marketing and distribution of petroleum products
267,000 barrels per day
ISO 9001 QMS,ISO 14001 EMS,IS 18001 OHSASISO 22301 BCM, OEMS(Operational ExcellenceManagement Systemdesigned to PAS 99), City and Guilds Approved Center, Institute of Leadership and Management Approved Center
nogaholding Annual Report 2018
Portfolio Companies 23
Bapco’s Investment in Business and Operational Excellence, Reliability Engineering and Personnel Development Returns Year on Year Performance Improvements
259,800BPCDCRUDE REFINED
56.1 vol%MIDDLE DISTILLATESPRODUCED
Double WinnerHEALTH & SAFETY
WINNERENVIRONMENTALMANAGEMENT
21.2 MillionHoursWITHOUT LOSTTIME INJURY
428SHIPSLOADED
Portfolio Companies 23nogaholding Annual Report 2018
Portfolio Companies nogaholding Annual Report 201824
Operational Performance
The refinery Operational Availability (Solomon rolling average) was 96.68%, which is close to the pacesetter target of 96.81%. Mechanical Availability was 97.07%.
REFINERY PRODUCTIONON CRUDE PROCESSED
98.9 MILLION BBLS
Volumes in million barrels
Note: Imports/stockdraws of blending components & intermediate feedstocks are excluded from the refinery production above
INTERNATIONAL EXPORT
81.9 MILLION BBLS
16.9
19.88
1.4
15
0.4
0.7
25.8
1.5
14.4
0.42.86.2
17.2
0.6
29.5
1.9
24.2
0.80.4
Portfolio Companiesnogaholding Annual Report 2018 25
Stable outlets for refined products were successfully secured in a challenging International Market that was over-supplied with middle distillates, contributing an additional circa $130 million above the benchmarked standard.
LOCAL MARKET CONSUMPTION
11.4 MILLION BBLSDOMESTIC EXPORT SALESJetA1 to Bahrain International Airport & Gasoil Bunkers
4 MILLION BBLS
SULPHUR
GASOIL/DIESEL
LPG
ASPHALT
GASOLINE
BASE OILS
NAPHTHA
KERO/JETFUEL OIL
LUBE PROPANE BUTANE
3.8
0.20.4
7.2
0.8
2.6
0.4
Portfolio Companies26
Portfolio Companies26
Major Projects
Fire Water System ReplacementCost: $83.4 million EPC ContractContractor: JGC Gulf International CompanyCompletion: 2019
Crude Unit heaters’ replacementCost: $26.5 millionCompletion: 2019
Refinery Process Cooling Water System upgradingCompleted
Bapco Command CentreCompleted
100%
100%
80.41%
82.21%
nogaholding Annual Report 2018
Portfolio Companies 27Portfolio Companies 27
The Oil and Gas Academy
A Learning and Development Center preparing employees and trainees to meet the future needs of Bahrain’s Oil & Gas industries.
Accreditation: Institute of Leadership and Management (ILM) and City & Guilds of UK.
The Learning & Development is a strategic business
partner delivering value to the business and to society by:
Satisfying customersby being a recognised centre of
excellence for world class learning.
Being an enterprising team comitted to growth through learning
and trusted by all stakeholders.
Empowering team membersto create a dynamic performance - oriented environment to meet
changing business needs.
nogaholding Annual Report 2018
Portfolio Companies28
Learning & Development2018 highlights
2,676INDIVIDUALEMPLOYEESTRAINED
529TRAINING PROGRAMME
71,805LEARNING HOURS
Portfolio Companies28 nogaholding Annual Report 2018
Portfolio Companies 29
413PROGRAMME
362PROGRAMME
2,967CONTRACTORSATTENDED BAPCO TRAINING PROGRAMMES
65GRADUATESCHOLARSHIPS
1,719*EMPLOYEES
751*EMPLOYEES
56TRAINEES SELECTED FOR THE DIPLOMA IN OIL & GAS ACADEMY
413INDUSTRIALTRAINING
3,886ATTENDEES
1,338ATTENDEES
333CHILDREN OF BAPCO EMPLOYEE SCHOLARSHIPS
54INJAZ BAHRAIN STUDENTMENTORSHIPPROGRAMME
Internal Training(Excluding Fire School & Contractor Industries)
* Represents individual employees for each training type
* Represents individual employees for each training type
External Training
Contractor, Scholarship, Diploma & Student Training
nogaholding Annual Report 2018
Portfolio Companies30 Portfolio Companies30
The Bapco Modernisation Programme (BMP)
The Bapco Modernization Program (BMP) is Bapco’s long-term commitment to invest in the expansion and upgrade of its existing facilities. Once completed, it is expected that Bapco’s capacity will increase from around 267,000 barrels per day to 380,000 barrels per day.
Phase 4 (Project Execution) of the BMP kicked off on Feb 26, 2018.
2018 was a design and planning year. 2019 will see a major shift towards construction with upwards of 5,000 workers mobilizing in Bahrain to progress construction. Project Progress was nearly at 10% of the total scope.
BMP 2018 Highlights
Bid evaluations To select the preferred Engineering, Procurement and Construction (EPC) Consortium
100%
Package B Site Works awarded to Al Hassanain in Feb 2017, with work completed in Sep 2017.
100%
Environmental & Social Due Diligence (ESDD)
Established ESDD with an action plan, independent audit-ing and monitoring across BMP’s life cycle.
100%
Engineering, Procurement & Construction (EPC)
Awarded to Technip Construction100%
Front EndLoading (FEL)
refers to organized and progressively detailed project definition and execution development. Independent Project Analysis Inc. (IPA) concluded that the project FEL was Good to Best.
100%
nogaholding Annual Report 2018
Package A Site Works awarded to DownTown in Feb 2017. Cliff edge work measuring 2 km completed
100%
Zero Lost Time Incidents
2.1 Million hours100%
Portfolio Companies 31Portfolio Companies 31nogaholding Annual Report 2018
Portfolio Companies32 Portfolio Companies32
AB Pipeline Project
One of the most noteworthy achievements of 2018 was the on-budget commissioning of the new crude oil pipeline AB4 on October 3rd, 2018. The new pipeline replaces an existing, ageing 235,000 bpd link from Saudi Arabia, and also increases Bapco’s capacity to import Saudi Arabian crude oil for the BMP safely and efficiently.
The new pipeline is equipped with a sophisticated leak detection system, and has operations, environmental and security communication systems that are linked to the Bapco refinery control room for round the clock monitoring and control.
Numerous project management and construction challenges were successfully overcome, including removal of 40 million cubic meters of water encountered beneath the King Hamad highway, resulting in 5 large man-made lakes being formed in the desert and attracting a multitude of wildlife species.
112KMLENGTH
SITRAREFINERY
ABQAIQ, EASTERN SAUDI ARABIA
30 INCHPIPELINE
NAMEPLATE CAPACITY OF 400,000 BPD
nogaholding Annual Report 2018
Portfolio Companies 33Portfolio Companies 33nogaholding Annual Report 2018
Portfolio Companies34
BAHRAIN NATIONAL GAS COMPANY B.S.C. (BANAGAS)
BAHRAIN NATIONAL GASEXPANSION COMPANY S.P.C.(TAWSEAH)
Portfolio Companies34
Year of Establishment
Shareholding
Business/Sector
Capacity
Accreditation
BANAGAS TAWSEAH
1979
75% nogaholding12.5% Chevron Bahrain12.5% Boubyan, Kuwait
Gas processing Unit
650 MMSCFD (Combined)
ISO 9001 QMS, ISO 14001 EMS, ISO 18001 OHSAS, ISO 2000, IT
2008
100% nogaholding
Gas processing Unit
650 MMSCFD (Combined)
ISO 9001 QMS, ISO 14001 EMS, ISO 18001 OHSAS, ISO 2000, IT
nogaholding Annual Report 2018
Portfolio Companies 35
148,800metric tonnes BUTANE PRODUCED
131,500metric tonnes PROPANE PRODUCED
8VESSELSLOADED WITH NAPHTHA
208,130metric tonnes NAPHTHA PRODUCED
97LOADING OPERATIONS WERE CARRIED OUT FOR LOCAL SALES OF PROPANE.
$204.45 MILLIONGROSS SALES REVENUE
Portfolio Companies 35
13 VESSELSLOADED WITH LPG
nogaholding Annual Report 2018
Operational Performance
129,500 metric tonnesOF PRODUCT WAS RECOVERED FROM REFINERY OFF GAS (ROG) ON BEHALF OF BAPCO.
Portfolio Companies36
Portfolio Companies36
Major projects
Bahrain Gas Plant Project (CGP-III) Comprises building additional Gas Processing Train (CGP-III) and Storage expansion at Sitra.
Successfully achieved Financial Close (FC) for the $515 million syndicated loan facility with 7 participating banks.
107 employees recruited including 39 under the Bahrainisation programme approved by Tamkeen.
Successfully commisioned in November 2018 and started operation.
nogaholding Annual Report 2018
Pipeline and Sitra StorageExpansion
Construction works included foundation for pipe rack, compressors and other key equipment. Mechanical works on the new Butane and Propane product storage tanks are in progress. Successfully completed in November 2018 and started operation.
Portfolio Companies 37
Plant Gas Throughput and ProductionTrain I, II & III
FEED GAS
Production volume in Metric Tonnes.
nogaholding Annual Report 2018
113,100
2014
109,900
2015
113,000
2016
107,400
2017
129,500
2018
Portfolio Companies nogaholding Annual Report 201838
NAPHTHA
202,200
Production volume in Metric Tonnes.
Plant Gas Throughput and ProductionTrain I, II & III
PROPANE
BUTANE
95,200
108,600
2014
195,300
117,000
137,500
2015
195,600
118,800
137,700
2016
183,700
2017
110,200
124,000
208,900
2018
131,500
148,800
Portfolio Companiesnogaholding Annual Report 2018 39
Production volume in Metric Tonnes. Product Export
PROPANE
BUTANE
NAPHTHA
202,200
2014
102,000
2014
91,600
2014
109,300
113,500
202,900
2015
2015
2015
124,600
118,900
199,600
2016
2016
2016
98,500
99,300
182,000
2017
2017
2017
115,973
109,075
201,130
2018
2018
2018
Portfolio Companies40
Portfolio Companies40
Training and Development
821TRAINEES
195 COURSES
18,623TOTALTRAINING HOURS
2014
1051TRAINEES
286 COURSES
28,876TOTALTRAINING HOURS
2015
836TRAINEES
301 COURSES
30,006TOTALTRAINING HOURS
2016 1,222TRAINEES
191 COURSES
32,694TOTALTRAINING HOURS
20172,572TRAINEES
220 COURSES
49,787TOTALTRAINING HOURS
2018
nogaholding Annual Report 2018
Portfolio Companies 41
Awards and Achievements
The Company’s commitment to highest standards of occupational health, safety and environment protection was recognised by the receipt of:
“Industry Sector Winner Award (Oil & Gas Industry)” from the Royal Society for the Prevention of Accidents (RoSPA) - UK.
“International Safety Award with Merit” from British Safety Council (BSC) – UK.
Portfolio Companies 41
4,339,280MAN-HOURSSUCCESSFULLY WORKED WITHOUT ALOST- TIME ACCIDENT SINCE AUGUST 2014
49,787HOURS TRAINING PROVIDED TO EMPLOYEES WITH 220 COURSES ATTENDED BY 2,572PARTICIPANTS
Combined OHSAS 18001:2007 and ISO 14001:2005 upgrade from Bureau Veritas Certification (BVC).
The Company successfully upgraded Environmental Management Standards ISO: 14001:2004 to ISO 14001:2005 in April 2018.
BSI confirmed continued accreditation to Quality Management Systems (ISO 9001:2015) to 2020.
nogaholding Annual Report 2018
Portfolio Companies42
GULF PETROCHEMICAL INDUSTRIES COMPANY (GPIC)
Portfolio Companies42
Year of Establishment
Shareholding
Business/Sector
Capacity
Accreditation
1979
33.3% nogaholding33.3% Sabic, KSA33.3% PIC, Kuwait
Petrochemical Plant
Ammonia 1,200 MTPD Methanol 1,200 MTPDUrea 1,700 MTPD
ISO 9001 QMS, ISO 14001 EMS, ISO 18001 OHSAS, ISO 27001 ISMS, PAS 99 IMS, ISO 31000 RM, ISO 22301 BCM RC14001, EMS 50001, ISO 17020, ISO 17025, IFA P&SMS
nogaholding Annual Report 2018
Portfolio Companies 43
Operational Performance
1.125 million metric tonnesTOTAL PRODUCTS WERE SHIPPED
1,604,725 metric tonnesTOTAL PRODUCTION OF AMMONIA, UREA AND METHANOL
59VESSELSLOADED
Portfolio Companies 43nogaholding Annual Report 2018
Portfolio Companies44
UREA METHANOL AMMONIA
Achieved the highest ever daily average production of 2,019 MTPD in the month of December. It also achieved the highest ever capacity of 2,082 MTPD
The Urea Plant completed 112 days* of continuous product run
*Due to planned turnaround in April 2018
The Methanol Plant completed 254 days* of continuous product run
The Ammonia Plant completed 247 days* of continuous product run
Portfolio Companies44
21.8823.35
24.9726.57
28.00
Cumulative Total Production (Million Tonnes)2014 to 2018
2014 2015 2016 2017 2018
nogaholding Annual Report 2018
Portfolio Companies 45
Onstream factor 2014 to 2018
Utilisation factor 2014 to 2018
METHANOL
METHANOL
AMMONIA
AMMONIA
UREA
UREA
99.94
103.64
99.93
103.44
100
111.86
2014
91.55
103.67
90.02
102.58
92.82
112.07
2015
99.55
106.96
99.08
102.21
99.65
112.87
2016
100
106.07
99.60
101.35
99.02
113.60
2017
91.2
105.20
94.60
102.10
92.60
113.40
2018
nogaholding Annual Report 2018
Portfolio Companies46 nogaholding Annual Report 2018
Portfolio Companies 47
37SHIPSLOADED
59%
METHANOL
METHANOL
UREA
UREA
AMMONIA
AMMONIA
18SHIPSLOADED
4SHIPSLOADED
5%
Methanol tanker loading was initiated by end-December 2016 for local sale. This progressed very well during 2018 resulting in a total of 1,629 MT Methanol being sold in the same year. The Methanol sold in Bahrain is used in downstream industry thus boosting the sustainable development of the country.
Export in 2018 (Products)
No. of Ships loaded in 2018
Portfolio Companies 47nogaholding Annual Report 2018
36%
Portfolio Companies48
Exports by Country
India China Korea
Total QuantityExported (MT)
Total QuantityExported (MT)
47%33%20%
AMMONIA EXPORTS
METHANOL EXPORTS
Portfolio Companies48
49,324
408,076
nogaholding Annual Report 2018
Taiwan 39%China 36%Korea 9%Thailand 8% UAE 3%USA 3%Italy 2%
Portfolio Companies 49
Brazil 31%India 24%Australia 14%Thailand 12%USA 7%China 6%South Africa 4%Korea 2%
Total QuantityExported (MT)
Total QuantityExported (MT)
UREA EXPORTS
CUMULATIVE EXPORTS (AMMONIA, METHANOL & UREA)
Portfolio Companies 49
667,720
1,125,122
nogaholding Annual Report 2018
Brazil 18%China 18%India 16%Taiwan 14%Thailand 10%Australia 8%Korea 5%USA 5%South Africa 2%UAE 2%Italy 2%
Portfolio Companies50
Portfolio Companies50
UF85 Project
New Nitrogen PlantNew Ammonia & Methanol loading arms:
The contract for 22 metric tons per day (mtpd) Urea Formaldehyde (UF85) unit was awarded to JGC Gulf International Company, Saudi Arabia. The total cost of the project is $ 13 million. Actual production was achieved during quarter four of 2018. The project will contribute to securing GPIC’s chemical requirements for the manufacturing of Granular Urea. The project reflects GPIC’s commitment towards ensuring the sustainability and economic efficiency of its operations and the effective use of natural resources, minimizing its impact on the environment as well as biodiversity.
2018 was another extremely successful year for GPIC in terms of Safety, Security, Health and Environmental (SSHE) excellence.
In 2018 our biggest achievement and challenge was to complete the Maintenance Turnaround successfully in a Safe, Secure and Environmentally friendly manner. A daily peak work force of 4,000 regional and international contractors along with GPIC employees carried out the jobs safely and efficiently without any accident.
GPIC’s most noticeable achievements in the areas of safety, security, health and the environment are as follows;
GPIC achieved over 30 million accident free man-hours at the end of 2018, which is equivalent to 16 ½ years without an LTA.
A new Cryogenic Nitrogen unit with a capacity of 950 Nm3/hr was installed and commissioned during 1st quarter of 2018, the purpose of the unit is to meet the additional demand of Nitrogen on normal operations and during plant turnarounds. This Nitrogen Generator Package System is supplied by ‘Air Liquid, Global E & C solutions’ who have extensive experience in air separation plants with over 3,500 plants built around the world.
A new Cryogenic Nitrogen unit with a capacity of 950 Nm3/hr was installed and commissioned during 1st quarter of 2018, the purpose of the unit is to meet the additional demand of Nitrogen on normal operations and during plant turnarounds. This Nitrogen Generator Package System is supplied by ‘Air Liquid, Global E & C solutions’ who have extensive experience in air separation plants with over 3,500 plants built around the world.
Safety, Health andEnvironment Achievements
Portfolio Companies50 nogaholding Annual Report 2018
Portfolio Companies 51
Management systems:
> 30 millionACCIDENT FREE MAN-HOURS AT THEEND OF 2018
4000DAILY PEAK WORK FORCE OF REGIONAL AND INTERNATIONAL CONTRACTORS ALONG WITH GPIC EMPLOYEES CARRIED OUT THE JOBS SAFELY AND EFFICIENTLY WITHOUT ANY ACCI-DENT.
• ISO 9001:2015 QUALITY MANAGEMENT,• ISO 14001:2015 ENVIRONMENT MANAGEMENT SYSTEM,• OHSAS 18001:2007 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM,• ISO 22301:2012 BUSINESS CONTINUITY MANAGEMENT,• ISO 50001:2011 ENERGY MANAGEMENT SYSTEM,• ISO 27001:2013 INFORMATION SECURITY MANAGEMENT,• RC 14001:2015 RESPONSIBLE CARE MANAGEMENT SYSTEM,• PAS 99:2012 INTEGRATED MANAGEMENT SYSTEM, • ISO 17020:2012 REQUIREMENT FOR THE OPERATION OF VARIOUS TYPES OF BODIES PERFORMING
INSPECTION,• ISO 17025:2005 GENERAL REQUIREMENTS FOR THE COMPETENCE OF TESTING AND CALIBRATION
LABORATORIES,• HALAL CERTIFICATE FOR METHANOL,• IFA PROTECT & SUSTAIN MANAGEMENT SYSTEM – PRODUCT STEWARDSHIP PROGRAM
(EXCELLENCE).• GPIC ALSO COMPLIES WITH ISO 31000 RISK ASSESSMENT – GUIDELINE, AND PROCESS SAFETY
MANAGEMENT SYSTEM (PSM).
Portfolio Companies 51nogaholding Annual Report 2018
Awards and Achievements
Portfolio Companies52
BAHRAIN AVIATION FUELLINGCOMPANY (BAFCO)
Portfolio Companies52
Year of Establishment
Shareholding
Business/Sector
Accreditation
1985
60% nogaholding27% Chevron, Bahrain13% BP, Middle East
Operate and maintainaviation fuel storage andhandling and into-planedelivery services.
ISO 9001 QMS, ISO 18001 OHSAS
nogaholding Annual Report 2018
Portfolio Companies 53
41,405NUMBER OF AIRCRAFT REFUELLED IN 2018
Portfolio Companies 53
160MILLION US GALLONTOTAL VOLUME UPLIFT IN 2018
1,767,727BAFCO LTI FREE
466,613CONTRACTOR LTI FREE HOURS
nogaholding Annual Report 2018
Portfolio Companies nogaholding Annual Report 201854
Operational Performance & Achievements:
- The total volume uplift at Bahrain International Airport has increased over the last 4 years with a total of 160 Million US gallons of fuel in 2018
- BAFCO (and its contractors) have achieved over 2.0 million man-hours without any Lost Time Incident
- No reduction in supply to Bahrain International Airport (BIA)
- Into plane labour efficiency improvement of over 20%
NO. OF AIRCRAFT REFUELLED
TOTAL VOLUME UPLIFT (MILLIONS USG)
2017
148
2014
131
2015
143
2016
144
2017
39,223
2014
40,836
2015
41,623
2016
40,946
2018
2018
41,405
160
Portfolio Companiesnogaholding Annual Report 2018 55
BAFCO AND CONTRACTOR LTI-FREE HOURS
BAFCO LTI FREE
CONTRACTOR LTI FREE HOURS
411,100
2017
1,450,056
2016
1,450,056
2017
1,767,727
2018
466,613
2018
1,069,978
2014
1,228,157
2015
278,710
2014
290,083
2015
354,105
2016
Portfolio Companies56
BAHRAIN LUBE BASE OILCOMPANY (BLBOC)
Portfolio Companies56
Year of Establishment 2009
Shareholding 27.5% nogaholding 27.5% Bapco 45% Neste Oil, Finland
Business/Sector Group III Very High Viscosity Index (VHVI) Lubricant Base Oils
Capacity 400,000 MTPY
Accreditation ISO 9001 QMS, ISO 14001 EMS, ISO 18001 OHSAS, ISO 22301 BCM OEMS (Operational Excellence Management System designed to PAS 99)
nogaholding Annual Report 2018
Portfolio Companies 57Portfolio Companies 57
Operational Performance
Lube Base Oils
- Bapco operates and maintains the Lube Base Oil Plant at Sitra on behalf of the Bahrain Lube Base Oil Company (BLBOC) joint venture
- Neste used to lift and market all BLBOC products, however, from early Q4 2017, each shareholder has commenced marketing and selling its own equity share of product. Bapco markets Bahrain share with its registered brand BAPbase® that is now in the market
Finished Lubricants
- Bapco’s Finished Lubricants product range, officially launched in December 2014, uses BAPbase® base oils in some of its formulations
- Bapco’s domestic lubricant sales doubled over the last couple of years. A range of industrial lubricants, especially Turbine Oils and Industrial Gear Oils, are being developed for use at Refineries
- The domestic and export business continues to expand, with new customers and distributors in other GCC countries, as well as internationally
nogaholding Annual Report 2018
Portfolio Companies58
FEEDSTOCK COST ($/MT)
nogaholding Annual Report 2018
TOTAL LUBE BASE OIL LIFTED (MT)
855.00
319,000
2014
498.00
353,000
2015
416.00
331,000
2016
515.00
363,000
2017
643.06
357,958
2018
Portfolio Companies 59nogaholding Annual Report 2018
Portfolio Companies60
TATWEERPETROLEUM
Portfolio Companies60
Year of Establishment
Shareholding
Business/Sector
Accreditation
2009
100% nogaholding
Redevelopment and growth of Bahrain field
QMS,ISO 9001:2008,Drilling Fluid Lab
nogaholding Annual Report 2018
Portfolio Companies 61
1,021TOTAL NUMBER OF WELLS DRILLED SINCE TATWEER’S INCEPTION IN 2010, INCLUDING 7 KHUFF GAS WELLS.
667,118MAINTENANCEMAN-HOURSCOMPLETED
42,100BARRELS PER DAYAVERAGE OIL ANDCONDENSATEPRODUCTION
1.4BILLIONCUBIC FEET PER DAY PRODUCTION CAPACITY OFNON-ASSOCIATED GAS WAS SUCCESSFULLY MAINTAINED
250WELLS OUT OF 514 JOBS WERE STIMULATED DURING RIG OPERATIONS AND 191 WERE STIMULATED RIG-LESS TO IMPROVE PRODUCTIVITY
514WORKOVERS AND NEWCOMPLETIONS(3023 TO 2010)
Portfolio Companies 61
Operational Performance
nogaholding Annual Report 2018
Portfolio Companies nogaholding Annual Report 201862
80,00250,00225,80050,412128,800
2018
2017
20162015
2014
Training & Development Hours
Gas Delivered (MMSCFD)
2,100
2,048
2,1002,192
2,283
2017 2018201620152014
Portfolio Companies 63
2017 2018201620152014
949
1,021
883845
783
Black Oil Production(MBOPD)
No. of wells (cumulative)
Portfolio Companies 63
2016
44.4
2015
46.2
2014
44.1
nogaholding Annual Report 2018
2017
40.2
2018
38.2
Portfolio Companies64
NEW 500 MMSCFD CGDF WAS COMMISSIONED
Despite the low oil prces, Tatweer endeavored to maintain oil and gas production levels. Efforts in this direction are now significantly more optimistic with the discovery of the Kahlij Al-Bahrain Basin, our large scale offshore shale formation, which is the biggest discovery since 1932 with over 80 billion barrels of tight oil in place. In addition, the dicovery of 10 to 20 trillion cubic feet of natural gas in the Pre-Unayzah reservoir is a welcomed development which aims to meet the increasing gas demands of the Kingdom of Bahrain.
Major Projects
Portfolio Companies64 nogaholding Annual Report 2018
Portfolio Companies 65
DRONE TECHNOLOGY FOR SECURITY, SURVEILLANCE, AND EMERGENCY RESPONSE.
83%BAHRAINIZATION RATE
Achievements
Portfolio Companies 65nogaholding Annual Report 2018
Portfolio Companies66
BAHRAIN LNG W.L.L. (BLNG)
Portfolio Companies66
Year of Establishment 2015
Shareholding 30% nogaholding 30% Teekay, Canada 24% GIC, Kuwait 16% Samsung C&T, South Korea
Business/Sector Receiving terminal for regasification of Liquified Natural Gas (LNG)
Capacity 800 MMSCFD
nogaholding Annual Report 2018
Portfolio Companies 67Portfolio Companies 67
Operational Performance
Bahrain LNG construction commenced mid-Q4 2016 with GS Engineering & Construction (South Korea) as the main contractor. The majority of construction works were completed in 2018 and the project is now entering the Commissioning Phase.
At December 31st 2018:
- The breakwater and piling construction works were completed offshore;
- The offshore jacket structure fabricated in South Korea was transported to the offshore project site in Bahrain and permanently installed in Q2/18;
- The Regasification Platform fabricated by CUEL in Thailand was transported and installed onto the offshore jacket in Q4/18;
- The subsea and onshore pipeline has been installed, including the sections constructed by Horizontal Directional Drilling (HDD) by NSCC;
nogaholding Annual Report 2018
- Offshore pipe racks and access trestles were fabricated by AMA in Bahrain and installed offshore;
- Civil works on the Onshore Reception Facility (ORF) have been concluded;
- Equipment for the Nitrogen Production Facility (NPF) has been delivered and installed.
- The “Bahrain Spirit” FSU was delivered from DSME and was engaged in short term trading.
Portfolio Companies nogaholding Annual Report 201868
836,066TONNES OF ROCK
A further 23,238 tonnes of rock placed to complete the inner core of the breakwater (total of 836,066 tonnes)
14 millionMAN HOURS
Over 14 million man hours completed with 1500 workers at peak production
215 PILES
Completed 81 piles to conclude the piling works or 215 total piles
Achievements
Project executed in full compliance with the Equator Principles, an industry benchmark for determining, assessing and managing environmental and social risks in a project.
Safe transportation and float over installation of the 7,500 tonne offshore jacket and Regasification Platform from Asia.
Completion of 2.2km and 750m Horizontal Directional Drilling for the installation of the 24inch gas pipeline OVER 14 MILLION MAN
HOURS COMPLETED WITH 1500 WORKERS AT PEAK PRODUCTION
9,334ACCROPODES
7,422 accropodes positions to complete the outer armour of the breakwater (total 9,334 tonnes)
Portfolio Companiesnogaholding Annual Report 2018 69
Portfolio Companies70
BAHRAIN GASOLINE BLENDING (BGB)
Portfolio Companies70
Year of Establishment 2016
Shareholding 85% nogaholding & Bapco 15% Greenergy, UK
Business/Sector Gasoline Blending Facility
Capacity Understudy
nogaholding Annual Report 2018
Portfolio Companies 71Portfolio Companies 71
Operational Performance
The joint venture has successfully developed a dedicated gasoline blending & trading system with the aim of positioning Bahrain as a leading participant in the Middle East gasoline market
- BGB started “Go Live” operations on 20th Feb 2017 as planned
- A fully functional independent entity capable of trading, blending, risk management and financing
- BGB blended more than 13 million barrels of gasoline for Bahrain & export markets since inception
- BGB has trading relationships with most of the major refineries & traders in the region
nogaholding Annual Report 2018
Portfolio Companies72
MAJOR INJURY
0
MINORINJURY
0
INCIDENTS(NEAR MISS)
0
Achievements
Active gasoline trading from Bahrain:BGB has been an active participant in the import and export market and has successfully executed trades in the Middle East, Europe and Asia
Risk management: BGB manages price risk by hedging its exposure via trading in the financial derivatives market.
Portfolio Companies72 nogaholding Annual Report 2018
2018 Turnaround from Inception to Operations
Feb’17
Mar-Aug’17 Sep’17
Nov’17
Feb’18 Aug’18
Dec’18
‘Go Live’ Standalone entity blending gasoline for Bahrain market
First export cargo in many years from Bahrain; Actively trading since then
First shareholder’s meeting in Bahrain
Successful financial audit
Bahrain jurisdiction registered in exchange
Preliminary study for construction of new tanks completed
Portfolio Companies 73nogaholding Annual Report 2018
Portfolio Companies74
BAC JET FUELCOMPANY (BJFCO)
Portfolio Companies74
Year of Establishment
Shareholding
Business/Sector
2016
50% nogaholding,50% Bahrain AirportCompany
Construction and owning the new refuelinginfrastructure at BIA
nogaholding Annual Report 2018
Portfolio Companies 75Portfolio Companies 75
BAC Jet Fuel Company is in the process of expanding (1) the hydrant system and (2) construction a new fuel storage facility (Fuel Farm) at the Bahrain International Airport.
Project Fuel Hydrant Fuel FarmMain Contractor Amana Pipeline Construction Amana Pipeline Construction
Start Date March 2017 March 2017
Completion date Q3 2020 Q3 2019
Overall Progress 46% 64.59%
Total Man-Hours to end-Dec 2018 128,576 870,011
Lost Time Incident (LTI) 0 1
Accomplished Activities - Phase 1 is completed
- Phase 2 is completed
- Main storage tanks 1 & 3 tank farm & External Painting work is completed.- Main storage tank 4 – Tank farm is completed and External painting work is
under progress.- Fire water tank – Tank farm is completed and External painting work is
under progress.- Operations & Control building – Super structure work is completed and
MEP / finishing work is under progress.- Substation – Super structure is completed and internal painting / electrical
conducting is under progress.- Fire pump shelter, Fuel hydrant shelter, recirculation shelter – Foundation,
grade slab and PEB work is completed.- Parking dispenser (2No) - Foundation, grade slab and PEB work is
completed.- Fueller loading shelter - Foundation, grade slab and PEB work is
completed.- Jumbo fueller parking – PEB work is completed and grade slab work is
under progress.- Bridger Offloading – Foundation and grade slab work is completed.- Vehicle Service Building – Foundation work is completed, Grade slab work
/ PEB work is under progress.- External GRE Fire water line / foam line / OWS line – under progress.- Above ground foam line installation – under progress.
nogaholding Annual Report 2018
Consolidated Financial Statements nogaholding Annual Report 201876
FINANCIALSTATEMENTSConsolidated Statement of Financial Position 78
Consolidated Statement of Profit or Loss and Other Comprehensive Income 79
Consolidated Statement of Cash Flows 80
Consolidated Statement of Changes in Equity 82
Consolidated Financial Statementsnogaholding Annual Report 2018 77
Consolidated Financial Statements nogaholding Annual Report 201878
2018 BD ‘000
2017BD ‘000
ASSETS Non-current assetsProperty, plant and equipment 986,265 944,198Capital work-in-progress 454,018 430,607Investments in associates and joint venture 69,753 62,822Long-term assets 25,408 24,207Derivative financial instruments 3,036 1,697Restricted cash 13,412 10,598
1,551,892 1,474,129
Current assetsInventories 204,193 203,688 Trade and other receivables 477,797 365,959 Due from a related party 815,564 590,351 Derivative financial instruments 2,720 568 Cash and bank balances 809,516 458,649
2,309,790 1,619,215 TOTAL ASSETS 3,861,682 3,093,344
EQUITY AND LIABILITIESEquityShare capital 1,184,400 1,184,400Capital adjustment account (421,609) (421,609)Contribution from shareholder 438,271 346,762Sinking fund reserve 160,125 160,125Statutory reserve 334,219 323,915Cash flow hedge reserve 3,951 2,540Retained earnings 381,473 288,098 Equity attributable to the shareholder of the Parent 2,080,830 1,884,231Non-controlling interests 9,555 8,115Total equity 2,090,385 1,892,346
LiabilitiesNon-current liabilitiesBorrowings 1,121,050 609,340 Employees’ end of service benefits 18,864 17,241 Retention payable - 6,848 Abandonment and restoration costs obligations - 182,609
1,139,914 816,038
Current liabilitiesBorrowings 32,461 5,655 Dividend payable 56,400 56,400 Trade and other payables 531,041 321,978 Retention payable 8,957 - Income taxes payable 2,524 927
631,383 384,960 Total liabilities 1,771,297 1,200,998 TOTAL EQUITY AND LIABILITIES 3,861,682 3,093,344
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAt 31 December 2018
Consolidated Financial Statementsnogaholding Annual Report 2018 79
2018 BD ‘000
2017BD ‘000
Sales 2,857,389 2,307,255 Cost of sales (2,275,386) (1,673,862)Gross profit 582,003 633,393 Other income 66,516 63,063 Staff costs (90,402) (79,667)Maintenance and other expenses (97,211) (93,289)Other expenses (171,098) (146,080)Depreciation (156,421) (137,627)Operating profit 133,387 239,793 Finance income 9,467 8,651 Finance costs (45,907) (12,353)Share of profit from associates and joint venture - net 11,578 2,388 Loss on disposal of an associate - (952)Profit before income tax 108,525 237,527 Income tax expense (4,024) (927)Net profit for the year 104,501 236,600
Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods:Gain on cash flow hedge 1,339 1,697 Share of gain on cash flow hedge from an associate 72 843
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:Actuarial gain 438 191 Share of actuarial gain (loss) from associates 204 (195)TOTAL COMPREHENSIVE INCOME FOR THE YEAR 106,554 239,136
Net profit for the year attributable to:Shareholder of the parent 103,037 236,210 Non-controlling interests 1,464 390
104,501 236,600
Total comprehensive income attributable to:Shareholder of the parent 105,090 238,746 Non-controlling interests 1,464 390
106,554 239,136
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOMEFor the year ended 31 December 2018
Consolidated Financial Statements nogaholding Annual Report 201880
2018 BD ‘000
2017BD ‘000
OPERATING ACTIVITIESNet profit before tax for the year 108,525 237,527 Adjustments for: Depreciation 156,421 137,627 Bahrain crude oil purchases 4,319 4,797 Fees from gas field operations (112) (1,283) Finance income (9,467) (8,651) Finance costs 45,907 12,353 Share of profit from associates and joint venture - net (11,578) (2,388) Loss on disposal of an associate - 952 Loss on acquisition of a joint venture and a subsidiary 551 - Property, plant and equipment and capital work-in-progress written-off 3,730 478 Provision for slow-moving inventories 513 600 Provision for doubtful trade and other receivables 16,033 11,723 Provision for employees' end of service benefits 2,830 2,593 Fair valuation (gain) loss on derivatives, net (644) 426 Working capital changes: Inventories (385) (5,691) Trade and other receivables (131,088) (98,331) Trade and other payables 202,588 102,509 Retention payable 2,109 4,125 Net cash flows from operations 390,252 399,366 Employees' end of service benefits paid (706) (1,320)Income tax paid (2,427) - Net cash flows from operating activities 387,119 398,046
CONSOLIDATED STATEMENT OF CASH FLOWSFor the year ended 31 December 2018
Consolidated Financial Statementsnogaholding Annual Report 2018 81
2018 BD ‘000
2017BD ‘000
INVESTING ACTIVITIESPurchase of property, plant and equipment (81,105) (55,742)Additions to capital work-in-progress (316,391) (247,534)Additions in associate - (10,717)Consideration received on disposal of an associate - 1,743 Dividends received from associates (3,774) - Movement in long-term assets (1,201) (643)Movement in restricted cash (2,814) (509)Finance income received 9,467 8,651 Investment in a subsidiary - (964)Net cash used in investing activities (395,818) (305,715)
FINANCING ACTIVITIESNet movements in amounts due from a related party (134,988) (211,093)Proceeds from borrowings 538,516 539,218 Repayment of borrowings (5,655) (5,655)Finance costs paid (38,283) (5,726)Movement in shareholders current accounts of Bafco (24) (89)Dividends paid - (56,550)Net cash flows from financing activities 359,566 260,105
NET INCREASE (DECREASE) IN CASH AND BANK BALANCES 350,867 352,436 Cash and bank balances at 1 January 458,649 106,213 CASH AND BANK BALANCES AT 31 DECEMBER 809,516 458,649
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)For the year ended 31 December 2018
Consolidated Financial Statements nogaholding Annual Report 201882
Equity attributable to equity shareholder of the parent
Sharecapital
BD ‘000
Capitaladjustment
accountBD ‘000
Contributionfrom
shareholderBD ‘000
Sinkingfund
reserveBD ‘000
StatutoryreserveBD ‘000
Cash flow
hedgereserveBD ‘000
Retainedearnings*
BD ‘000Total
BD ‘000
Non-controlling
interestsBD ‘000
TotalBD ‘000
At 1 January 2018 1,184,400 (421,609) 346,762 160,125 323,915 2,540 288,098 1,884,231 8,115 1,892,346
Net profit for the year - - - - - - 103,037 103,037 1,464 104,501
Other comprehensive income - - - - - 1,411 642 2,053 - 2,053
Total comprehensive income - - - - - 1,411 103,679 105,090 1,464 106,554
Movement in non-controlling interest:
shareholders current accounts of Bafco - - - - - - - - (24) (24)
Transfer to statutory reserve - - - - 10,304 - (10,304) - - -
Contribution in kind - - 91,509 - - - - 91,509 - 91,509
At 31 December 2018 1,184,400 (421,609) 438,271 160,125 334,219 3,951 381,473 2,080,830 9,555 2,090,385
At 1 January 2017 1,184,400 (421,609) 318,960 160,125 300,294 - 132,063 1,674,233 7,643 1,681,876
Net profit for the year - - - - - - 236,210 236,210 390 236,600
Other comprehensive income (loss) - - - - - 2,540 (4) 2,536 - 2,536
Total comprehensive income - - - - - 2,540 236,206 238,746 390 239,136
Dividends proposed and paid - - - - - - (56,550) (56,550) - (56,550)
Movement in non-controlling interest shareholders current accounts of Bafco - - - - - - - - (89) (89)
Acquisition of non-controlling interest - - - - - - - - 171 171
Transfer to statutory reserve - - - - 23,621 - (23,621) - - -
Contribution in kind - - 27,802 - - - - 27,802 - 27,802
At 31 December 2017 1,184,400 (421,609) 346,762 160,125 323,915 2,540 288,098 1,884,231 8,115 1,892,346
* Retained earnings include non-distributable reserves arising from consolidation of subsidiaries amounting to BD 144,300 thousand (2017: BD 144,207 thousand).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended 31 December 2018
Consolidated Financial Statementsnogaholding Annual Report 2018 83