Annual Report 2023 Non Financial Eng

Progressing towards a promising future

Custodian of the Two Holy Mosques

King Salman bin Abdulaziz

Al Saud

King of the Kingdom of Saudi Arabia

His Majesty

King Hamad bin Isa

Al Khalifa

King of the Kingdom of Bahrain

His Highness

Sheikh Mishal Al Ahmad

Al Jaber Al Sabah

Amir of the State of Kuwait

The Chairman’s Message

Kamal bin Ahmed Mohamed Chairman

It is my privilage to present the 2023 Annual Report for Gulf Petrochemical Industries Company (GPIC), reflecting another year of outstanding performance. This is despite the heightened global turbulence and uncertainty witnessed over the last twelve months, and the many challenges this brought upon us.

On behalf of the Board of Directors, I congratulate the Chief Executive Officer, Eng. Yasser Abdulrahim Alabbasi, members of the Executive Management, GPIC Labour Union and all employees for their remarkable contributions that has culminated in GPIC’s commendable resilience, agility and perseverance during the year.

Following the record financial performance in 2022, GPIC encountered many challenges over the last year as tough market conditions lowered product prices despite stellar production. Yet, as we continue to take a long term view of our business, GPIC’s esteemed Board of Directors and Executive Management accredited the company’s 2040 Strategy which encapsulates a bold new path for the company’s future. The ambitions of this long term strategy are grounded in augmenting our feedstock with alternative/green sources; expanding our product portfolio; and exploring business expansion opportunities outside the Kingdom of Bahrain. We are confident that this challenging new vision will open the next chapter of success for GPIC, supported by the company’s remarkable team and Board of Directors.

The wisdom and informed guidance of my fellow members of the Board of Directors has been instrumental in shaping GPIC’s exciting new future. I would like to take this opportunity to thank HE. Mr. Shafi Taleb Alajmi and HE. Mr. Salem Ali Alazmi as outgoing Board members, for their outstanding contributions to GPIC’s success during their tenure. It is also my privilege to welcome HE. Mr. Ahmed Alrashdan and HE. Mr. Khalid AlAjmi, who bring with them a wealth of knowledge and experience as the new incoming Board members.

Our deepest appreciation is also extended to our honorable shareholders – Bapco Energies of the Kingdom of Bahrain, SABIC Agri-Nutrients Investment Company of the Kingdom of Saudi Arabia and the Petrochemical Industries Company (PIC) of Kuwait, for their continuous support and encouragement. We appreciate your confidence and remain committed to delivering value through GPIC’s continued prosperity.

Our achievements would not have been possible without the outstanding support and guidance of the Kingdom of Bahrain’s wise Leadership, His Majesty King Hamad bin Isa Al Khalifa, may God protect him; His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and Prime Minister, may God protect him; and His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty’s Representative for Humanitarian Works and Youth Affairs, and Chairman of Bapco Energies, may God protect him; whose progressive vision and policies have formed the bedrock upon which companies like GPIC have been able to thrive. We are all very grateful for this and proud to contribute to the national success and prosperity.

Finally, I would like to extend my deep gratitude the Chief Executive Officer of GPIC, members of the Executive Management and all our employees for their loyalty, dedication, and determination to navigate through the many challenges. These are the ingredients that have turned GPIC’s ambitions into a reality, with the company poised for much more success in the years to come.

Gulf Petrochemical Industries Company Annual Report 2023

Chief Executive Officer’s Message

Yasser Abdulrahim Alabbasi Chief Executive Officer

Board of Directors and Executive Management

Board of Directors

Eng. Fahad M. Al-Battar Board Member

Eng. Kamal Bin Ahmed Mohammed Chairman

Eng. Abdulrahman A Shamsaddin Deputy Chairman

Shaikh Fahad Bin Salman Al Khalifa Board Member

Eng. Salem Ali Alazmi Board Member (Until October 2023)

Mr. Ahmed M. Alumar Board Member

Eng. Hamad Dekheel Alsubaie Board Member

Eng. Shafi Taleb Alajmi Board Member (Until October 2023)

Mr. Ali Moosa Shafiee Board Member

Mr. Khalid AlAjmi Board Member (From October 2023)

Mr. Ahmed Alrashdan Board Member (From October 2023)

Executive Management

Yasser A.Rahim Alabbasi Chief Executive Officer (CEO)

Fadhel Malalla Alansari Executive Advisor

Jehad Ali Khalfan Executive Financial Advisor

Tariq Hadi Albastaki Information Technology Manager

Bader Mohammed Almansoori Plants Operation Manager

Abdulmunem Hubail Alnajar Procurement & Warehousing Manager

Jassim Ahmed Darwish Executive Technical Advisor

Dr. Omar Naser Al Bastaki Finance & Marketing Manager & Secretary to the Board

Khalid Yusuf Al Bin Ali Safety, Security, Health & Environment Manager

Nader A.Rahim Alabbasi Maintenance Manager

Najat Mohamed Sharif HR & Corporate Communications Manager

Jamal Ali Alshawoosh Technical Services Manager

Adnan A.Razaq ALMahmood Deputy Chief Executive Officer - Support

Gulf Petrochemical Industries Company Annual Report 2023

Vision, Mission and Corporate Values

Vision

To become a leader in chemicals and agri-nutrients that pursues excellence and sustainability

Mission

Manufacture and deliver sustainable chemicals and agri-nutrients and continuously pursue profitable growth

Corporate Values

• Excellence

• Resilience

• Ethics

• Creativity

• Innovation

• Teamwork

Performance Indicators

Ensuring equal opportunities and supporting the advancement of women

10,000

mangrove trees have been planted inside the company’s complex

39.9 Million

working hours without lost-time accidents up to 31 December 2023

Achieving 48.8 million metric tonnes of total production of ammonia, methanol and urea since 1985

Gulf Petrochemical Industries Company

Annual Report 2023

US$ 6.120

US$3.5 Billion has been paid to shareholders as dividends

46,051 students

from 613 schools have benefited from Environmental Awareness Lectures delivered by GPIC employees since 2001

Billion has been invested in the Bahraini economy since its establishment

More than a million fish

have been released into

2,603 loaded cargo ships have been exported to countries around the world since 1985

Awards and Certificates

Gulf Authorized Economic Operator (AEO) Certificate from Ministry of Interior Customs Affairs

Dubai Chamber of Commerce CSR Label

“Minaei” Award - Industrial jetties from Ministry of Transportation and Telecommunications’ Ports and Maritime Affairs

HRM Summit Award – Employer of Choice

HRM Summit Award – Best CSR Practices

RoSPA’s Life President’s

2023

as recognition of long-term proactive commitment to improving safety standards across the region from the United Kingdom’s Royal Society for the Prevention of Accidents (RoSPA)

INJAZ Bahrain Volunteer Service Award

Award

Arabia CSR Award – Large Business Category from Arabia CSR Network

Community Awareness Award from Gulf Petrochemicals & Chemicals Association (GPCA)

GCC GOV HR Summit AwardInnovation in Employee EngagementPrivate Sector

Gulf Petrochemical Industries Company Annual Report

Corporate Governance

Principles

Company policies

Company

Corporate Governance

Plants Operations

Main Highlights

Production Figures

Years

Years

Plants Operations

Management systems were followed rigorously throughout the year. They were audited by both internal and external auditors and the performance was judged highly satisfactory at all levels. These systems include:

• Energy Management System

• Integrated Management System

• Enterprise Risk Management System

• Process Safety Management System

• Responsible Care

• Cyber Security

Export 2023 (metric tonnes)

Ships loaded during 2023

% of Exports

Maintenance

Maintenance

Major Jobs Executed

1. Replacement of Ammonia & Methanol Loading Arms at Wharf.

2. Maintenance of Desalination Plant I & II activities are completed.

3. All PM maintenance activities are completed as per Winter Schedule.

4. Ammonia Export Vapor line repair works are completed.

5. Replacement of floor coating at Urea Jetty.

6. Power brushing & Painting of Transfer tower, export conveyor & Ship Loader (In progress).

7. Catalyst Replacement of R-9601 & R-9602 at Urea Plant.

8. Granulation Unit: Granulation washing activities were completed 16 times from the beginning of the year up to date.

9. Installation of Solar Lighting at the employee’s car park at GPIC Complex. (In progress).

Technical Services

Capex Projects

1) Replacement of two Process Gas Coolers (PGC) (E-0301 & E-1201)

2) Replacement of obsolete Fans for the Fin Fan Coolers

3) Replacement of Granulation Section Heat Exchangers

4) Procurement of Operator Training Simulator for Ammonia, Methanol, Urea & Utilities plants

5) Procurement of New Urea High Pressure Stripper (E-8201)

6) Replacement of obsolete 3.3Kv Switchboard 61MS5-1 at Substation#5 along with extension of its building to meet NFPA standard

7) Upgrade of obsolete Emergency Shutdown System’s Central Processing Units(CPU) and Digital Output cards with enhanced diagnostics and logic for Ammonia, Methanol & Utilities plant

8) Installation of 600Kw Solar System at GPIC employee car park shed structure

9) Industry 4.0 Initiatives & Projects

Technical Services Laboratory

Sales & Exports

International Markets

Future Forecasting

Procurement & Warehousing

Human Resources and Development

414 Training programmes

Provided by the E-Learning center in various fields.

Human Resources and Development

In-person and virtual training courses

Internal and external training courses

Information Technology and MANARAH Journey

Enterprise Risk Management & Business Excellence

Safety, Security, Health and Environment

Safety,

Security, Health and Environment are our top priorities

Safety, Security, Health and Environment

Summary of safety, security, health and environment performance

The Company’s achievements in the field of Safety Health and Environment (SHE)

A There were no Level 1 or Level 2 environmental or safety incidents reported, nor were there any security or safety loss-of-time incidents.

A The project to install early detection devices for gas leaks was successfully completed.

A Radiation License obtained for X-ray machines and radioactive sources.

A The waste recycling process continued, and 9.3 tonnes of paper, cardboard, plastic, and aluminum were recycled.

A As part of emergency preparation plans, 23 plans were prepared to combat fires and leaks, including high-risk scenarios, and 16 safety, fire and environmental exercises and 8 security exercises were carried out as part of emergency response training.

Gulf

Waste management

1,116

tonnes tonnes tonnes tonnes

38

Sustainability

Environmental and Social Best Practices

Youth Development

Environmental and Social Best Practices

8th Edition of the GPIC Award for Environmental Research

Environmental and Social Best Practices

Environmental Protection

Encouraging Physical Exercise