Transforming Times / Annual Review 2015

Annual Review 2015 Transforming Times1

Transforming Times / Annual Review 2015

Annual Review 2015Transforming Times

2


His Royal Highness PrinceKhalifa Bin Salman Al Khalifa

The Prime Ministerof the Kingdom of Bahrain

His Majesty KingHamad Bin Isa Al Khalifa

The Kingof the Kingdom of Bahrain

His Royal Highness PrinceSalman Bin Hamad Al Khalifa

The Crown Princeof the Kingdom of Bahrain andDeputy Supreme Commander

and First Deputy Prime Minister


2

ASRY(Arab Shipbuilding & Repair Yard)P.O. Box 50110Hidd, Kingdom of BahrainTel: +973 17611111Fax: +973 17670236

ASRY Ship Repair DivisionP.O. Box 50110Hidd, Kingdom of BahrainTel: +973 17611111Fax: +973 17670236

ASRY Offshore Services DivisionP.O. Box 50110Hidd, Kingdom of BahrainTel: +973 17614119Fax: +973 17674913

ASRY New Construction & Engineering DivisionP.O. Box 50110Hidd, Kingdom of BahrainTel: +973 17611111Fax: +973 17670236

www.asry.net

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Contents

Transforming Times 4

Chairman’s Message 6

Board of Directors 10

Chief Executive’s Message 12

Performance Summaries 16

Management Team 18

Ship Repair Report 20

ASRY Offshore Services Report 24

New Construction & Engineering Report 26

Organisation Report 28

Human Resources 28

HSSEQ 29

Health 29

Safety 30

Security 30

Quality 31

Corporate Communications 32

Worldwide Agents 34


4

Transforming Times

As the global maritime repair market undergoes major changes, ASRY has been required to be equally transformative to respond and remain the regional leader. Through an evolving business model, expansion of its facility mix, and constant focus on customer satisfaction, ASRY’s proactive response to changing market dynamics has ensured its competitiveness throughout the ongoing shift.



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$163mRevenues for 2015, from 193 vessels repaired

Daij Bin Salman Al-KhalifaChairman

Chairman’s Message

It is incumbent upon leaders to ensure that the core values of an organisation are safeguarded.


Financially, ASRY’s 2015 results were not satisfactory,

with revenues reaching $150.9m, below targets,

yet coming from the highest number of vessels to

dock at the yard in a single year ever. This contrast

between moderate revenues and very high vessel

numbers is indicative of the transformations taking

place in ASRY’s business model. Amongst these

commercial and operational alterations, however,

the Board of Directors and myself endeavored to

ground any changes in the company’s core values

of integrity, respect and a dedication to our staff and

our customers.

A major move in this regard was the agreement

with the ASRY Trade Union to roll-out a series of

employee status upgrades over a pre-defined period.

Hundreds of Bahraini and expatriate workers and

supervisors, who have been with the company for

many years, benefited from the agreement, with the

process to conclude the deal being a testament to

ASRY’s focus on maintaining employee satisfaction

as the business streams themselves evolve. It is a

source of pride that such transparent negotiations

can take place in an atmosphere of constructive

cooperation for the benefit of the company and can

stand as a leading example for other companies to

follow in how to effectively and constructively find

mutually beneficial solutions.

Continuing the streamlining of the yards overheads

and expenses is another area in which significant

changes have been required in 2015, but with

Change is upon us, both internally and externally. The maritime industry continues to shift

on a global level, tracking the changes in the worldwide economy, and therefore ASRY

must also acknowledge and adapt to these times of transformation. Throughout periods

of change, however, I feel it is incumbent upon leaders to ensure that the core values and

founding principles of an organisation are safeguarded and carried through.

appropriate adherence to ASRY’s essence. While the

need for greater rationalisation of internal resources

and more efficient cost savings is undeniable as

the industry becomes more competitive, it has

been crucial to effect these strategies with staff and

customer satisfaction at their heart. For example the

organisational restructuring has continued on pace

throughout the year, but manpower reductions have

been achieved through natural attrition, and labour

gaps filled preferentially by internal candidates.

Other efficiencies have also been found in 2015 in

operations and administrative divisions to further

optimise the yard’s expenses, without compromising

our commitment to staff and clients.

The year also brought evidence that our steadfast

commitment to the ASRY way of doing business

is sound in the form of the ‘Shipyard of the Year’

award, won at the Lloyds List Middle East and Indian

Sub-continent awards ceremony in the UAE. The

award recognises a shipyard in the region that has

consistently met the needs of its customers in these

times of tight capacity. The judging committee

said ASRY had shown a commitment to, and

demonstrated, growth in the continued challenges

in the region, securing contracts from some of the

region’s leading shipowners. Naturally the victory

was a strong endorsement of ASRY’s strategy, but

from my perspective the win also validated our

intentions to keep our values consistent throughout

these transforming times.

$150.9mRevenues for 2015from 253 vessels repaired


8

Most importantly, any success ASRY has is due

to a dedicated and highly skilled workforce that

continually demonstrate teamwork and leadership,

and also to the guidance and encouragement from

all the shareholding countries. I, therefore, take this

opportunity to extend my appreciation and gratitude

to all of our shareholders, including the Government

of the Kingdom of Bahrain. I would also like to extend

my sincere thanks to my colleagues on the Board of

ASRY for their continued commitment and support

to the company. ASRY’s entire workforce, including

the management, staff and workers should also

receive recognition for their dedication, hard work

and support without which ASRY would not have

achieved its results in the difficult market conditions.

My sincere thanks also go to ASRY’s sub-contractor

partners and of course our hard-working and highly

capable global network of agents, for all of their

valuable support and co-operation during the year.

I personally extend my appreciation to all those

partnering with ASRY as we transform together for

greater success.

I wish you all a prosperous and successful 2016!

Daij Bin Salman Al Khalifa

Chairman of the Board of Directors of ASRY


Most importantly, any success ASRY has is due to a dedicated and highly skilled workforce that continually demonstrate teamwork and leadership.


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Board of Directors

1. H.E. Shaikh Daij Bin Salman Al KhalifaChairman, Representing the Kingdom of Bahrain

2. Mr. Abdulla Fadhala Al-Sulaiti2nd Deputy Chairman, Representing the State of Qatar

3. Mr. Nasser Bin Ibrahim Al-Fouzan1st Deputy Chairman, Representing the Kingdom of Saudi Arabia

4. Mr. Abdulrazzaq J. ZainalabedinBoard Secretary

5. Mr. Mohamed Hassan Al-MutawaAlternate Member, Representing the U.A.E

6. Mr. Ebrahim Mohamed Abu-Aisha Alternate Member, Representing the State of Libya

7. Mr. Mohamed Bin Abdulaziz Al-JuwaiserAlternate Member, Representing the State of Kuwait

8. Mr. Saeed Mohammed Al-MohannadiAlternate Member, Representing the State of Qatar

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9. Mr. Fadhal Sayed Abbas, Board MemberRepresenting the State of Kuwait

10. Mr. Ahmed Mohamed Al-Ka’abiBoard Member, Representing the U.A.E

11. Mr. Hassan Ali Al-MajedAlternate Member, Representing the Kingdom of Bahrain

12. Mr. Dheyaa Gumar SafarBoard Member, Representing the Republic of Iraq

13. Mr. Sharaf-Eddin Salem BanghaziBoard Member, Representing the State of Libya

14. Mr. Mansoor Mohammed Al-KhudairAlternate Member, Representing the Kingdom of Saudi Arabia

15. Mr. Nils Kristian BergeChief Executive

16. Mr. Adnan Noshee SachitAlternate Member, Representing the Republic of Iraq

1213 14 15

16

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12

Chief Executive’s Message

Nils Kristian BergeASRY Chief Executive

Increased competition and market volatility are the new normal, we must respond appropriatelyand dynamically.


In 2015 this response was gratifyingly validated with

ASRY’s ‘Shipyard Of The Year’ award win at the Lloyds

List Middle East and Indian Subcontinent Awards.

While this award recognises ASRY’s adaptability,

however, the year in general did not meet our targets

in terms of revenues, largely due to the Offshore

market downturn, even in the face of docking more

ships than ever before in a single year.

ASRY is experiencing a shift in its business model.

Historically, revenues were derived almost entirely

from docking large vessels for big projects in the

drydock sequentially. Today, ASRY is a much more

diversified hub, due to one of the largest variety of

facilities in the region – in addition to the graving

dock, the yard now boasts 4km of alongside berth

space, two slipways, and two floating docks.

This wide variety creates new flexible options for

customers to have their vessel accommodated,

for example taking more numerous simultaneous

smaller jobs alongside, and more varied jobs on

the slipways. It’s a faster, more segmented way of

doing business, that brings with it new challenges

for many parts of the organisation, from operations

to marketing. Re-adjusting methodologies and

processes continues to be a large factor in the

yard’s success at manoeuvring the markets shifting

patterns.

Amongst these shifting patterns, ASRY still managed

to break new ground in 2015. In the Navy segment,

for example, 2015 saw new national Navies choose

ASRY in response to an emphasis that was placed

on defence sector repair, as exemplified by the

formation of the Navy, Defence and Industrial

projects department. Grey ships and associated

projects now account for a significant percentage of

the yard’s overall revenue, and looks to continue as

Despite being one of the largest national employers in Bahrain, and one of the busi-

est maritime hubs in the region, ASRY has proved in 2015 it is also adaptable to change.

Myself and the Management team have been eager to recognise going forward that

increased competition and market volatility are the new normal, rather than a market ab-

normality, and to respond appropriately and dynamically.

Amongst shifting patterns, ASRY still managed to break new ground in 2015.

military maritime presence in the region increases.

This is in line with our strategy to support the Navy’s

operating in the region and being their preferred

partner for maintenance support and upgrades. As

well as that we relaunched our New Construction

programme with the signing of a new build contract

to deliver a new Landing Craft to the Bahrain Coast

Guard. By the end of the year, hull completion

was in sight, and negotiations were underway for

a second craft. ASRY’s engineering expertise was

also tapped in Ballast Water Treatment System

feasibility studies, laying deep foundations for future

installations as the ratification deadline gets ever

closer. This demonstrates a unique advantage ASRY

has over its competition, which is the in-house

engineering services which the New Construction

& Engineering (NC&E) division can provide allowing

the yard to offer turn-key conversions and upgrades

to customers.

However, 2015 will mostly be remembered as the

year that the Offshore sector took a downturn,

affecting rig repair projects across the region. As

a result, ASRY Offshore Services had a weak year

in terms of revenue. However, ASRY managed to

maintain its dominant position in the rig repair

segment, still being the market share leader by

securing contracts from our repeat customers. It was,

however, the overall depression in the rig sector that

proved most influential on the yard’s income from

offshore services.


14

A cornerstone in the ASRY’s resilience throughout

the year has been Project Jupiter – the initiative to

be the leader in onsite specialist contractors in the

region, and forming close allegiances with Original

Equipment Manufacturers (OEM) and specialist

services companies. More global names were

selected to join the list of contractors that have a

permanent presence in the yard, further broadening

the availability of the third-party support that

customers need for efficient, cost-effective dockings.

Internally, streamlining continued as part of the

organisational restructuring, with several important

new appointments being made to modernise and

invigorate the management team. The unification

of the yard into a more cohesive collective

made progress, with HR’s implementation of the

restructuring plan, as well as several noteworthy

collaborations with the Trade Unions.

Moving into 2016, the momentum of being named

‘Shipyard Of The Year’, which embodies the year’s

successes, will assist the company in continuing

to transform itself to meet the ever-changing

demands of the market. It will also inspire ASRY’s

workforce to continue their commitment and

dedication, which keeps ASRY as the regional

leader for maritime optimisation. In tighter times

we are reminded of how supportive our customers

– both repeat customers and new – have been of

the yard, as well as the indispensable role played by

every employee in maintaining ASRY’s place as the

region’s preferred shipyard.

Nils Kristian Berge

ASRY Chief Executive


2015 will mostly be remembered as the year that the Offshore sector took a downturn.


16

Main Revenue (US$ Millions)

Number of Vessels Repaired (Ship plus rigs)

171

2011

2011

2012

2012

2013

2013

2014

2014

2015

2015

163

150.9m

161.4m

199.5m

177.1m

167.1m

253

184

193

-6.5%year-on-year

+26%year-on-year

Performance Summaries


Hull Treated (scraping, washing, blasting and painting)(Millions of sq. m.)

Steel Consumed (Tonnes)

4,920

6,920

2011

2010

2012

2013

2014

2015

6,560

4,498

4,950

4,140

7.50m2010

2011 7.50m

2012 9.47m

2013 9.53m

2014 8.30m

2015 8.89m

+7.1%year-on-year

+8.6%year-on-year


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Management Team

1. Nils Kristian BergeChief Executive

2. Rob BryantOffshore Services General Manager

3. Charles MaherShip Repair General Manager

4. Magdy MustafaProcurement & Contracts General Manager

5. Jos GorisOperations General Manager

6. Dr Tariq Al ShabaniASRY Branch General Manager

7. Arran DallCorporate Communications Manager

8. Abdulla Khalil Al-MuraikhiSecurity Manager

9. Thomas DanielInternal Audit Manager

15

7 8 9 10 1112

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10. Abdulrazzaq ZainalabedinBoard Secretary

11. Carl BradshawBusiness Development Manager (AOS)

12. Mona ShowaiterChairman’s Office Manager

13. Sh.Duaij Bin Moh’d Al KhalifaHR & General Services Senior Manager

14. Sauvir SarkarNew Construction & Engineering Senior Manager

15. Badreldin ElsimatLegal Department Manager

16. Mohammed AbdulsalamProduction Manager

17. Satyan LaxmanFinance & IT Senior Manager

18. Adel BoutariHealth, Safety, Security, Environment,Quality Senior Manager

2 4

13 14 15 16 17 18

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Ship Repair Report


Having predicted that pressure on owners maintenance budgets would continue into

2015, the strategy for 2015 was for the ASRY sales team to more aggressively attract

ships for repair and to increase the total number of vessels repaired. This strategy was

implemented effectively with the number of ship repair projects in 2015 increasing

significantly to 243, from 176 in 2014. Dock occupancy also increased to near-full

utilisation, a notable improvement from 2014 and in line with the ambitious target set

for 2015. However, the 38% increase in vessel numbers for the year is not reflected in

revenues from ship repair projects, which only increased 19%. This discrepancy highlights

two interesting trends that form the basis of a paradigm shift in the nature of ASRY’s

business model, which became most apparent in 2015.

The first trend which becomes clear after deeper

examination is that the despite common market

opinion, shipowners actually spent more per

vessel on significant projects (ships either docked

or repaired on slipway in ASRY). This figure was

actually up on 2014 - with a 3.9% increase in average

revenues per vessels in the docks, and 5.4% in vessels

on the slipways - which is a welcome break of trend

considering popular opinion among commentators

that owners are generally spending less.

The second trend is a marked increase in the variety

of type of projects ASRY now repairs. This becomes

most apparent when looking at the alongside

statistics. More vessels were repaired alongside than

in any other facility in ASRY, yet the total revenues for

those projects was, not unexpectedly, the lowest of

all the facilities.

From these two trends it can be seen that a paradigm

shift is taking place in ASRY’s business model, and

the fundamental aspect of the shift is that the project

mix at ASRY is diversifying. Of all the year’s projects,

a higher proportion than ever before are smaller-

scope projects, which tend to take place alongside,

in ASRY’s newly expanded berth capacity. Previously,

ASRY’s primary revenues stream came from large

vessels, with large projects, docking in ASRY’s

drydocks. Today, ASRY is reacting to new market

conditions by having a much greater variety in its

mix of projects occurring simultaneously. Instead of

large vessels with large jobs, ASRY is taking a wide

range of vessels, with a broad range of jobs.

A greater project mix is ASRY’s response to a

market that is more competitive in this region

than previously, and comprised of vessels that in

general have less major maintenance requirements

due to being younger. The world fleet’s average

age is constantly reducing as new regulations and

requirements makes it increasingly more difficult to

trade older ships. Occupancy is at its highest point,

but more importantly diversity of scopes is also

at its highest.

Within this overall shift that took place in 2015, three

other highlights defined the year for ship repair, the

first of which was the signing of a block agreement

with Kuwait Oil Tanker Company (KOTC) for the

exclusive maintenance rights to 19 vessels over a

two and half year period. The agreement, the largest

signed by a Shipyard in the Arabian Gulf, was worth

an estimated $ 33 million, and will eventually see

KOTC dock the majority of its fleet exclusively at the

shipyard. By mid-2017, KOTC will have seen 14 oil

product tankers, 4 LPG tankers, and one OSV dock

at ASRY for full maintenance work-ups including full

hull and tank blasting and coating.

The number of ship repair projects in 2015 increased significantly to 243, from 176 in 2014.


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The second highlight of the year was a consolidation

of navy work in 2015, as new countries joined the

US, UK and Bahrain as having ASRY as their navy

repair yard of choice in the region. Having identified

a gap in the regional market for quality military

maritime repair in 2014, which perfectly fitted ASRY’s

core skill set, the yard formed a dedicated division.

In 2015, the yard’s navy expertise attracted more

projects than previously as well as from more navy

fleets, including the German Navy, which brought

a Bremen-class frigate in to rectify machinery

mounting issues. Three reasons have been identified

as the cause of this increase in interest. Firstly the

region is experiencing a surge in military presence

from international navies for political reasons.

Secondly, Bahrain hosts the UK Maritime Component

Command (UKMCC) headquarters, which is proving

to be the most convenient hub for visiting fleets.

Thirdly is ASRY’s reputation; strong word of mouth

from previous completed projects is creating new

leads amongst the incoming crews.


The third highlight of the ship repair year was

the high complexity of several projects that ASRY

was chosen to complete. For example, Valentine

Maritime chose ASRY for the sponsoning of their

DLB-1600 Derrick Laying Barge, which increased

the beam from 31.7m to 40.3m within only a 45-

day timeframe. To hit deadline and budget, ASRY

pre-engineered and pre-fabricated the sponsons

in advance. Another stand-out project was

Odfjell choosing ASRY to upgrade the propulsion

systems on three of its chemical tankers, to a

new energy efficient concept which will reduce

fuel consumption and emissions by 20% per

vessel. The conversions involved retrofitting new

energy efficiency propeller blades and rudder

bulbs, as well as modifications to main engines,

turbochargers and shaft generators. Another

highlight of the year was Saudi Aramco choosing

ASRY to complete a major modification package on

their OSV Rimthan II, including the installation of a

75-tonne Liebherr deck crane, plus all engineering

calculations, design analysis, inclining experiments,

and stability booklet testing.

ASRY’s agent network remained a vital part of

the yard’s global marketing presence, with the

company’s strong reputation being kept in the mind

of international owners largely through their efforts.

The network saw a new addition in the form of

Shiprepairers & Shipbuilders Ltd, which signed an

agreement to exclusively market ASRY’s products,

services and facilities to the UK shipping market.

Dock occupancy increased to near-full utilisation in 2015.


24

ASRY Offshore Services Report


However, of the shipyards in the region that offer

offshore repair services, ASRY fared comparatively

well with business coming from well-established and

long-term customers of ASRY’s. The highest number

of projects came from Shelf Drilling, who had four

projects throughout the year. These included the

highlight of the High Island II, on which 200 tonnes

of steel replacement was done, as well as pipe

replacements, refurbishments of accommodation,

helideck, deep well RWT, and cranes, lifeboat

installation and more. ASRY also managed to attract

older customers who had previously used ASRY but

used other facilities in recent years, such as Rowan

Companies, who brought back one of their assets

towards the end of the year as a testament to the

long-term relationships ASRY forms.

Alternative revenues streams from the Offshore

sector also saw some progress in 2015. ASRY

completed its first land rig refurbishment project

since recently pursuing business in that market,

and with one of the largest land rig operators

in the world. The scope included project

management, engineering, procurement, and

safety management, with the a variety of complex

deliverable including raising the rig substructure

by 5 feet, adding a 100-tonne Blow-Out Preventer

(BOP) handling system, adding a 1600 HP mud

pump and Caterpillar generator set, installation

of a complete foam firefighting system, plus

more. In addition to the move into the land

rig market, AOS’s diversification into industrial

manufacturing progressed in 2015 with the

completion ASRY’s involvement in the Camelia

project in Saudi Arabia. ASRY was commissioned

2015 saw the effect of record low global oil prices on the offshore industry in the Arabian

Gulf deepen. Globally and regionally rig owners – AOS’s client base – faced multiple

challenges leading up to and during 2015 which saw any major refurbishment of their

assets became too costly, both in terms of the repairs themselves, and the cost of time

lost producing during repair. Due to this, revenues for AOS in 2015 were considerably

lower than 2014.

AOS also re-affirmed its safety status in 2015 by reaching the safety milestone of exceeding 3.5 million manhours without having a Lost Time Incident (LTI).

to design, procure and fabricate a significant

number of stainless steel hoppers, pipe spools,

valves, flanges and fittings, for a new catalysts

production facility called Camellia, which is being

built by Axens Catalysts Arabiya, a company

specialised in process licensing and manufacture

and sales of catalysts and absorbents in the fields

of refining, petrochemical, gas and biofuels. The

contract included delivery, erection, installation

and final commissioning according to As-Built

engineering drawings. This, combined the land rig

project, was a step into more land-based services

in the Kingdom of Saudi Arabia.

AOS also re-affirmed its safety status in 2015 by

reaching the safety milestone of exceeding 3.5

million manhours without having a Lost Time

Incident (LTI). The landmark achievement, which

includes over two and half years without a rig repair

LTI, comes amid an ongoing optimisation of the

Safety department and focus on quality excellence

that the yard has made one its top priorities.

2016 has a more optimistic outlook as rig owners

who have delayed maintenance work on their

assets for as long as possible are required to do

repairs to keep them class-approved and maintain

effective operation.


26

New Construction & Engineering Report

2015 was another year of progression for the newest division, the New Construction &

Engineering (NC&E) Division, with the new diversification continuing to gain traction in

the regional market. Revenues increased and, importantly, the first newbuild contract

was secured. This contract pushed up the ratio of the divisions revenues acquired

independently rather than through projects already in yard brought by the Ship Repair or

the Offshore Services division. This is a good indicator of the increasing value the division

has in the income mix of the yard as a whole.


The highlight of the division’s year was the signing

of the agreement with the Bahrain Coast Guard to

design and construct a new landing craft for the

transport of vehicles, potable water, and fuel. The

contract was ASRY’s first newbuild contract since

launching the division, which was specifically tasked

with growing the new construction programme at

the yard. Progress throughout 2015 was on schedule

and budget with the hull erection and construction

completed by the end of the year, to be followed

by piping, machining outfitting, superstructure

construction, and then water-launch. Delivery of the

vehicle is expected to be on schedule in 2016.

On the engineering side of the division, a new variety

of jobs was seen being won by the division in 2015,

demonstrating the diversity of its capabilities, and as

well as its growing reputation. Three new kinds of

projects dominated the NC&E’s workload.

The first type of job was projects concerning

Simultaneous Operations (SIMOPS) of Jack-Up

rigs. With a view to improve safety, Saudi Aramco

require drilling contractors to ensure protection

of well-heads from falling objects. Therefore extra

engineering works were required to meet these

regulations, which ASRY carried out for rigs owned

by Saipem and Egyptian Drilling Company, which

took the form of foldable platforms to ensure

Aramco standards were met. With multiple packages

completed successfully, ASRY’s SIMOPS solutions

have now been well-received by the market, and

are expected to become a fixture in the divisions

project line-up.

A second type of job to gain momentum in 2015 was

engineering Low Sulphur Marine Gas Oil (LSMGO)

packages. Based on Marine Pollution (MARPOL)

requirements limiting sulphur oxide emissions

within Emission Control Areas (ECA) areas from 1st

Jan 2015, a number of ASRY’s customers decided to

switch over to LSMGO when working in ECA areas.

To meet their needs, ASRY carried out onboard

inspections to identify changes in the ship’s piping

system and thereafter produced the necessary

basic and production engineering. This included

being responsible for class approval for the basic

engineering work, as well as implementing the

packages through its ship repair division. Amongst

other owners, KOTC were one of the regional leaders

to choose ASRY for this re-engineering work on their

complete fleet of tankers.

The third highlight project rounding out NC&E’s

diverse engineering scopes in 2015 was the design

and construction of a bespoke mooring buoy,

required for mooring a Floating Storage Oil (FSO)

tanker (which ASRY converted). ASRY met the

challenge by designing the calm mooring buoys

and thereafter fabricating them so that these could

be loaded on the FSO tanker and taken to the point

of mooring. Each buoy - 5.6m in diameter - was

designed by ASRY to meet structural and stability

requirements. Various fittings, such as quick-release

hooks and chain-stoppers to handle the mooring

loads, were incorporated in the buoy. Once the

design was class-RINA-approved, it was fabricated by

ASRY and lashed on board using ASRY’s engineering’s

lashing engineering studies.

Engineering support allowed conversion projects

to be taken on a turnkey basis by the repair

divisions. Among the many projects undertaken, the

sponsoning of a pipe laying barge, a large offshore

crane installation on a Saudi Aramco vessel and

conversion of ASRY’s AOS Barge for testing cranes up

to 1800 Tonnes were noteworthy.

Looking forward, the division is optimistic that

one or more pending new construction potentials,

including specialised vessel orders, will materialise

in 2016. And with the variety and complexity of

engineering projects under discussion, including

upgrades, retrofits, and possible gas-based projects,

2016 should continue the expanding portfolio and

revenues of 2015.

On the engineering side of the division, a new variety of jobs was seen being won by the division in 2015.


28

Organisation Report

Human Resources

The primary success of the Human Resources

(HR) division in 2015 was the roll-out of a series of

initiatives to boost ASRY’s internal reputation as an

employer of choice. Strategies such as the prioritising

of internal candidates for positions over external

candidates, and improved clarity and transparency of

employee administration, meant that retention rates

for 2015 improved markedly over the previous year.

Other achievements included the near-completion

of the implementation of an organisation-wide

restructuring project. This task, completed in-house,

saw all divisional structures (except Operations

Division) completed, approved, and updated in the

HR management system. Other highlights included

the overall refining and automation of HR related

processes that have both benefited the company

in terms of work efficiency and reduction in errors.

Additionally, the HR has been eager to organise

various training programs for ASRY’s 1778 employees,

of whom 40% are Bahrainis. In-house and outside

training courses and workshops were organised, in

which some 15,363 company employees participated

in more than one course. The total cost of training

programs in 2015 was approximately $975,000.


HR has been eager to organise various training programs for ASRY’s 1778 employees , of whom 40% are Bahrainis.

HSSEQ

HealthASRY’s Medical Centre is the heart of the ASRY’s

health practices and development. As part of the

centre’s mission to improve patient services and staff

quality of life, the Medical department maintains

a calendar of events to promote health and well-

being. In 2015, these included International Noise

Awareness Day as part of the hearing conservation

program in association with Center of Hearing,

Ohio USA; the World Health Day event entitled

“Food Safety” in association with the Public Health

Department of Bahrain’s Ministry of Health; a blood

donation drive in collaboration with Salmaniya Blood

Bank, with approximately 100 employees generously

participating; and a Nurses day was organised to

celebrate and highlight their continuous support.

As part of an expansion drive, the Medical Center

is also planning to extend its services to all the

Sub-Contractors in Primary Care and Occupational

Healthcare. Also in 2015, the installation of new

medical software began, and is expected to be

completely integrated by the end of 2016 which will

enable for statistical analysis of various diseases and

financial management of the patients’ medical costs.


30

SecurityASRY’s Security is managed by a dedicated

department that in 2015 consisted of 57 staff

members, with ongoing activities to dynamically

maintain and improve the yard’s security profile. In

2015, a total of four in-house and external security

drills were conducted in February, May, August

and December in cooperation with other industrial

organisations in Bahrain. As well as this, three types

of audits were conducted in the Security Department

during 2015, including an internal security accounts

audit, and a security self-assessment by Management

Audit Division for ISO 28000, which covered security

operating procedures. Twelve training courses

and workshops were organised during the year,

covering ISO 20858 Security Outlook, Supply Chain

Management, ISO 28000 Security Outlook, Risk

Management, in addition to an advance training

course for security personnel skill development.

Also, notably, the International Ship and Port Facility

Security (ISPS) Code certification, issued by the

Government of Bahrain, was maintained in 2015.

SafetyThe Fire and Safety Department organised a total

of 91 drills on fire, rescue, evacuation, oil spill and

road accidents. They also participated in a number

of events organised by Civil Defence Directorate,

received visitors from various governmental and

non-governmental establishments, conducted fire

and evacuation drills for all ASRY facilities every six

months, held refresh courses for firefighters every six

months and developed fire and rescue equipment.

The effect of the ongoing efforts of the Fire and

Safety programme saw an 18% reduction in its lost

time injury frequency (LTIF), exceeding the target

of 10% set by Industrial Safety Committee, through

active participation of all personnel in the yard. This

was supported by ongoing training courses in which

Department members participated more than once

in more than one course. Almost 20 in-house and

outside training courses were held in cooperation

with the Civil Defence Directorate.


QualitySupported by Senior management, the Management

Systems Department played a significant role in

enabling ASRY to successfully meet and exceed ISO

quality certification requirements in 2015, such as the

American Petroleum Institute certificate, API Spec

Q1 9th, Information Protection Management System,

ISO 27001: 2012, Quality Management System, ISO

9001:2008, Environment Management System, ISO

14001:2004, Supply Chain Security Management

System, ISO 28000:2007, Occupational Health &

Safety Management Assessment Systems, OHSAS

18001:2007, and Ports Security System, 20858:2007.

DNV GL, an international leading qualification

certification granting authority, in 2015

recommended ASRY for retention of ISO

certifications in recognition of the company’s

commitment to quality, environment and

occupational health and safety standards. However,

such retention is the result of all-year-round efforts

by every individual of ASRY. The recommendation

was made upon an independent, specialised audit

process scheduled by the Management Systems

team together with all other company departments.

The team performed 40 internal audit processes that

covered all company departments and the 45 sub-

contractors of ASRY.

In 2015, the Management Systems Department also

began a review of a package of rules and regulations

as part of a comprehensive upgrading plan in

accordance with ISO requirements. The Department

has also organised induction and training courses

for company employees on various position

classifications, notably, “Integration Management

System”, which is an interactive objective-based

workshop. More than 250 employees of various

company sectors and departments participated in

these workshops during 2014/2015.


32

Corporate CommunicationsThe primary objective of ASRY’s corporate

communications division – to manage, maintain

and improve ASRY’s reputation on a local, regional,

and global level – received several major boosts

throughout 2015. The most important was the

naming of the yard as the Shipyard Of The Year

at the Lloyds List Middle East and Indian Sub-

Continent awards. This victory was converted

from four nominations across the annual awards

season, including the Safety category at the same

awards programme, and the Ship Repair Innovation

category and Corporate Social Responsibility

category at the Seatrade Maritime Awards in

the UAE. In addition to this, the Chairman of the

Board of ASRY was awarded the Seatrade Maritime

Industry Award at the recent Seatrade Maritime

Awards Middle East Indian Sub-continent and Africa

(MEISA) in Dubai. The award honours an individual

that has made an exceptional contribution to the

maritime sector in this region.

Other activities that had a positive effect on

the firm’s reputation were three-fold. Firstly the

company collaborated with their local agents in

Singapore and Oslo to exhibit at the important

trade shows taking place in those cities, Sea

Asia and Nor-shipping respectively. Secondly,

the division organised two significant corporate

hospitality events: ASRY’s hosting of clients at

the Bahrain Formula One Grand Prix, and the

ASRY Awards for Best Customers & Agents in St

Tropez. Thirdly, on a local level, ASRY’s calendar

of community and staff events continued to show

variation and creativity in finding new ways to

demonstrate the yards gratitude to the community

and labour force that are the foundations of the

firm. Over twenty individual events were arranged

ranging from the ASRY Family Day for several

thousand staff and families, to social support

events such as Cancer Ward donations, and

Disabled Children’s outreach events.



34

Worldwide Agents

1 - USA, CANADA, BAHAMAS,

BERMUDA & COSTA RICA & MEXICO

Vogler Marine Agencies L.L.C.

79 Old Clinton Road,

Building 4 Flemington,

New Jersey 08822 5717, U.S.A.

T: +1 908 237 9500

F: +1 908 237 9503

E: [email protected]

2 - BRAZIL

Sonave-Comercio E

Representacoes Ltda Av.Rio

Branco 50-8˚ Andar CEP 20090-002

Rio De Janeiro, Rj, BRAZIL.

T: +55 21 2223 1332

F: +55 21 2233 8250


and [email protected]

3 - UNITED KINGDOM

Ship Repairers & Shipbuilders Ltd.

Broadwell house, Broadwell UK.

GL73QS

T: +44 1367 860 050

F: +44 1367 860 474


4 - BENELUX

Ruysch Technical Agencies,

Oostzeestraat 3, 7202 CM Zutphenm,

NETHERLANDS.

T: +31 575 515 744

F: +31 575 515 750


5 - GERMANY

Zoepffel and Schneider GmbH,

Alter fischmarkt 5, D-20457,

HAMBURG.

T: +49 40 879 7850

F: +49 40 879 78520


6 - ITALY / MONACO /

SWITZERLAND

Victoria Maritime Services

7, Avenue des Papalins,

MC 98000 Principaute, De Monaco,

MONACO.

T: +377 99 99 5160

F: +377 99 99 5161


7 - DENMARK

Falck Formco Aps,

Hans Edvard Teglers Vej 7,

DK-2920 Charlottenlund

DENMARK.

T: +45 39 648511

F: +45 39 632840


8 - SWEDEN

Klaving Shipping AB

Harstena, SE-610 42,

Gryt, SWEDEN.

T: +46 123 420 51

F: +46 123 420 64


9 - NORWAY

ECA Shiprepair AS,

Nedre Vollgt. 1, 0158, Oslo,

PO Box 1246 Vika, 0110

Oslo, NORWAY.

T: +47 22 402740

F: +47 22 402741


10 - GREECE

Resolute Maritime Services Inc.

233, Syngrou Avenue

17121, N.Smyrini, Athens, GREECE.

T: +30 211 182 9000

F: +30 211 182 8991


11 - TURKEY

Cerrahgil A.S. Abdi Ipekci Caddesi

No.33, 80200 Tesvikiye, Istanbul,

TURKEY.

T: +90 212 232 4700

F: +90 212 231 0035


12 - CYPRUS

W.S.R. Services Limited

Ayias Fylaxeos 234, Amalias Court

2nd Floor, CY5047, P.O. Box 58019

3730 Limassol, CYPRUS.

T: +357 25 344418

F: +357 25 344419



13 - PAKISTAN

Marine & Industrial Consultants

105/11 Khayaban-e-Muhafiz

DHA Phase 6, Karachi-75500

PAKISTAN.

T: +92 21 5311019-21 (3 lines) /

5880804 / 5880794

F: +92 21 5311022 / 5852399


14 - INDIA

Interlinks Marine Enterprises Pvt.

Ltd., 101 HDIL Towers, Anant Kanekar

Marg, Bandra (East)

Mumbai 400 051. INDIA.

T: +91 22 6725 6437

F: +91 22 6725 6471


15 - SINGAPORE/ MALAYSIA

Coway Marine Services Pte Ltd

211 Kaki Bukit Ave. 1

Shun Li Industrial Park

SINGAPORE 416040

T: +65 6343 8681

F: +65 6343 8682


16 - HONG KONG

Marland Technical Services Ltd.

Room 702A, Fortress Tower

250 King’s Road, North Point,

Hong Kong, SAR CHINA.

T: +852 2571 9322

F: +852 2806 3153


17 - JAPAN

Marinexx

Hitachiya Bldg 3F, 5-7-14,

Shinbashi, Minato-Ku, Tokyo

105-0004 JAPAN.

T: +81 (0)3-5405-4231

F: +81 (0)3-5405-4233


18 - CHINA

Rengtong Marine Co. Ltd.,

177, Lane 2008, Chengshan Road,

Shanghai – 200125, CHINA.

T: +86 21 33834918


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Documents

Transforming Times / Annual Review 2015