CEO Message
2021 proved to be a year that tested our true resilience and determination in striving for excellence, amidst the unprecedented COVID-19 global pandemic that created very challenging conditions across the global shipping and maritime industry. Our business continuity plans were put to the test, along with the mettle of our people in facing adversity. I am proud to say that we have weathered the storm and emerged stronger, continuing to pursue operational excellence and following through our long-term growth strategies as we strive towards our vision.
Our excellent financial performance in 2021 is the direct result of our concerted efforts and commitment to deliver value to our stakeholders and customers with a net profit of QR 1,354 million achieved, a 16.7% increase against the previous year at QR 1,161 million.
The year witnessed further expansion of our ship management capabilities with the addition of two newbuild LNG vessels to our in-house commercial and technical management – “Global Star” and “Global Sea Spirit”. Featuring advanced safety, containment and propulsion technology, these vessels will allow us to provide greater fleet capacity and flexibility to our customers and significantly contribute to our efforts to reduce our carbon footprint and operate in a sustainable manner as we continue to grow our global shipping fleet.
Strategic alliance with renowned partners has been fundamental to our success and we are always looking for opportunities to grow our international presence, diversify our business portfolio and maximize returns for our shareholders. Staying true to this, Nakilat is exploring options and expanding its presence in the international Floating Storage Regasification Units (FSRU) market, one of the fastest growing LNG business segments in recent years. Nakilat is tactfully capitalizing on our own expertise in LNG transportation to explore possible collaborations in this sector, which would give us a greater competitive edge in the dynamic global LNG market.
With the ongoing pandemic dictating the way we work and live for most part of the year, Nakilat remained strongly committed and focused to ensure the health, safety and wellbeing of our people. We continued to implement extensive safety and hygiene measures in line with the governmental regulations by adopting remote working, physical distancing and investments across our digital infrastructure, systems, and security enhancements at our worksites and onboard our vessels. I applaud the incredible energy put forward by the team in the face of such adversity to safeguard the lives of our people, safety of our workplace, and integrity of our operations. Our efforts did not go unnoticed as Nakilat was awarded the ‘Sword of Honour’ for the third consecutive year by the British Safety Council (BSC) for excellence in safety, health and environmental management.
Sustainability is at the very heart of our operations at Nakilat and plays a big part in how we conduct our business. We published our first ESG report in 2021, which has been meticulously developed in alignment with the goals espoused by Qatar National Vision 2030 and the United Nations Sustainable Development Goals (UNSDG). The launching of our 2020 ESG report is an essential step in complementing the company’s efforts in operating transparently and responsibly. The report highlights the various ways in which we are enabling sustainable growth across our operations to positively impact our people, the community and environment, while creating value for our stakeholders and shareholders.
Nakilat was presented with the Annual Qatarization Crystal Award for ‘Supporting Qatarization’ at the Energy sector’s 2020 Strategic Qatarization Plan ceremony, bearing testament to our prudent efforts to create a sustainable talent pipeline for the country. We also initiated a joint development project (JDP) to elevate software reliability and maintenance during vessel operations and launched a Recommended Practice (RP) for the shipping industry, in collaboration with partners DNV, leading yards and suppliers. As a responsible organization, we are keenly aware of the importance of giving back to society and preserving the natural environment and conduct a number of such community engagement and environmental initiatives throughout the year.
The management and I are grateful for the steadfast and relentless spirit shown by our people who pushed through these tumultuous times to uphold our mission to provide shipping and maritime services in a safe, reliable and efficient manner. I take this opportunity to give a special mention to all seafarers onboard our vessels who have persevered through difficult times and shown extraordinary determination in the face of all odds. Your passion and dedication have been truly inspirational and integral in keeping our global operations running smoothly.
As we move into a new normal, there is still much uncertainty that lies ahead. With the tenacity that our people have shown and solid foundations of our vision, mission and shared values, I am confident that we will be able to handle any challenge the future may bring. Moving forward, we will continue to capitalize on growth opportunities and deliver value for our shareholders while scaling new heights to firmly establish ourselves as a global leader in energy transportation and maritime services.
Eng. Abdullah Al-Sulaiti
Chief Executive Officer
EXPLORE THE ANNUAL REPORT
Corporate Strategy
Corporate Governance
Corporate governance is an ethically driven business process that is committed to values aimed at enhancing an organization’s wealth generating capacity. This is ensured by taking ethical business decisions and conducting business with a firm commitment to values while meeting stakeholders’ expectations. At Nakilat, it is imperative that our company affairs are managed in a fair and transparent manner. This is vital to gain and retain the trust of our stakeholders.
Nakilat is continuously adopting best corporate governance practices, since it is deeply perceived as the heart of the successful running of our organization, while sustaining a long-term growth and promoting trust among the shareholders, investors, customers, employees and all other stakeholders. Nakilat’s corporate governance framework ensures effective engagement with our stakeholders and helps us evolve with changing times. The Board of Directors ensures the implementation of strong corporate governance practices, which safeguards the sustainable development and performance of the company, in accordance with Nakilat’s mission and vision to be a global leader in energy transportation and maritime services.
Our Board of Directors considers the interests of our shareholders as well as our other stakeholders through receiving timely and quality reports that contain condensed information and materials for them to make well-informed decisions and to develop business strategies for short and long-term growth and overall sustainability of the organization. Frequent engagement with our shareholders through our investor conferences, investor meetings, and IR conference calls has sharpened Nakilat’s focus on our core priorities, strategic vision and governance. Nakilat continues to listen to all its shareholders. Nakilat sees governance as a framework to align the interests of all our stakeholders behind its purpose to unlock the power of delivering clean and reliable energy to enhance quality of life for everyone around the world.
Recognizing the relationship between good governance and sound financial performance, Nakilat strives to adhere to leading and best governance practices and complies to Qatar Financial Markets Authority (QFMA) governance guidelines. Nakilat’s corporate governance report has been prepared in compliance with QFMA governance code and is shared with all concerned stakeholders. It is also accessible to all of the company’s stakeholders and shareholders in the Investor Relations section of Nakilat’s website.
Sustainability at Nakilat
Nakilat and its joint ventures (JVs) are committed to Qatar National Vision 2030, which outlines the development of a sustainable future for the State of Qatar. As an organization, we conduct various safety and internal development programs to ensure the creation of a safe and reliable workforce, while our robust corporate social responsibility (CSR) framework aims to enrich the lives of local communities and preserve our natural environment.
Our sustainability commitment comprises several key elements, and among our highlights this year include:
Safety Excellence
COVID-19 PREVENTIVE MEASURES
- Ensured smooth operations while allowing phased introduction of staff working from office and finally reached 100 % during the last Quarter of 2021 in accordance with COVID-19 governmental guidelines.
- Regular employee communications continued throughout 2021 as well on the latest COVID-19 guidelines and precautionary measures.
- Temperature screening for all employees, contractors and visitors across all our facilities (HQ, shipyard, Employee accommodation, onboard the vessels) continued for most part of the year.
- Face-to-face meetings restriction, encouraging employees to conduct virtual online meetings.
- Provision of necessary PPEs and adequate supplies of hand sanitizers are made available at all our working sites.
- Employee health declaration for all employees and contractors, including pre-embarkation for all seafarers.
- Contact tracing of positive cases and isolation of suspected cases; immediate liaising with Communicable Disease Center (CDC) for conducting COVID-19 tests for all suspected cases.
- Reinforce social distancing at all times; be it queuing during mealtimes, boarding transportation, or whilst on the transportation.
Human Capital & Capability Development
Professional and personal development of our most strategically important assets, our employees, remained in sharp focus during 2021. Nakilat continued to utilize our blended learning approach with the delivery of 97% of the training programs virtually. This is in response to the challenges posed by COVID-19, which restricted the utilization of in-person training sessions to critical safety courses only. This new strategy has significantly improved the efficiency of the training delivery model which gives more flexibility to our staff to complete training at times and locations convenient to them.
7,437 hours of training content was delivered by subject matter experts from external training consultancies as well as internal employees across all divisions.
We successfully extended our internal knowledge sharing program (NICE) with 35 sessions being conducted. A new Learning Academy was successfully launched in 2021 in partnership with LinkedIn Learning, providing over 10,000 courses and materials to staff supporting their competence development. New areas for Masterclasses and TED Talks have also been added, including enhanced learner reporting and metrics.
Nakilat continued to support the development of Nationals with its ICON21 Coaching program, comprising 63 hours of one-to-one performance coaching delivered to 8 young Qatari Nationals, as well as the creation of comprehensive Competence Development Plans for Nationals having completed the Career Development Center. In addition, a new dedicated training program on Personal Effectiveness in partnership with FranklinCovey Inc. was launched. The course provides 10 dedicated programs to Nationals to enhance their behavioural and professional competences, all of which are aligned to support their career goals and our Qatarization strategy. Over 255 courses have been delivered virtually during the year, fully utilizing the platforms and technologies at our disposal to ensure continued development of our employees.
In 2021, we continued our focus on developing the next level of leaders in our business through our succession planning process, which culminated in an agreed succession plan for 2021 for Nakilat. Facilitated by the creation of bespoke development plans for each successor, their advancement and growth will be the key focus for 2021, principally with the launch of our extensive and comprehensive Leadership Development Program.
