Management Discussion and Analysis Report
About the Company and its services/ products Asyad Shipping, a key part of Asyad Group, plays an essential role in supporting the group ' s goals by providing efficient maritime logistics services. Founded in 2003, the company operates one of the largest and most diverse shipping fleets in the region, with 86 vessels across five main categories: crude tankers, product tankers, dry bulk carriers, gas carriers, and container vessels. This includes both owned and chartered ships like Liquified Natural Gas (LNG) vessels, Very Large Crude Carriers (VLCC), and product tankers. With operations in over 60 countries, Asyad Shipping helps drive global trade, linking markets in Asia, the Middle East, and North Africa. The company offers a range of services, including flexible shipping solutions, ship management, and chartering through its subsidiaries, such as Oman Ship Management Company, Oman Charter Company, Asyad Line and ASYAD Shipping Pte Ltd Singapore. Asyad Shipping’s wide- reaching network and diverse fleet enable it to provide customized solutions that adapt to changing market needs, ensuring flexibility and reliability. Taking advantage of Oman’s strategic location, Asyad Shipping plays a key role in the region’s economic development, enhancing trade and supply chain capabilities. By working within Asyad Group’s larger logistics network, the company bridges manufacturers and consumers, boosting global trade and reinforcing Oman’s position as a leading logistics hub in the region. Overview of financial performance In 2024, Asyad Shipping Company delivered a strong performance, marked by a 30.4% increase in net profit, which rose from USD 102.6 million in 2023 to USD 133.8 million by successfully navigating external challenges and maintaining its position across its diverse business segments. Revenue grew modestly by 1% to USD 951.7 million. The portfolio was strategically steered towards an increase in Time-Charter contracts compared to Spot Voyage contracts. The largest contributors to revenue remained the VLCC and Tankers segments, which together accounted for more than half of total revenue. Accordingly, gross profit saw a notable increase of 28%, reaching USD 274.8 million, reflecting the company’s effective cost management and operational execution. Operating profit increased by 33%, which amounted to USD 225.5 million, driven by improved operational efficiencies and improved market conditions. On the balance sheet, total assets decreased by 7.2%, from USD 3,031.6 million in 2023 to USD 2,812.9 million in 2024, mainly due to asset optimization strategies. However, non-current liabilities were reduced by 14.6% thus strengthening the company’s financial position.
In conclusion, Asyad Shipping Company’s financial performance in 2024 reflects a resilient and proactive approach to managing its assets, controlling costs, and enhancing profitability, reinforcing its position in a competitive and challenging cyclical shipping industry. Overview of the Company’s business and operations Performance In 2024, Asyad Shipping demonstrated strong financial performance across its diverse segments, showcasing resilience amid external challenges like market volatility and geopolitical tensions. Strategic fleet management, contract renewals, and market diversification contributed to significant achievements. Below is a breakdown of key developments and performance across each segment for 2024. Product Segment In the Product segment, Asyad Shipping significantly outperformed its budgeted financials by 58.45%. This remarkable performance can be attributed to a combination of factors, including an improved cargo mix and successful market penetration in regions such as China, Southeast Asia, and other key international markets. The Oceania market, particularly Australia and New Zealand, has been a significant contributor to the positive results. The existence of the Singapore office, with its time zone advantage, has also played a pivotal role in driving success. Additionally, strategic contract renewals and fleet management contributed to positive financial results, with the segment delivering stronger-than-expected outcomes in both revenue and profitability. Notably, Asyad Shipping secured 4 key contracts, including the extension of the Rustaq Silver contract with Shell, which is set to continue until January 2026. The company also signed a 2-year contract with Petronas for a newly built time-charted vessel and renewed a 2-year contract with OQ Trading for two coastal vessels. Furthermore, Asyad Shipping secured a time charter agreement for one MR tanker for a period of 60 months, starting from September 2024 to September 2029. These developments have reinforced Asyad Shipping’s position in the Product segment and ensured a steady flow of revenue in 2024.
18 | Asyad Shipping Annual Report 2024
Asyad Shipping Annual Report 2024 | 19
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