Oman Shipping Makes Profit
By Aiswarya Lakshmi
Monday, May 30, 2016
Oman Shipping Company (OSC) reported a $180 million profit in 2015. Tariq bin Mohammed Al Junaidi, chief executive officer of OSC has been quoted by Oman News Agency saying that achieving significant profit came as a result of the good performance of the operations of the company’s business in general.
"The profit is a result of an improvement in the rental market of giant oil tankers (as a result of the decline in world oil prices ) resulting from the increase in oil supply in global markets," Al Junaidi said.
This profit will be used to develop and expand the company’s business during the coming period.
Al Junaidi also noted that OSC has begun to make profit since the first year of its establishment and did not suffer from any losses, only in two years, as a result of circumstances beyond the company’s abilities.
He noted that the company invests 20-30 per cent to buy any tanker and the remaining sum would be financed by borrowing from local and international banks.
He explained that OSC now owns 47 tankers and five tankers will join its fleet by the end of this year. The company has succeeded in strengthening its position in the maritime transport markets over the past few years.
It very recently signed an agreement with Shell International to provide it with 10 ships to transport oil derivatives in 2015 and 2016. OSC provides them with five ships so far and the other ships will be provided at the end of the year, he said.