Date(s) - 22 December 2008
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Year End Message
The year 2008 is nearing to an end; and for EQUATE it was a tough but successful year. EQUATE was able to deliver solid results despite the year being one of the most challenging years in recent memory.
The major challenges were to sustain our safety records during the course of the year with a multitude of increase in workforce within our plant site while we start up our new units and meet our growth obligation; and to move the products and meet the sales plan, while making profit and collecting our proceeds under unforseen market conditions. We did it! EQUATE people always made it happened and our history of success approved that!!
We have achieved most of our objectives set for the year. It was despite the implications of global financial downturn and market toughness. Our performance reflected the capabilities of people throughout this excellent organization. On behalf of the Board of Directors of EQUATE and the Management Team, I would like to acknowledge the tremendous effort by every EQUATER towards achieving our goals in 2008.
Our safety record is in its peak by surpassing the record of 14 Million safe work hours in November and driving for 15 Million in the coming days!! With an optimum RI rate, this is going to be one of the rare records in the industry, not on the regional level but even globally!! Excellent result achieved by our commitment to safety behaviours!!
The delays in receiving additional gas from new ERU as we planned for the year and several other constraints including power failures, unit problems and ethane feed restrictions affected our production capabilities. Yet our production exceeded over 1.1 Million tons of polyethylene and glycol, which is more than previous years.
We have maintained our strict operating and strategic discipline and stretched ourselves to meet the start up deadlines of new expansion units. We have safely launched the commercial operations of the new Ethylene Glycol and Ethylene Units at Olefins II.
These achievements were amazing and every one of us is proud of it. It would not have been possible if the support from all EQUATE functions were not extended. Many supportive functions, without mentioning names were contributing into this success and every employee contributed into achieving new milestones under the guidelines of our superior Leaders. Thank you all.
On the other hand, EQUATE was not too far from the recent global financial crisis which hit the business and markets. The last quarter of the year witnessed the most difficult global recession, which has led to a steep fall in sales and product prices, and had its severe impact on our profit forecasted for 2008. Nevertheless, we were able to capture all opportunities in market in its peak season beginning of this year, and expect to close our books and earn not less than 96% of our budget.
The 2009 is approaching and carrying ahead more challenges for the whole globe — not only for EQUATE. This is a time we should exploit all efforts to sustain our competitive advantages and enhance our success story under tough market conditions. This is indeed a real time for all professionals to improve their capabilities and show their strength. I am confidant that people like us, EQUATERs, can successfully pass these tests!!
Needless to mention that our priorities remain unchanged. Be more vigilant on safety. And, collectively all of us are obligated to monitor and watch our expenditures in all possible ways to eliminate unnecessary costs without compromising on business, people development and quality of work, services and products which remain as EQUATE uniqueness. Many of global companies, as you are aware, have announced tough plans to survive. EQUATE being a lean organization, has no plans to cut jobs or reduce manpower and payout due to market changes. However, we will focus on our competitive advantages and remain as an efficient and profitable company under difficult circumstances. Acting as an owner is a task of every member of EQUATE.
By closing this message, on behalf of the EQUATE Management Team, I would like to thank you all for your hard work and congratulate you for the accomplishments of many millstones in 2008. I also take this opportunity to thank our Board of Directors on your behalf for being very supportive to keep up EQUATE the best work place in the region.
My self and rest of EMT members wish all of you and all your families a happy and prosperous new year. Be safe and stay motivated!
Hamad Al Terkait
President and CEO