annual performance report 2017

SHEQANNUAL

PERFORMANCEREPORT

2017

Issued on 08-04-2018

CONTENTS

01Executive SummaryZakher Marine goal is to make every day, a perfect HSE day.......

02 Welcome MessageGeneral Manager

04 Performance AnalysisData collected from 2011 to 2016 include reports from all vessels .......

14 Events & ParticipationSignificant presence of ZMIIn the regional corporateEvents…...............

08 Objectives & KPIsHow we met our Objectives and KPIs in 2016.................

12 Customer SatisfactionZakher Marine performed an idealand excellent role ................

10 Training and Campaigns 2017ZMI’s annual HSE Awareness trainingagenda and achievements................

17 Awards & RecognitionsRecognition is the best way to motivate................

2017 ISSUE

03 Welcome MessageSHEQ Manager

15 Expanding BoundariesExpansion of ZMI business Territories and facilities……..

E X E C U T I V ET H E

S U M M A R Y

ZMI's goal is to make today and every day a Perfect HSE Day; onewithout recordable injury or illness, serious spill and serious road accidentacross the company. During 2017, we improved our HSE performance inmany areas however, overshadowed by just one Medical case. These eventsemphasize that we cannot lose our focus on mitigating risks.

We strive for flawless execution in our operations and believe that we canachieve 365 perfect HSE days in a year. Our performance matrix highlightsthat we are progressing but we still have more to do in the following:

Top Level Management commitment is evident towards SHEQ; howeverManagement still believes that Sky is limit.

Minimize the Accidents/Lagging indicators & maximize the Leadingindicators.

Reduce ZMI impact on the environment, through continuousimprovement of the environmental management and raising awareness.

Enhance and update shore-based employees and shipboard personnelunderstanding of SHEQMS, standards, other rules and applicableregulations by providing in-house and outsourced training which isorganized by Company.

Continuous Monitoring & Control to improve & achieve the highestpossible staff/vessel’s performance during Internal/ External Audit andinspection.

Achieve the highest possible client satisfaction, establishing the companyin a position as being a preferred employer within the industry.

Expanding and strengthening company’s market presence

Page 12017 ISSUE

As we expand our business to meet the high demands of the marineindustry, we remain true to our commitment towards our people and ourclients by providing them with reliable and professional marine servicesolutions that emphasize compliance on safety, health, quality andenvironmental sustainability.

ZMI Management is fully committed in achieving high compliance of Safety,Health, Environment and Quality (SHEQ) policy and implementing a regularSHEQ awareness program across all levels of our organization and to ensurethat new employees understand our daily operations and adhere strictly tothe policy. We will continue to find proactive approach and solutions toachieve zero harm to people, property and the environment as it isimperative in our daily operations to maintain high standard of servicesensuring safety and efficiency in all aspects of our business.

Mr. Ali El AliGeneral Manager

WELCOME MESSAGE

Zakher Marine International continuesto be one of the largest offshore vesselowners and operators in the region withfocus in the United Arab Emirates, Qatar andin Saudi Arabia. Our goal is to expand ourfleet and services and become the premierprovider of marine services to the offshoreindustry.

2017 ISSUE

Our Workplace Rights Policy requires that we take responsibility formaintaining a productive workplace in every part of our Company by doingwhat we can to minimize the risk of accidents, injury and exposure to healthhazards for all of our associates and contractors.

At ZMI, solving client challenges is second only to keeping everyone safeand healthy. We do not compromise our focus on HSE for better businessresults. Our commitment to safety minimizes the impact on theenvironment, control risks to our employees and maintain safe workpractices.

I would like to extend my gratitude to all, particularly to the offshore staffmembers for their personal contribution, dedication and commitment toHSE and making 2017 another year without LTI. Keep this up."

Capt. Nasir MehmoodSHEQ Manager

WELCOME MESSAGE

"Our long-term success depends entirely uponworking to ensure the safety of our workers,subcontractors and visitors to our premises. I believethat a safe and healthy workplace is a fundamentalright of every person and also a business imperative.

2017 ISSUE

ISSUE

PERFORMANCE ANALYSIS

The analysis presented here is based on data collected from the years 2012 until 2017. These data includereports from vessels operating under ZMI Management wherein Safety Performance is measured based onLagging and Leading Indicators as presented below.

Lagging (Reactive) Safety Performance Indicators

Leading (Proactive) Safety Performance Indicators

0

20

40

60

80

100

120

140

2013 2014 2015 2016 2017

RAL

SOFR / 10

MVR

LLR

Trainings FrequencyRating/10

LEADING INDICATORS

0.0

0.5

1.0

1.5

2.0

2013 2014 2015 2016 2017

FAR (FatalityRate)

LTI FR

TRIR

LAGGING INDICATORS

Lagging Safety Performance is measured using a range of lagging or reactive indicators (undesired events)such as numbers of Fatalities, Lost Time Injuries, Restricted Work Injuries, Medical Treatment Cases andDamage or Near Miss incidents.

In contrast to Lagging Safety Indicators, Leading Safety Indicators are measured using a series of leading orproactive indicators which aim to elevate the Safety Management Performance and strengthen HSE culturewithin Organization by diminishing undesired events such as injuries or damages.

ISSUE


LAGGING (REACTIVE) SAFETY PERFORMANCE INDICATORS

Overall 2017 was a positive year in terms of personal injuries as compare to the previous years. MedicalTreatment Report (MTR) significantly reduced in 2017. ZMI had only one (1) Medical Treatment case across itsunits. ZMI aims to achieve Zero injuries in 2018. To achieve the target ZMI will continue to do more efforts byintroducing new training and competency programs.

0.0

1.0

2.0

3.0

First Aid Case First Aid Near Miss Medical TreatmentReport (MTR)

Restricted Work InjuryReport (RWIR)

Lost Time Injury (LTI)

Personal Injury Trend Analysis (2013 - 2017)

20132014201520162017

0.0

1.0

2.0

3.0

Fall on the same level(slips, trips and Fall)

Contact/exposure withhazardous substances

Struck against (person hita stationery object)

Cuts

Causes of First Aid & Injury (2012 vs. 2017-Q4)

201220132014201520162017

50%50%

Causes of First Aid Cases & Injuries Reported in 2017

Fall on the same level (slips,trips and falls)

Struck against (person hit astationary object)

Reasons of personal injury in 2017 were primarily attributed to Fall on the same level (slips, trips and Fall) andStruck against (person hit a stationery object).

ISSUE

PERFORMANCE ANALYSISEnvironmental And Property Damage Incidents

0

1 1

0

0.2

0.4

0.6

0.8

1

1.2

EI - Major EI - Minor ENM

Environmental Incidents Trend Analysis

2013

2014

2015

2016

2017-Q4

0

2

4

6

8

10

12

14

PDI - Major PDI - Minor PDNM

Property Damage Trend Analysis

2013

2014

2015

2016

2017-Q4

Like every year, as the Company expanded the number of vessels and barges in 2017, ZMI is committed to its

objective to "Reduce ZMI Impact on the Environment" through continuous improvement of the environmental

management and raising awareness. Training and Development will enhance and update shore-based

employees and shipboard personnel understanding of SSHEQMS, standards, rules and applicable regulations

by providing in-house or outsourced training which will organize by ZMI.

On the whole, 2017 was a remarkable year with no environmental incidents and no major property damage

incidents reported. However, as seen below few minor and near-miss property damage incidents were

reported and appropriate measures were taken to contain it. Also, as a part of ZMI’s pro-active safety culture,

relevant safety flashes were circulated to all vessels and barges ,throughout the year to avoid future incidents.

ISSUE


Safety Observation Frequency Rate(SOFR)By the end of quarter 4 2017, the SafetyObservation Frequency Rate (SOFR) issignificantly increased compared to the previousyears’ statistics. SOFR of 91.63 is achievedagainst the set target of 50.

The Training frequency Rate - TFR increasedfrom 107.12 in 2016 to 124.53 in 2017.

Training Frequency Rate (TFR)

Lessons Learned Rate (LLR)

The TFR increased from 6.4 in 2016 to 9.1 in2017, which is well above the set target of 5.

Management Visit Rate (MVR)

By the end of the quarter, the MVR increasedfrom 11.06 in 2016 to 16.14 in 2017, which iswell above the target set for 2017.

LEADING (PROACTIVE) SAFETY PERFORMANCE INDICATORS

FatalitiesLoss Time

InjuryRestricted Work

Injury

Medical Treatment

First Aid

Near Misses

Safety Observations

0

0

1

1

0

8

18509

LAGGINGINDICATORS

LEADINGINDICATORS

YEAR2017

MAN HOURS4014600Based on a 12 Hour Work day

Safety Observation A total of 18, 509 safety observations submitted to SHEQ Department.

Incident Investigation

Six (6) incident investigations were carried out in the year 2017participated by relevant personnel (i.e HSE and Operation)

SHEQ OBJECTIVES & KPIs ACHIEVEMENT

No OBJECTIVES KPIs TARGET ACHIEVEMENTQ1 Q2 Q3 Q4

Top Level Management Leadership and Commitment towards Safety, Health, Environment & Quality Leadership –Management Commitment

1

To ensure active involvement of management on provision and sustenance for company policies, competent personnel, resources, medium of open communication, training and motivation program

Management Visit 4/Year 6 7 8 8

Management Review of the SSHEQMS 1/Year In Q2 1 1 1

Preparation & approval of incentive program 2017 1 1 1 1 1

Utilization of Safety Award incentive scheme for offshore/ ashore. 100% 13% 23% 76% 98%

Health & Safety (People & Property)

2

Minimize the Accidents/Lagging indicators & Maximize the Leading indicators

To encourage workforce pro-actively participate on hazard elimination and identification.

To improve workforce’s commitment towards promotion of safety culture in the organization.

Fatal Accident Rate (FAR) Zero 0 0 0 0

Lost Time Injury Frequency Rate (LTIFR) Zero 0 0 0 0

Total Recordable Injury Rate (TRIR) 1 1.02 1 0.67 0.5

Number of significant property damage incidents (Major) <2 0 0 0 0

Number of Minor property damage incidents <4 0 1 3 5

Reporting Activity Level (RAL) 8 8.17 8.01 6.32 4.7

Safety Observations per 200,000 Man Hours (SOFR)/10 50 88.48 89.89 97.71 91.63

Lessons Learned Rating (LLR) 5 6.5 7.1 6.9 9.1

Environment, Reduce ZMI’s activities impact on the Environment/Community

3

To improve workforce’s awareness through proper training, monitoring and compliance with ZMI SSHEQMS and other requirements.

Number of Environmental pollution accidents Zero 0 0 0 0

Environmental awareness campaign 1 1 1 1 1

Environmental Reporting Activity Level (Refer to Document monthly Environmental performance statistics.)

100% monitoring/review/f

eed back100% 100% 100% 100%

Greenhouse (CO2) Emissions per unit per Quarter (offshore) 100% Monitoring 100% 100% 100% 100%

Water consumption per person per Quarter – (Onshore) 100% Monitoring 100% 100% 100% 100%

Electricity consumption MW/QTR/person (Onshore) 100% Monitoring 100% 100% 100% 100%

Quantity of Paper printed / Qtr. / Person 100% Monitoring 100% 100% 100% 100%

Reduction of waste (CWM requirement) 20% of the total waste generated In Q4 In Q4 In Q4 Done

2017 ISSUE

No OBJECTIVES KPIs TARGET ACHIEVEMENTQ1 Q2 Q3 Q4

Training and Development

4

To enhance workforce’s comprehension on SHEQMS and acquire competency as per requirements/ job profile. To provide job related knowledge to the workers, bring about change in the attitudes of the workers, improve the productivity of the workers and the organization, reduce the number of accidents by providing HSE training to the workers and enhance positive HSE culture in the company.

Preparation and circulation of SHEQ Internal training plan & drills program (offshore and onshore)

01 Each 1 1 1 1

SHEQ Internal Trainings per 200,000 Man Hours (TFR) > 50.0 129.09 129.9 120 124.53

SHEQ Awareness campaigns offshore/ ashore 4 / Year 2 4 5 7

SHEQ In-house Workshops 01 / Quarter 1 1 2 2

Completion of Offshore SHEQ Training Plan 1 25.29% 56% 70.48% 81.59

TNA for all SHEQ staff. Within 4th Q Within Q4 Within Q4 Within Q4 Done

Number of appraisal/performance evaluation reports per position 1 per year Within Q4 Within Q4 Within Q4 Done

Monitoring and Control

5

To Improve & achieve the highest possible staff/ vessel’s performance during Internal/ External Audits, PSC, Flag and Vetting Inspections, etc.Improvement of vessel operations efficiency and efficiency of shore based technical, logistics and personnel support in terms of customer claims, and required discharge time.

Internal Audits & Inspections 100% as per plan 12.74% 46.95% 57.39% 92.0%

Preparation and submission of SHEQ Audits or Inspections Reports 7 Working Days 3 Days 2 Days 4.2 Days 3.7 Days

Follow-up and Closeout of Findings < 1.5 months 0.61 months 0.59 months 1.33 Months 0.57 months

No. of Offshore Attendance by SHEQ personnel 4/Year 4 7 8 14

Preparation of Incident Investigation reports

72 hours for UAE Based Vessels/sites 100% 100% 100% 100%

Closeout of Incident Investigation reports

< 01 month (UAE Based Vessels) 0.57 months 0.3 0.32 0.31

Revision and implementation of new SSHEQMS Whole SSHEQMS In Q2 In Q3 Done Done

Review and implementation of new Risk Register Whole Register In Q2 In Q3 In Q4 In Q1-2018

Preparation and circulation of SHEQ Improvement plans/ programs 2017 (Just culture , incentive , BBS, Training and competency)

01 each 2 3 3 3

Ensure Performance monitoring & evaluation of subcontractors, suppliers & crewing agencies by BD, Procurement and Crewing Managers.

100% as per plan Monitoring 100% 100% 100% 100%

Feedback

6

Establishing the company in a position as being a preferred employer within the industry.

Customer Satisfaction Rating >85% In Q4 In Q4 In Q4 87.00%

Number of SQM per client 4/Client/Year 7 9 9 11

Number of NCRs due to client complaints Zero 0 0 0 0

Closeout of external complaints/inspections <14 days 0 0 0 0

2017 ISSUE

ISSUE

TRAINING & CAMPAIGNS 2017

ZMI operates an effective safety management system, designed to ensure that we have a strong safetyculture such that every one of our employees will return home to their families in a healthy condition,with no accidents or incidents during their work time.

One of the prime ways in which the Company achieves this is through its HSE Communications andAwareness programs such as Campaigns targeted for its onshore as well as offshore staff.

Much effort goes into our safety systems, trainings and campaigns but all are totally dependent on onevery important factor – employee participation and interest.

"Training of the Month" Program wasintroduced in late 2015 to unify theTrainings for the whole year for allseafarers. This practice has followed in2017 as well to bring every crew memberat the same level of competence and toregulate it at Company standards.

Appropriate training strategies andactivities required to achieve the desiredlearning outcome are identified at thebeginning of every year and set in theOffshore Training Plan.

ISSUE

TRAINING & CAMPAIGNS 2017

QUARTER 4 – SAFE MOORING & HAND INJURY PREVENTION

Successful Launch Of 2017 SSHEQ Campaigns

Zakher Marine successfully launched its quarterly campaign “Safe Mooring & Hand Injury Prevention”across all its fleet during the last quarter of 2017. These campaigns were met with ardent participation fromall crew. “Safe Mooring” campaign was achieved in 46.2% of the fleet, while “Hand Injury Prevention” wasachieved in 65.4%.

QUARTER 1 – DROPPED OBJECTS AWARENESS CAMPAIGN

The first campaign of the year wasmet with much fervor andenthusiasm from the crew acrossall the Company fleet. The“Dropped Objects Awareness”campaign was achieved in 48.08%of the fleet.

0

20

40

60

80

100

DroppedObject

Campaign

BBS Heat Fatigue EnvironmentalAwareness

Hand InjuryPrevention

Safe Mooring Hand Trailing

Campaign Achievement 2017Amongst the 2017 campaigns,the Company recorded thehighest achievement from the“Hand Injury PreventionCampaign” across itsemployees/ fleet as comparedto the others. This record isclosely followed by the “HeatFatigue”, “Dropped Object”,and “Safe Mooring”campaigns.

“Well done! Keep up the good job, high standard of safety & Barge performance.” - ADNOC

“All operations were carried out safely and smoothly and with a high degree of professionalism which helped us allprogress the project and bring it to a successful conclusion. I look forward to working with you and your crew in thefuture and I am sure based on this performance you will have more work in Saudi Arabia for ARAMCO” – SAUDIARAMCO

“Keep up the good job” - NPCC

“Keep the same standard of your professionalism and I’m happy to work again on DP2 Seamaster. On behalf ofDP2Seamaster, thanks a lot to Capt. Buber and his crew” - McDermott

“Both captains and crew members are pro-active, supportive and they uphold the SHE-Q standard on a high level. Vesselperformance is very good. Very flexible, efficient and always on time. Communication of the crew is very good. Daily pre-startmeeting is always held on the bridge” - Boskalis

KPI Target Achievement

Customer Satisfaction Rating 85% 87%

CUSTOMER SATISFACTIONConsidering the compliance with company objectives and KPI for the year 2017, ZMI has achieved well abovethe target overall client satisfaction of the minimum desired 85% and been identified as Excellent with anoverall 87%. Other target KPIs achievement of at least four Safety Quality Meeting (SQM) per client per yearhave also been achieved.

What our Clients say about us!...

2017 ISSUE

CUSTOMER SATISFACTION CLIENT

FEEDBACK

CATEGORIES

2017 ISSUE

EVENTS & PARTICIPATION

2017 ISSUE

ADIPEC is one of the world’s most influential events for the oil and gas industry. As a premiumexhibition and conference platform, ADIPEC hosts hundreds of speakers, thousands of exhibitingcompanies and tens of thousands of trade professionals from around the world.

As in every year, this year too ADIPEC provided a great platform for us at ZMI to showcase ourprojects, fleet and services to the largest Oil & Gas audience in the Asia, Africa, Europe and MENAregion.

The top management met face to face with thousands of senior executives at our booth,benefitting from the events world wide reputation as a powerhouse for local, regional andinternational business opportunities in energy.

Exhibiting at the ADIPEC has certainly given Zakher Marine an opportunity to expand theCompany’s customer base, by engaging with top decision makers, influencers and purchasersduring the four days of the show.

ZMI Participation @ ADIPEC 2017

EXPANDING BOUNDARIES

WELCOME ON BOARD – QMS ACHIEVER!!Barge QMS Achiever reached Emirates of Abu Dhabi. Sheis Self Propelled / Elevating Unit with DP2 capabilitiesand POB of 250, the largest in the ZMI fleet family bytonnage and POB wise. ZMI achieved another milestone by

establishing a full fledged office in KSA.Aside from UAE, Qatar and Panama, ZakherMarine International Inc. successfullyestablished an additional business locationin Al Khobar Saudi Arabia recently. This isto expand the business territory of ZMI inMENA region along with construction ofnew barges.

Page 152017 ISSUE

ZMI managed the movement of office (Personnel andOffice Items) from Abu Dhabi to ICAD II Musaffah safely.The movement was completed successfully without anysafety and quality issues.

AWARDS & RECOGNITIONS

2017 ISSUE

ZMI congratulates ETO Mykola Ivanov from project vessel Sea Conquest upon receivingappreciation for his remarkable teamwork performance in IGD-E project on 24th of October, 2017with our client BOSKALIS.

This comes in recognition of ZMI’s deliverance of high standard, efficient and safe integratedBarge Support services in a professional manner to ZADCO (OS-MS) during Upper Zakum CentralComplex major Shutdown.

ZMI Team with ADNOC Team

These accomplishments and appreciation comes as an inspiration to all ZMI crew to continue giving their best towards the company.

BOSKALIS Appreciation of ZMI ETO in IGD-E Project

Proud Moments @ ADNOC

ETO Appreciation by ZMI

The ZMI team @ QMS Huracanwas appreciated with a SafetyAward by NPCC for theirindividual performance ancontribution to the projectwith UZ 750.

ETO Appreciation by BOSKALIS

ZMI team was awarded a certificate of appreciation

in October 2017 from ADNOC Offshore!

ZMI Success

Team with NPCC Award

Ramy ElyaskyChief OfficerZakher Crest

Sohaib IlyasBosunZakher Ocean

Ahmed Shaaban AbdallahOilerZakher Crest

Dhruwaji MishraWelderZMI Workshop

Capt. Norman LewisMarine Supt.

Capt. Yevgeniy FedotovQMS Supporter

Raymundo Ramirez OchocoElectricianZMI Workshop

Safe Employee of the Quarter Award is being given to any ZMI employees (onshore andoffshore) who actively participates to improve company HSE culture, encourages safe workingpractices amongst other staff or crew members. He/she can be someone who maintains orencourages a high standard of cleanliness, organization and house-keeping, an individual whosubmits the most number of high quality safety observations and an individual who puts out theextra effort to seek continuous improvement on the vessel, worksite or office.

Page 17

AWARDS & RECOGNITIONS

Mostafa JalloulChief OfficerSea Conquest

Bashar SammourSystem AdministratorICT Department

Mark CaviteñoDocument Controller Projects Department

Capt. Abdelfattah GhorabMasterZakher Duty

Oleg NaumenkoChief OfficerQMS Constructor

Adnan Al MohtasebHR Officer HR Department

Radeshyam YadavWelderZMI Workshop

QUARTER

1

QUARTER

2

QUARTER

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QUARTER

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2017 ISSUE

ZMI SAFE EMPLOYEES OF 2017

w w w . z m i g l o b a l . c o m

annual performance report 2017

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