00:00I want to start off just by asking you about the evolution of Adnok global trading because you launched in December 2020. How has it evolved since then and where does it fit into the broader Adnok picture. First of all thank you for having me and welcome to the trading floor within Adnok global trading.
00:17Before 2020 I decided to add a new dimension to its activities by tapping into the trading space. This will add more value to Adnok. We used to sell all of our products 100 percent in FOB basis. So all the value after the port goes back to the traders. Today we're doing only 5 percent of FOB and the rest we deliver it all the way to our end buyers across all continents.
00:46In only five years we established offices in Singapore in Geneva and soon to come in the U.S. This will put us on the global map and this will increase our footprint across the whole globe. What is the edge you think you have. We own the full value chain from the well all the way to the distribution and trading comes in and takes advantage of the whole operation excellence that we have within Adnok.
01:16Yeah. What are the products that you're primarily trading. Understand it's refined products. So just walk us through the universe of products you're trading. Perhaps if you're looking to add to that in coming years as well.
01:26You know we started with five products at the beginning. Today we have more than 16. So we started with the legacy products out of the refinery jet fuel nafta gas oil gasoline and crude and then we started to add more products and products that also concentrate on the new dimension of energy need.
01:44So we have LNG. So we have LNG. LNG for example we trade today three times what we produce in Adnok. So we're preparing ourselves for the future by fuel carbon sulfur.
01:55All these products have been added to the trading floor. And you see scope for those products just to pick up in terms of trade and volumes in coming years.
02:06Exactly. Yeah. Because once we surpass the uncertainty we have in the near term we look at the future and we see the demand picking up. And this is why we're preparing ourselves.
02:17And what are the types of customers that you're dealing with. It's mainly in buyers. OK. Retailers refiners. So we deal with them across the globe. Yeah.
02:28Let me ask you about just more broadly you know when you think about your geographical expansion plans why it makes sense to have obviously you mentioned that you have your base here.
02:39You're looking to expand into Europe the U.S. as well. How does that aid your business in terms of a 24 hour cycle.
02:47The best thing about trading is you need to have a view over the whole globe because it comes the value comes out of optimization. And if one region is out of your scope you're not 100 percent optimizing.
03:01So that's why we have presence in Singapore in Geneva and soon to come to the U.S. and we optimize the barrels between all the contents. Yeah. And in terms of
03:12the I just wonder whether also at not global trading is perceived to be almost an internal consultant of sorts because you have your traders here and they have visibility
03:25views on where some of these key indicators markets are going to be going in the future. Do you. Is there often a conversation that takes place between
03:32a global trading and other adnock units about timing or sizing trades. That's a very good point. Today we have an entity that has a view in the
03:42market. Yeah. And it will help the rest of adnock companies to look at their project at their expansions and how we look at the market rather than just getting data from consultants.
03:54We have people who deal with this day in and day out. So they will give you a most accurate information for your projects. Yeah. Do you. What would you say has been your biggest challenge in terms of building this up.
04:04Because it seems like you've come a very long way in the last five years. You've added a lot of products. Obviously transaction volumes have gone up too. What has been your biggest challenge in terms of getting it up and running.
04:18You know we started this company during COVID. Yeah. So that was one of the biggest challenges. So we went live in December 2020 after going all through the lockdowns and the headache of getting people in the country.
04:32In the country. But I think the biggest challenge is when we started we had zero U.E. Nationals in this business. So what we decided to do is to create a trading academy that helps those U.E. Nationals to bring up their skills and be part of this organization.
04:50And I'm probably saying today that one third of the population are U.E. Nationals. Actually one third of the traders in the global traders are U.E. Nationals doing the same business as the expertise experts that we have.
05:07Yeah. It's an impressive figure from started from where you were. In terms of transaction volumes what are we looking at right now. And do you have a do you have a goal for where you want to get to.
05:18We need to expand our international offices will help us in this organic growth. Today we transact more volume and more. We do more transactions per day than we used to do before 2020 in a whole year.
05:32So it tells you the amount of work we have done and the amount of value we're dealing with. And we're not relying only in ad knock barrels. So we're doing third party barrels and we're increasing that portfolio.
05:45Yeah. Final questions I've got to ask you is AI changing the game for your traders as well. I mean back in my day and training this is a very long time ago that there was you know basic machine learning.
05:55But I'm curious to see how that has evolved over the years and whether actually contributes to more efficiency in trading as well. I think you heard Dr. Sultan two days ago and he said we are implementing AI from the well all the way to trading.
06:09And he mentioned trading. More than 200 uses of AI across of all of ad knock and we are part of this organization. We are focusing on data crunching quick decisions and risk management.
06:23And this will help us be quick to the market and handle all the volatility that comes out of this uncertain markets and situations.
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