Consolidated Financial Statements
7. ACCRUED BUNKER SUBSIDY, NET
Accrued bunker subsidy, net at December 31 comprise the following:
2009
2008
Accrued bunker subsidy
61,719
69,853
Provision for doubtful bunker subsidy
(30,467)
(19,882)
31,252
49,971
In Thousands Saudi Riyals
Net provision made during the year amounted to SR 10.6 million (2008: SR 8.4 million).
8. INVESTMENTS IN AFFILIATES AND OTHER
Summary of the movement in investments in affiliates for the year ended December 31 is as follows:
2009
2008
Investments balance at the beginning of the year Company’s share in affiliates’ profit (loss) Investment in the Arabian United Float Glass Company
239,756 84,942
233,596 (3,840) 10,000
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Investment in a Joint Venture (Note 1) Dividends received during the year
153
--- ---
(25,509) 299,342
239,756
In Thousands Saudi Riyals
A - Petredec Ltd. Petredec Ltd. was incorporated on February 20, 1980 under the laws of Bermuda. It is specialized in Liquefied Petroleum Gas (LPG) trading and shipping. The registered office of the company is located in Bermuda and the company also has offices in Monaco, Singapore and Bahamas. The Company signed an agreement on February 22, 2005 to acquire 30.3% share of the capital of Petredec Ltd. for total amount of SR 187.5 million (equivalent to US$ 50 million). The difference between the net investment value and the value of the net assets acquired was considered as goodwill (Note No. 2-i-2). Petredec financial year starts on September 01 and ends on August 31 of each Gregorian year. The
Company’s share in Petredec net profit amounted to SR 84.94 million up to October 31, 2009 (October 31, 2008: SR 3.84 million net loss), which was included in the consolidated income statement. B - The Arabian United Float Glass Company The Company signed a contract for establishing the Arabian United Float Glass Company as a founder member. It was established by a ministerial decision No. (1299) dated 11/05/1427H (corresponding to 08/06/2006). An investment of SR 20 million was made for the ownership of fully paid 2,000,000 shares representing 10%of the share capital. Also, an amount of SR 1.2 million was paid until December 31, 2009 representing the Company’s share in establishing and developing costs.
Annual Report 2009 The National Shipping Company of Saudi Arabia
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