Consolidated Financial Statements
11. SHIPS UNDER CONSTRUCTION AND OTHERS
The Company signed during October 2006 two contracts with Hyundai Samho Heavy Industries Company Ltd. to construct six VLCCs with a total cost of SR 2.7 billion (USD 719.8 million). The Company received all VLCCs of which two VLCCs were received in 2008 and remaining four VLCCs, “Kahla”, “Dorra”, “Ghazal” & “Sahba” were received in 2009 on March 12, 2009, May 06, 2009, July 3, 2009 and September 25, 2009, respectively, and deployed in the spot market on April 24, 2009, June 4, 2009, August 2, 2009 and October 6, 2009, respectively, and were transferred from the ships under construction to fixed assets during 2009. TheNational Chemical CarriersLtdCo., “Subsidiary”, signed contract with SLS Shipbuilding Co. Ltd, South Korea to build 10 petrochemical carriers and
another contract during the year 2007 to build six additional petrochemical carriers with a total cost of SR 3.01 billion (USD 802 million) of which SR 1.32 billion has been incurred as of December 31, 2009. These tankers are scheduled to be delivered during 2010 through 2012. Also, the National Chemical Carriers Ltd Co. received two new chemical tankers in the first half of 2008 which were deployed for chemical transportation. These tankers were part of above contracts. The following table presents cost incurred towards ships under construction and others as of December 31:
2009 9,020
2008
The Company
1,008,269
Mideast Ship Management Ltd.
28,863
27,534
The National Chemical Carriers Ltd Co.
1,393,815 1,431,698
1,069,334 2,105,137
In Thousands Saudi Riyals
The movement in ships under construction and others is as follows:
2009
2008
Balance, beginning of the year
2,105,137 1,185,974
1,262,087 2,078,126
Additions
Transfers to fixed assets Balance, end of the year
(1,235,076) (1,859,413)
1,431,698
2,105,137
In Thousands Saudi Riyals
for constructing chemical tankers amounted to SR 1.68 billion as of December 31, 2009 (2008: SR 1.98 billion). Capital commitments related to a new office in Dubai for Mideast Ship Management Ltd. amounted to SR 4.48 million as of December 31, 2009 (2008: SR 4.48 million). The capitalized portion of financial charges related to financing granted for the construction of carriers and new office in Dubai during the year 2009 amounted to SR 23.13 million (2008: SR 57.8 million).
The balance of ships under construction and others includes SR 1.66 million as of December 31, 2009 (2008: SR 1.66 million) which represents amounts incurred for the construction of the Company’s new building. The Company received all VLCCs under construction and there are no capital commitments to shipyards related to VLCCs as of December 31, 2009 (2008: SR 0.81 billion). The National Chemical Carriers Ltd Co. capital commitments
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Annual Report 2009 The National Shipping Company of Saudi Arabia
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