Consolidated Financial Statements
15. STATUTORY RESERVE
In accordance with Saudi Arabian Regulations for Companies, the Company is required to transfer 10% of the net income to the statutory reserve until such reserve equals 50% of the paid-up capital. This reserve is not currently available for distribution to shareholders. The Board of Directors of the Company in its meeting held on January 18, 2010, approved to transfer the share premium reserve to the statutory reserve in accordance with Article (98) of the Saudi Arabian Regulations for Companies.
16. HEDGING RESERVE FOR LOANS COMMISSION
The Company uses the commission rates swaps and caps to avoid fluctuations in commission rates on the long-term loans. The change in the market value of the commission rate swaps are recorded in the hedging reserve which is included in the shareholders’ equity.
17. SEGMENT INFORMATION
A) The following schedule illustrates the distribution of the Company’s and subsidiaries’ activities according to the operational segments as of December 31:
2009
Operating expenses Operating revenue
Gross operating income
Crude Oil Transportation
1,040,228
(771,456) (152,892)
268,772 151,814
Petrochemical Transportation General Cargo Transportation (Liner)
304,706
327,082
(375,197)
(48,115)
1,672,016
(1,299,545)
372,471
In Thousands Saudi Riyals
2008
Operating expenses Operating revenue
Gross operating income
Crude Oil Transportation
1,352,448
(666,829) (502,843)
685,619 116,094
Petrochemical Transportation General Cargo Transportation (Liner)
618,937
623,145
(464,210)
158,935
2,594,530
(1,633,882)
960,648
In Thousands Saudi Riyals
60
Annual Report 2009 The National Shipping Company of Saudi Arabia
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