The National Shipping Company of Saudi Arabia
Annual Report 2008
43
Notes To The Consolidated Financial Statements For the year ended December 31, 2008 (InThousands Saudi Riyals)
1. Organization And Operations
The National Shipping Company of Saudi Arabia, a Saudi joint stock company (“the Company”), was established by Royal Decree No. M/5 dated 12/02/1398H, corresponding to 21/01/1978, and registered under Commercial Registration No. 1010026026 dated 01/12/1399H, corresponding to 22/10/1979, issued in Riyadh. The Company is primarily engaged in purchasing, chartering and operating vessels for the transportation of cargo and passengers and other activities related to sea shipping industry.The Company has operations through three distinct segments which are very large crude carriers (VLCCs), chemical transportation, and goods transportation (liners). The authorized capital of the Company is SR. 3,150 million from 315 million shares for the nominal value of SR 10 each as of December 31, 2008 and 2007. The Company owns thirteen Very Large Crude Carriers (VLCCs), three of which are chartered to Vela International Marine Limited, a subsidiary of Saudi Aramco, two are chartered to Euronav Company, one is chartered to Hanjin Company
(A Korean Company) and seven are operated in spot market which include two new VLCCs, namely “Jana” and “Habari” received on September 3, 2008 and October 14, 2008 respectively. The Company owns four Roll-On Roll-Off (RoRo) vessels operating on liner trade between North America, Europe, the Middle East and Indian Subcontinent. The National Chemical Carriers Company Ltd “Subsidiary” owns sixteen chemical tankers, out of which six are operated under a pooling agreement with Odfjell Sachems Company (The pool Manager) and three directly chartered to Odfjell Sachems Company, six are chartered to Saudi Company for Basic Industries “SABIC”, and one tanker is chartered out to SEPCHEM Company. The accompanying consolidated financial statements include the activities of the Company and its subsidiaries, in which the Company owns more than 50% of owners’ equity and/or has control over those subsidiaries. The Company established and/or invested in the following subsidiaries and affiliates:
Date of incorporation
Ownership % 2008
Ownership % 2007
Name
Activity
Location
1991 1996 1990 1980 2006
100% 100% 80% 30.3% 10%
100% 100% 80% 30.3% 10%
Company’s ships agent
USA
National Shipping Company of Saudi Arabia (America) Inc.
Consolidated Subsidiaries
Ship management
Dubai
Mideast Ship Management Ltd.
Petrochemicals transportation
Riyadh
National Chemical Carriers Ltd. (NCC)
Bermuda
Liquefiedpetroleumgastransportation
Non- consolidated Affiliates
Petredec Ltd.
Riyadh
Glass Manufacturing &Trading
Arabian United Float Glass Co.
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