Bahri Annual Report-2008

The National Shipping Company of Saudi Arabia

Annual Report 2008


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




1991 1996 1990 1980 2006

100% 100% 80% 30.3% 10%

100% 100% 80% 30.3% 10%

Company’s ships agent


National Shipping Company of Saudi Arabia (America) Inc.

Consolidated Subsidiaries

Ship management


Mideast Ship Management Ltd.

Petrochemicals transportation


National Chemical Carriers Ltd. (NCC)



Non- consolidated Affiliates

Petredec Ltd.


Glass Manufacturing &Trading

Arabian United Float Glass Co.

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