Consolidated Financial Statements
52
Notes To The Consolidated Financial Statements For the year ended December 31, 2008 (InThousands Saudi Riyals)
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 total cost of SR 2.7 billion (USD 719.8 million). And of six VLCCs the Company received two new VLCCs, “Jana” and “Habari” on September 3, 2008 and October 14, 2008 respectively and were deployed in the spot market and remaining four VLCCs will be delivered during 2009. Also,The National Chemical Carriers Company Ltd, “Subsidiary” signed contract with SLS Ship Building Co. 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). All carriers are expected to be delivered during 2009 through 2012.
Also, The National Chemical Carriers Company Ltd. received two new chemical tanker in the first half of 2008 were deployed for chemical transportation, these tankers were part of above contract. The balance of ships under construction represents all payments made in connection with ship construction contracts of new VLCCs, amounts incurred for the construction of the Company’s new building and payments made by NCC (a subsidiary) under signed contracts for constructing new chemical tankers, in addition to the company’s new building under construction. The following table presents payments made for ships under construction and others as of December 31:
2008
2007
1.008.269 1.069.334 2.077.603
922.079 340.008 1.262.087
The Company The NCC (subsidiary)
The balance of ships under construction and others includes SR 1.66 million as of December 31, 2008 which represents amounts incurred for the construction of the Company’s new building (2007: SR 1.64 Million). The capital commitments towards shipyards for the construction of VLCCs amount to SR 0.81 billion as of December 31, 2008 (2007: SR 1.80
billion), and for the construction of petrochemical carriers SR 1.98 billion (2007: SR 2.99 billion), and for purchase a new office in Dubai for Mideast Ship Management Ltd.. SR 23.35 million (2007: SR 25.34 million). The capitalized portion of financial charges related to loans granted for the construction of carriers and new office apartments during the year 2008 amounted to SR 58 million (2007: SR 27 million).
Accounts payable and other credit balances at December 31 comprise the following: 12. Accounts Payable and other Credit Balances 2008 2007
37.153 173.031 23.270 25.295 45.030 303.779
22.079 220.967 16.013 11.533 49.018 319.610
Trade payables Accrued operating expenses Accrued insurance expenses Accrued finance charges Other credit balances
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