Bahri Annual Report-2008

The National Shipping Company of Saudi Arabia

Annual Report 2008

55

Notes To The Consolidated Financial Statements For the year ended December 31, 2008 (InThousands Saudi Riyals)

16. Hedging Reserve for Loan Commissions

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. The net cash flow difference between the hedged rate and the prevailing market rate as of December 31, 2008 amounted to SR 5 million.

17. Segment Information

A) The following schedule illustrates the distribution of the Company’s activities according to the operational segments for the year ended December 31:

2008

)666.829( )502.843( )464.210( )1.633.882( Operating expenses Operating expenses )479.871( )392.562( )379.525( )1.251.958(

1.352.448 618.937 623.145 2.594.530 Operating revenue Operating revenue 740.527 474.370 488.397 1.703.294

Gross oper- ating profit

685.619 116.094 158.935 960.648

Crude OilTransportation PetrochemicalTransportation General CargoTransportation (Liner)

2007

Gross oper- ating profit

260.656 81.808 108.872 451.336

Crude OilTransportation PetrochemicalTransportation General CargoTransportation (Liner)

B) The following schedule illustrates the distribution of the Company’s assets and liabilities according to the operational segments for the year ended December 31:

2008

Assets

Liabilities

5.032.373 3.072.196 292.065 1.422.792 9.819.426

1.995.025 2.256.403 99.804 214.323 4.565.555

Crude OilTransportation PetrochemicalTransportation General CargoTransportation (Liner) Shared Assets and Liabilities * Total

2007

Assets

Liabilities

4.204.666 2.060.345 301.816 1.229.959 7.796.786

1.359.585 1.291.641 139.283 192.795 2.983.304

Crude OilTransportation PetrochemicalTransportation General CargoTransportation (Liner) Shared Assets and Liabilities * Total

*Shared assets and liabilities represent amounts which can not be determined for a specific segment such as cash, deposits, governmental bonds, unclaimed dividends and payments, etc.

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