Bahri Annual Report- 2018

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125

Annual Report 2018

Notes to the consolidated financial statements – continued For the year ended 31 December 2018

8. INTANGIBLE ASSETS

9. INVESTMENT IN ASSOCIATES (continued)

Intangible assets represent the long term substantial evaluation of transportation contracts, which resulted from purchasing the operations and assets of Vela Company (a subsidiary of ARAMCO) in 2014. The value of those intangible assets are amortized over the estimated total average remaining useful life of the purchased vessels.

The table reconciles the summarized financial information to the carrying amount of the Group’s interest in Petredec as at 31 October:

31 2018 أكتوبر 4,514,325 6,529,333 (3,843,644) (3,806,830) 3,393,184

31 2017 أكتوبر 4,588,856 6,276,377 (3,480,982) (3,733,051) 3,651,200

Current assets

2018

2017

Non-current assets Current liabilities Non-current liabilities

Cost Opening balance

892,125

Disposals

Net assets before non-controlling interest

Ending balance

892,125

Non-controlling interest

(36,228)

(44,866)

Accumulated amortization Opening balance

Net assets

3,356,956 1,017,259

3,606,334 1,092,828

(172,532) (52,184)

(120,061) (52,471)

Charge for the year

Group’s share in net assets (30.30%)

Disposals

Goodwill

79,083

Ending balance Net book value

(224,716) 667,409

(172,532) 719,593

Carrying amount of investment in an associate

1,096,342 29,255,265

1,171,911 16,359,977

Revenue

Net income before non-controlling interest

(249,040)

272,507

Non-controlling interest

(337)

(1,402)

9. INVESTMENT IN ASSOCIATES

Total net income for the year

(249,377) (75,569)

271,105 82,153

The balance of investment in associates as at 31 December contains investments in the following companies:

Group’s share of total comprehensive income (30.30 %)

Note

2018

2017

The associate has SAR 800 million contingent liabilities and capital commitments as at 31 October 2018 (31 October 2017: SAR 1300 million). During 2017, the Group commenced with the process to sell part of its 30.3% in Petredec Limited. As part of the deal, Haydock Holdings Limited, the other partner in Petredec Ltd., will also sell part of its 69.7% stake in Petredec Limited, bringing the total ownership of the new investor to 13% of Petredec Ltd share capital. In October 2018, the group decided to stop the process of selling part of its stake in Petredec Limited due to dispute between all the related parties on the final agreement terms.

Petredec Limited

9-1 9-2

1,096,342

1,171,911

International Maritime Industries Company

168,999

74,625

1,265,341

1,246,536

9.1. Petredec Limited

9.2. International Maritime Industries Company

The movement of investment in Petredec Limited as at 31 December is as follows:

In 2017, International Maritime Industries Company has been established in KSA with capital of SAR 1,107 million between the Company, (ARAMCO), Hyundai Heavy Industries (South Korean Company) and Lamprell Power Company Limited (a UAE-based Company). The Group share in the established company represents 19.9% and amounting to SAR 169 million. The new company has not started its operations as at 31 December 2018.

2018

2017

Beginning Balance

1,171,911

1,123,848

Share in results of an associated company Investment in an associate share of OCI

(67,236) (8,333)

82,153

The movement of investment in IMI as at 31 December is as follows:

Dividends received during the year

(34,090)

2018

2017

Ending balance

1,096,342

1,171,911

Beginning Balance

74,625 145,667 (51,293) 168,999

The fiscal year of Petredec Limited begins as at 1 September and ends as at 31 August of each Gregorian year. The Company’s share in Petredec Limited results for the financial year is recorded as per latest financial statements prepared. The difference between the latest financial statements prepared by the associate company and the Group’s consolidated financial statements is two months.

Additional paid in capital

74,625

Share in results of an associated company

Ending balance

74,625