130
131
Annual Report 2018
Notes to the consolidated financial statements – continued For the year ended 31 December 2018
Notes to the consolidated financial statements – continued For the year ended 31 December 2018
18. SUKUK, LONG TERM AND SHORT-TERM LOANS (continued)
18. SUKUK, LONG TERM AND SHORT-TERM LOANS (continued)
18.2 Murabaha loans
18.6 Long term, short term loans related to subsidiary (continued)
The Group obtained long term loan during year ended 31 December 2018 for a total of SAR 915 million (31 December 2017: SAR 1,587 million). Loans are secured by promissory notes and mortgages against vessels (note 6). These loans are repayable over 10 years on quarterly or semi-annual basis. The loans carry commission at normal commercial rates. Balance of loans against which profit to be paid is based on LIBOR as at 31 December 2018 equivalent to SAR 3,104 million (31 December 2017: SAR 3,235 million) and balance of loans against which profit to be paid based on SIBOR at the end of 31 December 2018 totaled to SAR 3,040 million (31 December 2017: SAR 3,033 million). Balance in prepaid financing account related to Murabaha loans at the end of 31 December 2018 is SAR 70.95 million (31 December 2017: SAR 76.2 million).
18.6.2 Bahri Dry Bulk LLC
Long term loan balance for Bahri Dry Bulk LLC consists of the following:
2018
2017
Murabaha loans
403,050 403,050 (29,400) 373,650
324,450 324,450 (29,400) 295,050
Total long-term loans
Less: Total current portion Non-current long-term loans
18.3 Commercial loans
The Group did not obtain any long-term loan during year ended 31 December 2018 (31 December 2017: Nil). The existing loans are secured by mortgages against vessels (note 6). This loan is repayable over 10 years on semi-annual basis carrying special commission at LIBOR plus normal commercial margin. Balance of the loan against which profit to be paid based on LIBOR as at 31 December 2018 are SAR 127 million (31 December 2017: SAR 163 million).
Less: prepaid financing
(4,907)
(1,829)
Net non-current long-term loans
368,743
293,221
Short-Term Loans
6,000
-
Current Portion of Long-Term Loans Loans - Current Liabilities Loans - Non-Current Liabilities
29,400 35,400 368,743 404,143
29,400 29,400 293,221 322,621
18.4. Short Term Loans
The Group obtained short term loans during the year ended 31 December 2018 amounting to SAR 586 million (31 December 2017: Nil). The total repayment against short term loans during the year ended 31 December 2018 is SAR 490 million (31 December 2017: Nil). The existing loans were utilized to meet working capital requirements during the year.
18.5. Commitments
19. EMPLOYEES’ BENEFITS
Loans agreements include commitments mainly related to maintaining certain ratios of leverage, debt to equity ratio and other commitments. Under the terms of these agreements, banks are entitled to demand immediate repayment of loans if none of these undertakings are met.
2018
2017
Opening balance
69,467
65,482
18.6.1 National Chemical Carriers Limited Co. 18.6 Long term, short term loans related to subsidiary
Current service cost
9,591 2,511
7,860 2,608
Interest cost Benefits paid
Long term loan balance for National Chemical Carriers Limited Co. consists of the following:
(12,026)
(5,131) (1,352) 69,467
384
Re-measurement gain (loss) on defined benefit plans
2018
2017
Ending balance
69,927
Murabaha loans Commercial loans Total long-term loans
1,545,082
1,754,317
The significant assumptions used in determining end of service benefit plans for the Group’s plans are shown below:
127,094
163,406
1,672,176 (245,547) 1,426,629
1,917,723 (245,547) 1,672,176
2018
2017
Less: Total current portion Non-current long-term loans
Discount rate
4.15% 30.00% 9.00% 6.37%
4,00% 30,00% 3,00% 3,00%
Withdrawal rate – for the first two years of service Withdrawal rate – third year of service and above Future salaries increase - for the first three years Future salaries increase - fourth year and after
Less: prepaid financing
(5,044)
(5,734)
Net non-current long-term loans
1,421,585
1,666,442
6.37%
5,50%
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