Bahri Annual Report- 2018

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Annual Report 2018

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

29. CAPITAL COMMITMENTS AND CONTINGENCIES

31. NON-CONTROLLING INTERESTS IN SUBSIDIARIES

Set out below is summarized financial information for each subsidiary that has non-controlling interests, shown in note 1:

Capital commitments

2018 National Chemical Carrier Company Limited

The Group’s capital commitment related to the ships under construction and the purchase of property and equipment SAR 135 million as of 31 December 2018 (31 December 2017: SAR 927 million) The Group signed an agreement on 30 May 2017 with Saudi Arabian Oil Company (ARAMCO), Hyundai Heavy Industries Ltd. (South Korea) and Lamprell Power Company Limited (UAE) to enter into a partnership for the establishment, development, and operation of maritime yard in Ras Al Khair City named International Maritime Industries Company (IMI). The partners injections will total to SAR 2.625 billion (USD 700 million) of the project cost. As of 31 December 2018, the injected capital from partners totaled to SAR 1.107 billion (USD 295.2 million). The ownership in IMI is as follows; ARAMCO (50.1%), The National Shipping Company of Saudi Arabia (19.9%), Lamprell Power Company Limited (20%), and Hyundai Heavy Industries (10%). The Group has signed an offtake agreement for at least 75% of its commercial vessel needs over a period of 10 years from the start date of the project, equivalent to 52 vessels, including oil tankers “VLCC” - subject to commercial terms and conditions. The Group has outstanding bank letters of guarantee for SAR 269 million as at 31 December 2018 (31 December 2017: SAR 314 million) issued for the Group’s normal course of business. Also, Bahri issued Corporate Guarantees to subsidiaries for SAR 429 million as of 31 December 2018 (31 December 2017: 433 million) & to assocciates for SAR 746.25 million as of 31 December 2018 (31 December 2017: SAR Nil) The Group is involved in legal litigation claims in the ordinary course of business, other than what has been disclosed in, which are being defended, there are also some claims under the process of final settlement. The Group’s management does not expect that these claims will have a material adverse effect on the Group’s consolidated financial statements. Operating lease commitments – Group as a lessor The Group was committed to lease certain of its vessels to a related party based on time charter agreement. The future amounts receivable under this lease agreement are as follow: Contingencies

Bahri Dry Bulk LLC & Bahri Bunge Dry Bulk

Bahri Bolloré Logistics

Total

Non-controlling interest Percentage

20%

40%

Non-current assets

2,893,727

663,410 123,185 (368,438) (78,182) 339,975 134,378 387,390 18,311 (1,612)

3,557,137

Current assets

447,294

100,057 (5,913) (64,582) 29,562

670,536

Non-current liabilities

(1,424,453) (440,434) 1,476,134

(1,798,804) (583,198) 1,845,671

Current liabilities

Net assets

Non-controlling interests relating to the subsidiary Net assets attributable to non-controlling interests

(1,612)

295,227 872,174 43,831

11,825 116,789

441,430

Revenue

1,376,353

Net income

1,034

63,176 (9,385)

Non-controlling interests relating to the subsidiary Net income attributable to non-controlling interests

(9,385) (2,061)

8,766

414

7,119

2017 National Chemical Carrier Company Limited

Bahri Dry Bulk LLC & Bahri Bunge Dry Bulk

Total

2018

2017

Non-controlling interest Percentage

20%

40%

Within one year

392,509

536,336

Non-current assets

3,096,785

591,586 87,586 (301,762) (55,909) 321,501

3,688,371

Current assets

456,312

543,898

After one year but not more than five years

1,268,573

1,372,579

Non-current liabilities

(1,669,399) (451,948) 1,431,750

(1,971,161) (507,857) 1,753,251

More than five years

113,851

703,042

Current liabilities

1,774,933

2,611,957

Net assets

Non-controlling interests relating to the subsidiary Net assets attributable to non-controlling interests

7,862

Income from time charter agreements under operating lease amounted SAR 436 million for the year ended 31 December 2018 (31 December 2017: SAR 584 million).

286,350 805,270 14,429

136,463 362,297

422,813

Revenue

1,167,567

Net income

8,033

22,462

30. DIVIDENDS

Non-controlling interests relating to the subsidiary Net income attributable to non-controlling interests

2,886

3,312

6,198

The Board of Directors decided in its meeting held on 10 December 2018 to recommend to the General Assembly of the Company the distribution of cash dividends of SAR 591 million to the shareholders for the financial year ended 31 December 2018 amounted to SAR 1.5 per share. The General Assembly of the shareholders of the Company approved in its meeting held on 17 April 2018 the distribution of cash dividends of SAR 591 million to the shareholders for the financial year ended 31 December 2017, amounted to SAR 1.5 per share. These dividends have been paid on 3rd of May 2018. The General Assembly of the shareholders of the Company approved in its meeting held on 16 January 2017 the distribution of cash dividends of SAR 984 million to the shareholders for the financial year ended 31 December 2016, which amounted to SAR 2.5 per share. These dividends were paid on 31 January 2017.

32. SUBSEQUENT EVENTS

In the opinion of management, there have been no significant subsequent events since the year ended 31 December 2018 that would have material impact on the consolidated statement of financial position of the Group as part of these consolidated financial statements.

33. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The Board of Directors has approved the consolidated financial statements for the year ended 31 December 2018 on their meeting held on 26 Jumad Thani 1440H (corresponding to 3 March 2019)