Bahri Annual Report- 2018

30

31

Annual Report 2018

Eleven: Subsidiaries and Sister Companies

Thirteen: Description of debt instrument activities

Transferable debt instruments

Owner- ship

Headquarters

Activity

Capital

Type

Company

Bahri has not issued or granted any transferable debt instruments, contractual securities, memoranda on subscription rights or any similar rights in 2018. Bahri has not issued or granted any transfer or subscription rights by virtue of any transferable debt instruments, contractual securities, memoranda on subscription rights or any similar rights in 2018. Transfer or subscription rights under debt instruments

National Shipping Company of Saudi Arabia (Bahri), USA

Based in Baltimore, Maryland, USA, with its base of operations in the USA Based in Dubai, UAE, and operates around the world Based in Riyadh Saudi Arabia, and operates around the world Based in Riyadh Saudi Arabia, and operates around the world Based in Dubai, UAE, and operates around the world Based in Singapore, and operates around the world Based and operates in Ras Al-Khair Saudi Arabia

Bahri Ship Agent

3,750,000 Limited Liability Company

100%

Ships Technical Management

Mideast Ship Management Ltd. National Chemical Carriers Company

307,000 Limited Liability Company

100%

Petrochemicals Transportation 610,000,000 Limited Liability Company Dry bulk Transportation 200,000,000 Limited Liability Company

80%

Redeemable debt instruments

Bahri Dry Bulk LLC (BDB) Based in Riyadh Saudi Arabia, and operates around the world

60%

There has been no purchase or cancellation of any redeemable debt instruments by Bahri.

Joint Limited Liability Company

Logistical Services 30,000,000

60%

BahriBolloré Logistics

Fourteen: Operational results

Dry bulk Transportation 18,750,000 Limited Liability Company

The Company’s revenues have witnessed increases over 2018 compared to 2017 due to the addition of new vessels to the Company’s fleet and the improved performance of our business units. Despite the decline in shipping rates and increase in fuel costs over the current period compared to 2017, the new fleet additions and performance improvements helped offset the effects of these negative factors on operating profits and profitability of the current period.

The net profit decline for the current period compared to the previous year, however, is mainly due to the impact of non-operating items. They include the losses of SAR 119 million incurred in associates during the current year compared to the profits of SAR 82 million the previous year, in addition to an increase of financing expenses of SAR 81 million this year. Generally, there has been no substantial difference between the

operational results of 2018 and 2017. However, fleet expansion and performance improvements minimized the effects of declining maritime transportation rates on the Company’s performance. Moreover, our financial results exceeded expectations when compared to the performance of global transportation and shipping companies and decline of shipping rates due to the difficulties and challenges faced by global shipping companies.

36%

BahriBunge Dry Bulk*

Liquefied Natural Gas (LNG) Transportation

22,917,000 Limited Liability Company

30.3%

Petredec Company Ltd.

Joint Limited Liability Company

Maritime Industries

International Maritime Industries Company (IMI)

1,107,000,000

19.9%

* The Group owns an indirect controlling interest in BahriBunge Dry Bulk through Bahri Dry Bulk LLC (BDB). Twelve: Loans and Sukuk received by the Company and subsidiaries according to audited financial statements Thousands (SAR) Company Note Original loan amount Opening balance Balance added during the year Ending balance Loan term (years)

Fifteen: Bahri assets, liabilities and business results for the last five fiscal years Bahri has an exceptional financial position that reflects its strong performance and indicates the high solvency the Company was able to achieve and maintain. The table below is a summarized version of Bahri’s business, assets and liabilities for the previous five fiscal years

Payments during the year

Lender

Bahri Financial Information and Business Results (2014-2018) 000s SAR

Sukuk 3,900,000 3,900,000

0

0

3,900,000

7

Public offering

2018

2017

2016

2015

2014

Item

Short-term

Local and international banks Local and international banks, Public Investment Fund (PIF) Local and international banks, Public Investment Fund (PIF)

0

580,000 490,000 90,000

-

6,129,910

6,045,835

6,788,484 1,717,871 20,837,255 10,750,158

7,502,120 1,817,583 19,096,651 9,397,573

3,626,412

Revenues

loans 1,012,500*

Bahri

Long-term loans

481,238

800,313

533,840

Net period profit Total assets Total liabilities

6,918,535 4,189,908 806,825 800,342 4,196,391

10

21,197,644 11,378,343

21,182,583 11,264,552

17,144,411 8,959,142

Total

11,831,035 8,089,908 1,386,825 1,290,342 8,186,391

Long-term loans

3,001,900 1,917,724

0

245,547 1,672,176

10

Total liabilities

Total assets

Net profit of the year

Revenue

Bahri Chemicals

21,197,644

6,129,910

2018 2017 2016 2015 2014

Total

3,001,900 1,917,724

0

245,547 1,672,176

10

11,378,343

481,238

21,182,583

6,045,835

Short-term loans Long-term loans

75,000*

0

6,000

0

6,000

1

Local bank

11,264,552

800,313

20,837,255

6,788,484

Bahri Dry Bulk

528,000 324,450 108,000

29,400 403,050

10

10,750,158

1,717,871

Local bank

19,096,651

7,502,120

9,397,573

1,817,583

Total

603,000 324,450 114,000

29,400 409,050

17,144,411

3,626,412

8,959,142

533,840

Information in 000s SAR

*Total credit limits available for short-term loans.

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