The National Shipping Company of Saudi Arabia
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6. BAREBOAT LEASE RECEIVABLE, NET
The arrangement qualifies as a capital lease as it transfers to Odfjell substantially all the benefits and risks and also gives Odfjell a purchase option under the arrangement. The net bareboat lease receivable balance as of December 31 is summarized as follows:
On January 30, 2009, the National Chemical Carriers Ltd. Co. signed agreements with Odfjell to charter three vessels under bareboat arrangement for a period of ten years with purchase option after three years. These ships were delivered to Odfjell on February 1, 2009.
Description
2011
2010
Future minimum lease payments
467,005 522,439
Un-guaranteed residual value at the end of lease term
247,875 247,875
Total
714,880 770,314
Unearned income
(302,520) (351,340)
Net bareboat lease receivable balance
412,360 418,974
The above amount is classified at December 31 as under:
Description
2011
2010
Current
7,538
6,615
Non-current
404,822
412,359
Net bareboat lease receivable balance
412,360 418,974
The future minimum lease payments and unguaranteed residual value at the end of
lease term to be received during the next five years and thereafter is as follows:
2011
2010
Due within 12 months
55,586
55,435
Due within 1-2 years
57,313
55,586
Due within 2-3 years
61,245
57,313
Due within 3-4 years
65,351
61,245
Due within 4-5 years
69,649
65,351
Thereafter
405,736
475,384
714,880 770,314
and is included in the operating revenues in the accompanying consolidated income statement.
Income related to the above arrangement for the year ended December 31, 2011 amounted to SR 48.82 million (2010: SR 49.51 million)
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