The National Shipping Company of Saudi Arabia
64/65
a) Petredec Ltd. Petredec Ltd. was incorporated on February 20, 1980 under the laws of Bermuda. It is specialized in Liquefied Petroleum Gas (LPG) trading and shipping. The registered office of the company is located in Bermuda and the company also has offices in Monaco, Singapore and Bahamas. The Company signed an agreement on February 22, 2005 to acquire 30.3% share of the capital of Petredec Ltd. for total amount of SR 187.5 million (equivalent to USD 50 million). The difference between the net investment value and the value of the net assets acquired of SR 119.18 million was considered as goodwill and is included as part of the carrying value of the investment. Petredec financial year starts on September 1 and ends on August 31 of each Gregorian year. The Company’s share in Petredec net profit amounted to SR 135.38 million up to October
c) NCC-Odfjell Chemical Tankers JLT (hereinafter referred as “Joint Venture”) NCC signed a 50 percent joint venture agreement with Odfjell on 22/6/1430H (corresponding to June 15, 2009) to establish a company in Dubai, United Arab Emirates, by the name of NCC- Odfjell Chemical Tankers JLT to commercially operate the two companies’ combined fleet of coated chemical tankers in a pool for trading in the chemicals, vegetable oils and clean petroleum products markets on a world-wide basis with emphasis on the growing production and export of the Arabian Gulf Region. The Joint Venture commenced operations in 2010. NCC share in the net income of the Joint Venture amounted to SR 4.34 million (2010: SR 3.86 million) which was included in the consolidated income statement.
31, 2011 (October 31, 2010: SR 36.93 million), which included SR 46.69 million representing unrealized gain on open commodity swap contracts (October 31, 2010: unrealized loss of SR 2.09 million). b) The Arabian United Float Glass Company The Company signed a contract for establishing the Arabian United Float Glass Company as a founding member. It was established by a ministerial decision No. (1299) dated 11/05/1427H (corresponding to 08/06/2006). An investment of SR 20 million was made for the ownership of fully paid 2 million shares representing 10% of the share capital. Also, an amount of SR 1.2 million was paid through December 31, 2011 representing the Company’s share in establishing and developing costs. The company is engaged to manufacture float glass and commenced operations in April 2009.
10. DEFERRED DRY-DOCKING COSTS, NET
Deferred dry-docking costs, net at December 31 comprise the following:
2011
2010
Total dry-docking costs
260,149
205,065
Accumulated amortization expense
(192,946)
(164,682)
67,203
40,383
Movement in the dry-docking costs is as follows:
2011
2010
Balance, beginning of the year
40,383
51,388
Additional dry-docking costs
61,745
22,540
Transfer to fixed assets
(6,661)
-
Amortization expense
(28,264)
(33,545)
Balance, end of the year
67,203
40,383
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