Chairman’s Message
Dear Shareholders On behalf of my Board Members for the session colleagues (2008-2010), and I, I am delighted to submit the annual report and the results of the fiscal year 2010, together with programs and projects executed and the consolidated financial statements for the year ended 31/12/2010. Also submitted, NSCSA’s financial position, where the net profit achieved in the year 2010 was approxi- mately SAR (415) million despite of global financial difficulties. The company under the guidance of previous term Board of Directors com- pleted many important programs and projects that are in the interest of the company and helped to develop and grow. The most important accomplish- ments during the past three years are but not limited to the following: • NSCSA adopted and implemented a strategic plan including the review of its strategy, current activities, and opportunities in the shipping markets due to the global changes in the transportation sector in general as well as the shipping industry in particular. • Adoption of the Corporate Governance Regulation that aims to assist the Board of Directors and Executive Management and improve the efficient operation of the Board and its committees in order to ensure compliance with the best governance practices that ensure the rights of shareholders and stakeholders’ rights. • Established a joint venture company for transporting Dry Bulk cargo between The National Shipping Company of Saudi Arabia (NSCSA) and the Arabian Agricultural Services Company (ARASCO) having (60%) & (40%) own- ership respectively. • Established a joint venture company between the National Chemical Car- riers (NCC) and the Norwegian company (Odfjell) in Dubai to commercially operate the fleet of both companies with tanker size of (40,000) dwt. The fleet operates in a pool employed in chemical trades, vegetable oil and refined petroleum products around the world focusing on the Arabian Gulf as the most important area in the production and export of petrochemicals. • Cancellation of (7) new building chemical tankers’ contracts signed between the National Chemicals Carriers company and (SLS) Shipbuilding Ltd. in the year 2006. It was mutually agreed due to the delay by the shipbuilding com- pany in delivering the tankers within the agreed time. Accordingly, the National Chemicals Carriers recovered the amount of SAR 701.6 million, including all the installments paid by the company to (SLS) for the contracts cancelled until 31 December 2010. This amounted to SAR 641.3 million and all other expenses incurred which amounted to SAR 45.2 million; resulting a net compensation of SAR 15.1 million.
The National Shipping Company of Saudi Arabia Annual Report 2010
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