REPORT OF THE BOARD OF DIRECTORS
Asset and liability distributions over the company’s segments as of 31st December 2010 (In Thousands Saudi Riyals)
Petrochemicals Transportation
General Cargo Transportation
Bulk Transportation Combined
Crude Oil & LPG Transportation
Total
Assets
5,519,163
2,961,285
207,488
200,000 1,078,343 9,966,279
Percentage
55%
30%
2%
2%
11%
100%
Liabilities
2,460,319
1,917,823
61,724 ---
148,030 4,587,896
Percentage
54%
42%
1% ---
3%
100%
Assets
Liabilities
1% 3%
11%
2%
2%
54%
55%
42%
30%
Crude oil & LPG transportation Petrochemical transportation General cargo transportation (Liner) Bulk transportation Combined
Crude oil & LPG transportation Petrochemical transportation General cargo transportation (Liner) Bulk transportation Combined
Crude Oil & LPG Transportation Sector: The Oil & Gas sector is responsible for operating a fleet of 17 VLCCs (Very Large Crude Carriers) in the Spot & Time charter markets. The risk management strategy is to balance employment between the fixed and the variable income which should not be less than 35% of the fleet to be on time charter contracts. At Year end 2010, 6 VLCCs were on time charter and 11 VLCCs were in the spot market. Charter rates are determined according to the internationally acceptable prevailing rates at the time of signing the contracts. Crude oil and Liquefied Petroleum Gas (LPG) transportation sector represents a major source of NSCSA’s income and posted an annualized operating income of SAR 375.11 million in 2010, compared to SAR 268.77 million in 2009, representing 84% of the total operating income in 2010. The fleet transported approximately 196 million barrels of crude oil during 2010. Note that the company’s 17 operating crude oil fleet has the capability to transport 36 million barrels. The total number of ports docked during the year 2010 was 309.
The National Shipping Company of Saudi Arabia Annual Report 2010
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