9. Investments in affiliates and other Summary of the movement in investments in affiliates for the year ended December 31 is as follows:
2010
2009
Balance, beginning of the year
418,519 358,933
Company’s share in affiliate’s profit
36,932
84,942
Investment in a Joint Venture (Note 9-C)
---
153
Company’s share in net income of a joint venture
3,856 ---
Dividends received during the year
(3,511)
(25,509)
Balance, end of the year
455,796 418,519
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 36.93 million up to October 31, 2010 (October 31, 2009: SR 84.94 million ), which was included in the consolidated income statement. 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, 2010 representing the Company’s share in establishing and developing costs. The company is engaged to manufacture float glass and commenced operations in April 2009.
The National Shipping Company of Saudi Arabia Annual Report 2010
64
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