Consolidated Financial Statements
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 for the year ended December 31, 2010 amounted to SR 3.86 million which was recorded in the consolidated income statement.
10. Deferred Dry-Docking costs, NET Deferred dry-docking costs, net at December 31 comprise the following:
2010
2009
Total dry-docking costs
205,065 182,525
Accumulated amortization expense
(164,682) (131,137) 40,383 51,388
Movement in the dry-docking costs is as follows:
2010
2009
Balance, beginning of the year
51,388 114,961
Additional dry-docking costs
22,540
1,121
Amortization expense
(33,545)
(64,694)
Balance, end of the year
40,383 51,388
The National Shipping Company of Saudi Arabia Annual Report 2010
65
Powered by FlippingBook