Chapter I Information about the Company and Its Subsidiaries
Major Achievements in 2012
• The Boards of Directors of Bahri, Saudi Aramco and Vela approved the merger of Vela’s fleet and operations with Bahri. The final agreement was signed on November 4, 2012. • Bahri signed a contract with Qatalum for one year period, with an option to renew it for another year, pursuant to which the Company shall transport significant quantities of aluminum from Qatar to the USA on every voyage made by the Company’s vessels. This contract also allows the Company to transport other aluminum shipments from Qatar to Turkey and Italy. • The National Shipping Company of Saudi Arabia revealed its new identity of “Bahri”. The project was awarded to an international consultant, specialized in branding identities and trademarks, which also determined the Company’s future strategy in this regard. • In July 2012, Bahri signed a Murabaha contract with the Public Investment Fund (PIF) to finance part of the cost of building two general cargo vessels. The financing contract is valued at SAR 450 million to be repaid over 10 years from the date of receiving the ships in equal quarterly installments. It should be noted that the vessels will be received in 2013. • The Company has sold its land located at Takasusi Street in Riyadh from which it made a net profit of SAR 10,684,412. • Bahri approved the decision of RWE Supply and Trading GmbH, which had chartered a VLCC from Bahri for three years ending on April 24, 2013, to terminate the charter agreement on April 12, 2012 and return the tanker. It was agreed that the charterer would pay Bahri a financial compensation of about USD 6,186,250 (equivalent to SAR 23,198,437) in return for its decision to terminate the contract before its expiry. This amount was paid full on April 2, 2012. • The State of Maryland, USA has granted the 16th Annual Maryland International Business Leadership Award for 2012 to NSCSA America Inc., a wholly owned subsidiary of Bahri. The Company was selected by the award review committee at the headquarters of the World Trade Institute as one of six leading companies from among 60 nominees in the State of Maryland. It should be noted there are 150,000 companies in this state. • In 2012, Bahri was named the Best Managed Company in the Middle East in the transport and shipping sectors by Euromoney. • National Chemical Carriers Ltd. Co (a subsidiary company owned 80% by Bahri and 20% by SABIC) has signed a renewable charter agreement for five years, renewable for another five years, with the International Shipping and Transportation Co. Ltd. (affiliated with SABIC) for three chemical tankers.
• NCC received four chemical tankers each with a DWT of 45,000 in May, August, September, and December 2012 from ShinaSB Shipyard, which are operated by NCC-Odfjell JV Co. based in Dubai. • NCC canceled a contract with ShinaSB Shipyard to build one chemical tanker (NCC Bader) due to a delay in the delivery of the tanker based on the rights granted to it pursuant to the contract. The contract also reserved NCC’s right for a refund of all paid installments amounting to USD 41.6 million (equivalent to SAR 156 million), guaranteed by the Export-Import Bank of Korea (KEXIM) in addition to compensation of approximately USD 7 million (equivalent to SAR 26.25 million). • Bahri Dry Bulk Co. LLC (BDB) (a subsidiary company 60% owned by Bahri and 40% by ARASCO) signed contracts to build five Kamsarmax ships with one of the world’s leading shipyards to transport dry bulk cargo. The first ship will be received by the end of 2013, and the rest shall be received during 2014. • BDB started operating to meet the demands of its customers to transport grains and other bulk cargo to KSA. This operation was carried out by chartering three ships from the global market with contracts ranging from 17 to 21 months. The company intends to charter a total of five ships and continue its operations until it receives its new ships, which are still under construction.
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