Bahri Annual Report-2012

The National Shipping Company of Saudi Arabia (A Saudi Joint Stock Company) Notes to the Consolidated Financial Statements As of December 31, 2012 (in Thousands of Saudi Riyals)

Date of Incorpo- ration

Effective Ownership % 2012

Effective Ownership % 2011

Accounting Method

Name

Activity

Location

Affiliates:

Liquefied petroleum gas transportation Pertochemicals transportation Glass manufacturing & trading

Petredec Ltd.

Equity

Bermuda 1980

30.30% 30.30%

NCC-Odfjell Chemical Tankers ** Equity:

Dubai

2009

40%

40%

Arabian United Float Glass Co.

Cost

Riyadh 2006

10%

10%

* For organizational and restructuring purposes, the Company established a new wholly-owned subsidiary, Mideast Ship Management Ltd. (JLT), in the Free Zone of Dubai in the United Arab Emirates on October 31, 2010 with a share capital of Emirati Dirhams 300,000. The purpose of this restructuring was to transfer the operations of Mideast Ship Management Ltd. (Bermuda) to the new company. The two subsidiaries signed a business transfer agreement to transfer the operations between them as of June 7, 2011. The legal procedures for transferring the assets and liabilities from Mideast Ship Management Ltd. (Bermuda) to Mideast Ship Management Ltd. (JLT) were finalized during the second quarter of 2011 and the license of Mideast Ship Management Ltd. (Bermuda) was canceled on December 12, 2011. The above transaction and arrangement did not have any effect on the consolidated financial statements of the Company. ** A company owned 50% by National Chemical Carriers Limited and accordingly the indirect ownership for the Company is 40%.

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