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)
7. Inventories
Inventories on board the ships at December 31 comprised the following:
2012
2011
Fuel
108,103
122,835
Lubricants and others
23,965
22,214
Total
132,068 145,049
8. Bunker Subsidy, Net
Accrued bunker subsidy, net at December 31 comprised the following:
2012
2011
Accrued bunker subsidy
169,480
130,374
Provision for doubtful bunker subsidy
(38,534)
(42,595)
Total
130,946
87,779
9. Investments in Affiliates and Other
The movement in investments in affiliates and other for the year ended December 31 is as follows:
2012
2011
Balance, beginning of the year
561,432
455,796
Company’s share in profit of affiliates
147,660
139,723
Additional investment in Arabian United Float Glass Company
10,000
-
Dividends received during the year
(35,910)
(34,087)
Balance, end of the year
683,182 561,432
A - Petredec Ltd. Petredec Ltd. was incorporated on February 20, 1980 under the laws of Bermuda. It specializes 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 a 30.3% share of the capital of Petredec Ltd. for a 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. As the year-end for Petredec is different from the Company’s year-end, the share of the Company in its net profit/loss is included in the books according to the latest financial statements prepared by Petredec. The difference between the latest financial statement prepared by Petredec and the Company’s consolidated financial statements is two months. The fiscal year for Petredec starts on September 1 and ends on August 31 of each Gregorian year. The Company’s share in Petredec’s net profit amounted to SR 143.87 million up to October 31, 2012 (October 31, 2011: SR 135.38 million), which includes the share of the company in unrealized losses of SR 19.77 million and unrealized gain of SR 46.69 million on open commodity swap contracts as at October 31, 2012 and 2011 respectively.
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