Bahri Annual Report-2012

• In August 2012, NCC signed time charter agreements for three chemical tankers with International Shipping and Transportation Co. Ltd. (a subsidiary of SABIC) for a period of five years, with an option for extension for another five year period. The DWT of the first two vessels is 45,000 while the third has a DWT of 75,000. The value of these time charter agreements for the first five years is approximately SAR 480 million. The first two vessels have been delivered to the International Shipping and Transportation Co. Ltd. while the third will be delivered upon its receipt from DSME in 2013. • During 2012, Bahri Dry Bulk Co. LLC (BDB) signed contracts with one of the world’s leading shipyards to build five Kamsarmax ships to transport dry bulk cargo. These modern ships, with a DWT of 82,000 and length of 229 meters, consume less fuel. In addition, these vessels are equipped with the latest technologies, and are designed pursuant to international regulations on environmental protection. These vessels will be received by the end of 2013 and the beginning of 2014, respectively. During this interim period, BDB has charted three vessels to transport bulk cargo in order to meet the needs of ARASCO, until the new ships are received. • In 2012, Bahri signed a Murabaha contract with the Public Investment Fund (PIF) to finance part of the cost of building two general cargo vessels, which are being built at Hyundai MIPO shipyard in South Korea. The value of the financing contract is equivalent to SAR 450 million to be repaid over 10 years from the date of receiving the vessels. It should be noted that these two vessels are part of a contract to build six general cargo vessels that

was signed in 2011. The vessels will be received in 2013 and 2014. • In March 2012, Bahri signed a contract with Qatalum for a year, with an option to renew it for another year. Pursuant to the contract, the Company shall transport large quantities of aluminum shipments from Qatar to the USA on every voyage of the Company vessels. • In 2012, a strategic cooperation agreement was signed between Bahri and Saudi Airlines Cargo Co. to transport urgent goods and equipment. This agreement shall last for three years. This collaboration will play an important role in helping to strengthen both companies in the area of air and sea freight. • During 2012, the Company attracted a significant number of qualified talented Saudi nationals to fill vacant positions at senior management levels. In conclusion, on behalf of myself and my colleagues the Board Members, I would like to express my deepest gratitude to the government of KSA, the Custodian of the Two Holy Mosques, and its institutions for their continued support. I would also like to thank the Company’s shareholders and customers for their trust and support, the Company’s executive management and all its employees for their efforts. We look forward to more success in the coming years. May the peace, mercy and blessings of Allah be upon you Abdullah Sulaiman Al-Rubaian Chairman


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