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)

B - Arabian United Float Glass Company The Company signed a contract for establishing Arabian United Float Glass Company as a founding member. It was established by Ministerial Decision No. (1299) dated Jumada Awwal 11, 1427H (corresponding to June 8, 2006). An investment of SR 20 million was made for the ownership of 2 million fully paid shares, representing 10% of the share capital. In addition, the Company had paid an amount of SR 1.2 million as of December 31, 2012 representing its share in establishment and development costs. This company is engaged in manufacturing of float glass and commenced its operations in April 2009. The Company subscribed SR 10 million in a rights issue representing 1 million additional shares. Accordingly, the total investment became SR 30 million and remained at 10% of the share capital. C - NCC-Odfjell Chemical Tankers JLT (hereinafter referred as “Joint Venture”) NCC signed a 50 percent joint venture agreement with Odfjell on Jumada Thani 22, 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 fleets of coated chemical tankers in a pool for transportation of petrochemicals, vegetable oils and refined petroleum products on a world-wide basis with its focus on the growing production and export markets of the Arabian Gulf Region. The Joint Venture commenced operations in 2010. NCC’s share in the net income of the Joint Venture amounted to SR 3.79 million (2011: SR 4.34 million) which is included in the consolidated statement of income.

10. Deferred Dry-Docking Costs, Net

Deferred dry-docking costs, net at December 31 comprise the following:



Total dry-docking costs



Accumulated amortization expense






Movement in the dry-docking costs is as follows:



Balance, beginning of the year



Additional dry-docking costs



Transfer to fixed assets



Amortization expense



Balance, end of the year




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