Annual Report 2017
108
109
6
Bahri Finance Division
Bahri’s healthy cash flow position is the result of consistently strong financial performance and the high level of solvency the Company has managed to achieve and maintain. It is also reflective of positive cash flows achieved from operational activities and expected to be maintained in future. The Company’s future growth is dependent on its expansion strategies and purchasing its fixed assets through its own capital sources and long-term loans. Fixed assets depreciate over a long period of time, typically 25 years. Bahri was able to diversify its funding sources, including short-term borrowings and long-term loans, by working with government entities and local and international commercial banks. These loans were in either Saudi Riyals or US Dollars and meant we were able to acquire the required funding at competitive prices and reduce the risks associated with interest rate increases and other funding costs. Capital Structure & Financing The company’s financial statements, which includes its assets and liabilities, revenue and overall business results are presented. In addition, a summary of Bahri’s subsidiaries’ financial results for 2017, are also be presented along with the official government payments as well as Bahri’s dividends distribution policy. Bahri Financials
Zakat & Withholding Tax
A provision for Zakat and taxes will be made for Bahri and its affiliates in the Kingdom of Saudi Arabia in line with the regulations of the General Authority of Zakat and Tax (GAZT). This provision will be reported in the consolidated income statement. Additionally, a provision for the withholding tax on sea freight payments should be made for non-resident parties and reported in the consolidated income statement. Provisions for income tax payable by foreign affiliates will be calculated based on the relevant laws prevalent in the country/countries of establishment of those affiliates and will be expressed in the consolidated income statement. The company and its partly-owned affiliates will provide their Zakat declarations separately. The company has filed its Zakat declarations as well as those of its affiliates for every year until 2016. The company believes it has made sufficient provisions for Zakat and withholding tax as of December 31, 2017.
Statement of regulatory payments as of December 31, 2017 – (SAR “000”)
National Chemical Carriers Ltd. Co. (Bahri Chemicals)
Item
Bahri
Bahri Dry Bulk (BDB)
Zakat
66,506
21,569
3.689
Withholding tax
5,767
554
968
Murabaha Financing and Long-Term Loans in 2017
Dividend Distribution Policy
Murabaha financing & long-term loans during 2017 – (SAR “000”)
Additions Throughout the Year
Earnings per share from operating income and net profit for the period is calculated based on the weighted average number of shares outstanding during the period. Proposed dividends after the period end are treated as part of retained earnings and not as liabilities unless the General Assembly approves it before the period end. Once approved by the General Assembly, the amount is recognized as a liability in the same period until paid. Earnings per share is calculated based on the number of shares outstanding during the year ending December 31, 2017 and December 31, 2016 amounting to 393.75 million shares. The Board of Directors decided in its meeting held on December 13, 2017 to recommend to the General Assembly of the Company the distribution of cash dividends of SAR590.63 million to the shareholders for the financial year ending December 31, 2017, which amounts to SAR 1.5 per share, and represents 15% of the share value. Proposed dividends will be distributed at a date set by the Board of Directors, pending approval at a meeting of the Ordinary General Assembly. In its meeting held on 16 January 2017, the General Assembly approved the distribution of cash dividends of SAR984.38 million to shareholders at SAR2.5 per share for the year ending on December 31, 2016. Dividends were distributed on January 31, 2017. The General Assembly has approved in its meeting held on April 6, 2016 the distribution of cash dividends of SAR 984.38 to the shareholders, amounting to SAR 2.5 per share for the year ended December 31, 2015.The dividends were distributed on April 21, 2016.
Paid During the Year
Start of Year Loan Balance
Loan Average Duration (Years)
End of Year Loan Balance
9,746,588
10
1,586,640
1,001,146
10,332,082
Powered by FlippingBook