Bahri Annual Report-2017

Annual Report 2017

174

175

Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)

11 Consolidated Financial Statements

5. OPERATING SEGMENTS

Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)

For management purposes, the Group is organized into business units based on its operations as it is illustrated in note 4.26:

4. SIGNIFICANT ACCOUNTING POLICIES (continued)

Dry bulk transporta- tion

Adjustments and elimina- tions’

Oil transpor- tation

Head office and Others

2017

Chemical

Logistic

Total

4.26. Operating segments

For management purposes, the Group is organized into business units based on their operations and has the following reportable segments: • Oil transportation • Chemical transportation • Logistics

Revenue

3,726,244 805,270

1,136,967 (803,992)

362,297 107,018

(91,961)

6,045,835

Operating cost

(3,114,438)

(677,289)

(315,299)

(91,961)

91,961 (4,911,018)

Bunker subsidy

164,986

9,842

11,036

185,864

Gross profit

776,792

137,823

344,011

46,998

15,057

1,320,681

• Dry bulk transportation, • Others and corporate

General and admin- istrative expenses Other income (ex- penses), net

(5,706)

(15,831)

(2,311)

(15,089)

(132,337)

(171,274)

Note 1 to the consolidated financial statements describes the operations related to the above segments. “Others and corporate” column consist of the vessel’s technical operations management and Group’s corporate activities. The Group’s management monitors the operational results of the segments separately for the purposes of making decisions about resource allocation and performance assessment. Segments’ performance is evaluated based on the profit or loss and measured consistently with the profit or loss in the consolidated financial statements.

(28,193)

7,057

387

(3,449)

(24,198)

Finance income

1,410

999

5,935

- -

8,344

Finance cost

(160,804)

(58,657)

(23,856)

(20,506)

(44,612)

(308,435)

Share in a result of an associate

82,153

The Group’s accounting policies used in the segment reporting is the same as the accounting policies described in note 4 to the consolidated financial statement.

Income before zakat & taxes

610,282

36,552

324,901

12,789

(77,253)

907,271

Intersegments revenues are recorded either at values that approximate third-parties selling prices or at prices mutually agreed by the management of the operating segments. Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ column.

Dry bulk transporta- tion

Adjustments and elimina- tions’

Oil transpor- tation

Head office and Others

2016

Chemical

Logistic

Total

Revenue

4,797,713 (3,527,352)

774,148 (611,325)

931,772 (666,368) 12,169 277,573

271,156 (225,366)

98,748 (85,053)

(85,053)

6,788,484

Operating cost Bunker subsidy Gross income

85,053 (5,030,411)

117,565

4,524

- -

134,258

1,387,926

167,347

45,790

13,695

1,892,331

General and admin- istrative expenses Other income (ex- penses), net Finance income

(15,432)

24,889

(12,009)

(108,510)

(111,062)

(44,219)

29,569

3,181

9,935

(1,508)

314

607

18,034 (32,309)

- -

18,955

Finance cost

(127,761)

(43,376)

(24,714)

(11,401)

(239,561)

Share in a result of an associate

147,044

Income before zakat & taxes

1,215,946

138,422

280,929

23,013

47,889

1,706,199

The Group›s vessels are deployed throughout the world and are not concentrated in certain geographical areas. The Group›s management does not consider geographical distribution by its management analysis of operations. Therefore, geographical segment information is not disclosed. The revenues of the crude oil transportation sector include SAR 2.5 billion for the year ending December 31, 2017 (SR 2016: SAR 3.4 billion) from one customer (ARAMCO and its subsidiaries - shareholders), which represents more than 10% of the revenues of Crude Oil Transportation and the Groups revenues as a whole.