Annual Report 2017
180
181
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
11 Consolidated Financial Statements
9. INVESTMENT IN AN ASSOCIATES (continued) 9.1. Petredec Limited (continued)
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
The table reconciles the summarized financial information to the carrying amount of the Group’s interest in Petredec as at 31 October:
9. INVESTMENT IN AN ASSOCIATES
October 31, 2017
October 31 , 2016
October 31 , 2015
The balance of investment in an associates as at December 31 contains investments in the following companies:
January 1, 2016
4,564,995 6,276,377 (3,480,982) (3,733,051)
4,678,728 5,700,871 (3,528,806) (3,368,469)
4,778,580 3,630,451 (2,325,825) (2,911,184)
Current assets
v
Note
2017
2016
Non-current assets Current liabilities Non-current liabilities
1,123,848
1,027,941
Petredec Limited
9-1 1,171,911
9-2
74,625
-
-
International Maritime Industries Company
Net assets before non-controlling interest
3,627,339
3,482,324
3,172,022
1,246,536
1,123,848
1,027,941
Non-controlling interest
(44,866)
(58,464)
(64,666)
Share premium
(108,333)
(108,333)
(108,333)
9.1. Petredec Limited
Net assets
3,474,140
3,315,527
2,999,023
The movement of investment in Petredec Limited as at December 31 is as follows:
Group’s share in net assets (30.30%)
1,052,734
1,004,671
908,764 119,177
January 1, 2016
Goodwill
2017
2016
119,177
119,177
Carrying amount of investment in an associates
1,171,911
1,123,848
1,027,941
Revenue
16,359,977 19,828,483
1,123,848
1,027,941
905,758 184,683 (62,500)
Beginning Balance
82,153
147,044 (51,137)
Share in results of an associated company
Net income before non-controlling interest
272,507
494,473
Dividends received during the year
(34,090)
Non-controlling interest
(1,402)
(9,228)
Ending balance
1,171,911
1,123,848
1,027,941
Total net income for the year
271,105
485,245 147,044
Group’s share of total comprehensive income (30.30%)
82,153
The fiscal year of Petredec Limited begins as at September 1 and ends as at August 31 of each Gregorian year. The Company’s share in Petredec Limited results for the financial year is recorded as per the latest financial statements prepared. The difference between the latest financial statements prepared by the associate company and the Group’s consolidated financial statements is two months. During 2017, the Group commenced the process to sell part of its 30.3% in Petredec Limited. As part of the arrangement, Haydock Holdings Limited, the other partner in Petredec Limited, will also sell part of its 69.7% stake in Petredec Limited, bringing the total ownership of the new investor to 13% of Petredec Limited share capital. The Group expects the sale to take place during the first quarter of 2018, after fulfilling certain conditions including shareholders’ approval, governmental and regulatory approvals. The Group has reclassified Petredec’s share from “investment in an associates” to “Investment held for sale” amounting to SR 251 million as at December 31, 2017 which represents the carrying value of the assets held for sale
The associate has SAR 1.3 billion contingent liabilities and capital commitments as at October 31, 2017 (October 31, 2016: SAR 1.2 billion, October 31, 2015: SAR 3.6 billion).
9.2. International Maritime Industries Company During 2017, International Maritime Industries Company wes established in KSA with capital of SR 375 million between the Company, ARAMCO, Hyundai Heavy Industries (South Korean Company) and Lamprell (a UAE-based company). The Group’s share in the established company represents 19.9% and amounting to SR74.6 million. The new company has not started its operations yet as at December 31, 2017. 10. RECEIVABLES FROM FINANCE LEASE On January 30, 2009, National Chemical Carriers Limited Co. (a subsidiary) signed an agreement with Odfjell (hereafter: lessee) to charter three vessels under a bareboat arrangement for a period of 10 years with a purchase option after three years. These ships were delivered to lessee on February 1, 2009. The arrangement is considered as a finance lease as it transfers to lessee substantially all the benefits and risks and gives the lessee a purchase option under the arrangement.
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