Bahri Annual Report-2017

Annual Report 2017

196

197

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

11 Consolidated Financial Statements

31. NON-CONTROLLING INTERESTS IN SUBSIDIARIES

Set out below is summarized financial information for each subsidiary that has non-controlling interests, shown in note 1:

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

2017

29. CAPITAL COMMITMENTS AND CONTINGENCIES (continued)

National Chemical Car- rier Company Limited

Bahri Dry Bulk LLC

Capital commitments (continued) The Group signed a joint venture agreement on May 30, 2017 with Saudi Arabian Oil Company (ARAMCO), Hyundai Heavy Industries Ltd. (South Korea) and Lamprell Power Company Limited (a UAE-based company) to enter into a partnership for the establishment, development, and operation of a maritime yard in Ras Al Khair near Jubail Industrial City. The partners will inject SR 2.625 billion (USD 700 million) of the project cost. The Group will contribute SR 522.38 million (USD 139 million) with a 19.9% ownership, while ARAMCO will own 50.1%, Lamprell Power Company Limited will own 20%, and Hyundai Heavy Industries' share is 10%. The Group has signed a purchase contract for at least 75% of its commercial vessel needs over a period of 10 years from the start date of the project, equivalent to 52 vessels, including oil tankers “VLCC” based on the commercial rules.

Total

Non-controlling interest Percentage

20%

40%

Non-current assets

3,096,785

578,613 110,229 (294,154) (65,578)

3,675,398

Current assets

456,312

566,541

Non-current liabilities

(1,669,399)

(1,963,553)

Current liabilities

(451,948)

(517,526)

Non-controlling interests relating to the subsidiary

-

12.048

12.048

Contingencies

Net assets

1,431,750

341,158 136,463

1,772,908

The Group has outstanding letters of guarantee of SR 314 million as at December 31, 2017 (2016: SAR 298 million, 1 January 2016: SR 297 million) issued during the Group’s normal course of business.

Net assets attributable to non-controlling interests

286,350

422,813

The Group is involved in legal litigation claims in the ordinary course of business, other than what has been disclosed in, which are being defended, there are also some claims under the process of final settlement. The Group’s management does not expect that these claims will have a material adverse effect on the Group’s consolidated financial statements.

Revenue

805,270

362,297

1,167,567

Net income

14,429

8,280 3,312

22,709

Net income attributable to non-controlling interests

2,886

6,198

Operating lease commitments – Group as a lessor

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities

75,246

17,213

92,459

The Group was committed to leasing certain of its vessels to a related party based on time charter agreement. The future amounts receivable under this lease agreement are as follow:

161,813 (226,966)

(14,188) (29,330) (26,305)

147,625 (256,296) (16,212)

1 January 2016

Increase (decrease) in cash and cash equivalents

10,093

2017

2016

2016

584,382

Within one year

536,336

495,476

National Chemical Car- rier Company Limited

1,672,135

After one year but not more than five years

1,372,579

1,481,939

Bahri Dry Bulk LLC

Total

939,822

More than five years

703,042

569,852

3,196,339

2,611,957

2,547,267

40%

Non-controlling interest Percentage

20%

Income from time charter agreements under operating lease amounted SR 584 million for the year endeding December 31, 2017 (2016: SAR 462 million).

559,202 143,511 (322,478) (65,578) 314,657 125,863

Non-current assets

3,356,214

3,915,416

Current assets

378,752

522,263

30.DIVIDENDS The Board of Directors decided in its meeting held on December 31, 2017 to recommend to the General Assembly of the Company the distribution of cash dividends of SAR 591 million to the shareholders for the financial year ending December 31, 2017, which amounted to SAR 1.5 per share. The General Assembly of the shareholders of the Company approved in its meeting held on January 16, 2017 the distribution of cash dividends of SR 984.38 million to the shareholders for the financial year ending December 31, 2016, which amounted to SR 2.5 per share, and represented 25% of the share par value. These dividends were paid on January 31, 2017. The General Assembly of the shareholders of the Company approved distribution of SAR 1.8 million to the Board of Directors. The General Assembly of the shareholders of the Company approved in its meeting held on April 6, 2016 the distribution of cash dividends of SR 984.38 million to the shareholders for the financial year ended December 31, 2015, which amounted to SR 2.5 per share, and represented 25% of the share par value. These dividends were paid on April 21, 2016. The General Assembly of the shareholders approved the Board of Directors remuneration distribution of SAR 1.8 million.

Non-current liabilities

(1,679,586) (638,850) 1,416,530

(2,002,064) (704,428) 1,731,187

Current liabilities

Net assets

Net assets attributable to non-controlling interests

283,306

409,169

271,156

Revenue

774,148 115,415

1,045,304

21,930

Net income

137,345

8,772

Net income attributable to non-controlling interests

23,083

31,855

52,101

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Increase in cash and cash equivalents

332,921 (707,818) 459,091

385,022 (708,138) 410,767

(320)

(48,324)

3,457

84,194

87,651

The balance of unclaimed dividends as at December 31, 2017 amounted to SR 40 million (2016: SR 37.4 million, January 1, 2016: SR 35 million) (note 20).

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