6- Bareboat lease receivable, net On January 30, 2009, National Chemical Carriers Ltd. Co. signed agreements with Odfjell to charter three vessels under a bareboat arrangement for a period of ten years with a purchase option after three years. These ships were delivered to Odfjell on February 1, 2009. The arrangement is considered as a finance lease as it transfers to Odfjell substantially all the benefits and risks and also gives Odfjell a purchase option under the arrangement. The net bareboat lease receivable balance as of December 31 is summarized as follows: Description 2014 2013 Future minimum lease receipts 292,860 354,105 Unguaranteed residual value at the end of the lease term 247,875 247,875 540,735 601,980 Unearned income (161,313) (207,301) Net bareboat lease receivable balance 379,422 394,679
The above amount is classified as the follow- ing at December 31 Current portion
21,140
15,256
358,282
Non-current portion
379,423
Net bareboat lease receivable balance
379,422
394,679
The future minimum lease receipts and unguaranteed residual value at the end of lease term to be received during the next five years and thereafter for the year ended 31 December as follows: Description 2014 2013 Within one year 65,351 61,245 1-2 years 69,649 65,351 2-3 years 73,564 69,649 3-4 years 77,670 73,564 4-5 years 254,501 77,670 Thereafter - 254,501 540,735 601,980
Income related to the above arrangement for the year ended December 31, 2014 amounted to SR 45.99 million (2013: SR 47.17 million) and is included in operating revenues in the consolidated statement of income.
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The National Shipping Company of Saudi Arabia ( )
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