Bahri Annual Report-2013

13. Ships Under Construction and Others The movement in the account of ships under construction and others for the year ended December 31 is as follows: 2013 The Company National Chemical Carriers Bahri Dry Bulk LLC The National Shipping Company of Saudi Arabia (A Saudi Joint Stock Company) Notes To The Consolidated Financial Statements - December 31, 2013 (In Thousands Saudi Riyals) Total Chapter 5 Consolidated Financial Statements and Auditor’s Report for the year ended 31 December 2013

Beginning balance

697,969

322,988

151,034

1,171,991

Additions

818,744

132,008

209,609

1,160,361

Disposals

-

(184,854)

-

(184,854)

Transferred to fixed assets

(1,076,400)

(270,142)

(124,488)

(1,471,030)

Ending balance

440,313

-

236,155

676,468

2012 The Company National Chemical Carriers

Bahri Dry Bulk LLC

Total

Beginning balance

316,836

919,832

462

1,237,130

Additions

382,980

102,045

150,922

635,947

Disposals

-

(51,750)

-

(51,750)

Transferred to fixed assets

(1,847)

(647,139)

(350)

(649,336)

Ending balance

697,969

322,988

151,034

1,171,991

Total capitalized borrowing costs during the year 2013 are amounted to SR 10.14 million (2012: SR 13.39 million). On December 24, 2012, NCC terminated the contract for building the last vessel as a result of SLS’s failure to deliver it according to the time schedule specified in the contract signed in 2007 and its amendments signed in 2012. The contract states that NCC has the right to terminate the contract if the delay period exceeded the allowed period. On February 2013, all paid installments were recovered amounting to USD 41.6 million plus compensation. As a result of this settlement, an amount of SR 16.32 million was recognized as other income (note 21). On 9 January 9, 2014, the Company received a new vessel, specialized in conveying general cargo, has been constructed by Hyundai Mipo in South Korea. This vessel is the fifth one among other six vessels have been agreed to construct it with this shipyard in the year 2011 with a total value of SR 1.543 million , the financial impact of this vessel will be presented effective from the first quarter of the year 2014. Accordingly, the Company still has one outstanding vessel under construction with Hyundai Mipo company, which will be received during the first half of the year 2014. On November 29, 2013, Bahri Dry Bulk LLC (subsidiary company) received the first specialized vessel to convey bulk cargo among five vessels have been agreed to construct it in 2012 with one of the global shipyards prominent in the field of vessel construction in Japan. On January 2014 the subsidiary company received another vessel. Accordingly, the subsidiary company still has three outstanding vessels under construction, which will be received consecutively during the first half of the year 2014.

14. Accounts Payable and Accruals Accounts payable and accruals at December 31 comprise the following:

2013

2012

Trade payables

242,126

176,287

Value of shares sold belonging to previous shareholders

22,004

22,134

Accrued expenses

17,588

28,910

Others

1,047

2,982

282,765

230,313

84/85

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