INVESTMENT IN AMAK |
15. INVESTMENT IN AMAK
As of September 30, 2015, and December 31, 2014, the Company had a non-controlling equity interest (35%) of approximately $50.7 million and $53.0 million, respectively. Our investment is accounted for under the equity method.
AMAK’s financial statements were prepared in the functional currency of AMAK which is the Saudi Riyal (SR). In June 1986 the SR was officially pegged to the U. S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR.
The summarized results of operation and financial position for AMAK are as follows:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
(Thousands of Dollars) |
|
Sales |
|
$ |
19,874 |
|
|
$ |
16,957 |
|
|
$ |
38,458 |
|
|
$ |
47,655 |
|
Gross Profit (Loss) |
|
|
(2,711 |
) |
|
|
1,785 |
|
|
|
35 |
|
|
|
6,469 |
|
General, administrative and other expenses |
|
|
4,067 |
|
|
|
3,714 |
|
|
|
9,605 |
|
|
|
11,285 |
|
Net Loss |
|
$ |
(6,778 |
) |
|
$ |
(1,929 |
) |
|
$ |
(9,570 |
) |
|
$ |
(4,816 |
) |
Depreciation, depletion and amortization |
|
|
4,235 |
|
|
|
5,930 |
|
|
|
15,250 |
|
|
|
16,744 |
|
Net Income (Loss) before depreciation, depletion and amortization |
|
$ |
(2,543 |
) |
|
$ |
4,001 |
|
|
$ |
5,680 |
|
|
$ |
11,928 |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
(Thousands of Dollars) |
|
Current assets |
|
$ |
31,904 |
|
|
$ |
17,782 |
|
Noncurrent assets |
|
|
261,623 |
|
|
|
265,584 |
|
Total assets |
|
$ |
293,527 |
|
|
$ |
283,366 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
21,216 |
|
|
$ |
23,034 |
|
Long term liabilities |
|
|
89,156 |
|
|
|
67,598 |
|
Shareholders' equity |
|
|
183,155 |
|
|
|
192,734 |
|
|
|
$ |
293,527 |
|
|
$ |
283,366 |
|
The equity in the income or loss of AMAK reflected on the consolidated statement of income for the three and nine months ended September 30, 2015, and 2014, is comprised of the following:
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
(Thousands of Dollars) |
|
Company’s share of loss reported by AMAK |
|
$ |
(2,391 |
) |
|
$ |
(680 |
) |
|
$ |
(3,375 |
) |
|
$ |
(1,698 |
) |
Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK |
|
|
337 |
|
|
|
337 |
|
|
|
1,011 |
|
|
|
1,011 |
|
Equity in loss of AMAK |
|
$ |
( 2,054 |
) |
|
$ |
(343 |
) |
|
$ |
(2,364 |
) |
|
$ |
(687 |
) |
See our Annual Report on Form 10-K for the year ended December 31, 2014, for additional information.
|