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MIRA
INFORM REPORT
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Report Date : |
5th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
EQUATE PETROCHEMICAL CO KSC (C) |
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Registered Office : |
NBK
Building, Ahmadi, PO Box: 4733, Safat 13048, Kuwait |
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Country : |
Kuwait |
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Date of Incorporation : |
04.12.1995 |
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Legal Form : |
Sharikat Al Mouasahama Al Kuwaitia Al Mughlaqa (Kuwaiti Shareholding Company Closed – KSC (C) |
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Line of Business : |
Producers of chemical products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
US$
3,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
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Company
Name |
EQUATE PETROCHEMICAL CO KSC (C) |
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Country
of Origin |
Kuwait |
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Legal
Form |
Kuwaiti Shareholding Company Closed – KSC (C) |
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Registration
Date |
4th December 1995 |
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Trade
Licence Number |
63392 |
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Membership
Number |
48090 |
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Issued
Capital |
KD 86,000,000 |
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Paid
up Capital |
KD 86,000,000 |
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Total
Workforce |
860 |
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Line
of Business |
Producers of chemical products. |
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Financial
Condition |
Good |
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Payments |
Nothing detrimental uncovered |
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Operating
Trend |
Steady |
COMPANY NAME
EQUATE
PETROCHEMICAL CO KSC (C)
ADDRESS
Registered & Physical Address
Building : NBK Building
Area : Ahmadi
PO Box : 4733
Town : Safat 13048
Country : Kuwait
Telephone : (965) 4343666 / 4312568 / 3436661
Facsimile : (965) 4312560 / 4312557 / 4312558
Email : hayatm@shb.equate.com
Premises
Subject
operates from a large suite of offices that are rented and located in the
Central Business Area of Safat.
Branch Office (s)
Location Description
· PO Box : 9116 Sales
Office
Safat 13048
Tel :
(965) 2445655
Fax :
(965) 2415121
· Equate Complex Production
plant
PO Box : 9729
Ahmadi 61008
Tel :
(965) 3260326 / 3725630
· Shuaiba Administrative
Office
Tel : (965) 3260238
Fax : (965) 3260302
KEY PRINCIPALS
· Hamad Al Terkait President
· Abdul Baqi Al Nouri Chairman
· Saad A. Al Shweib Vice
President
· Fouad Al Khadra Managing
Director
· Abdul Karim A. Mubarak Finance
Director
· Nizar Z. Al Hamoui Director
· Turki S. Al Athrash Director
· Henry Roth Director
· Khalid Bahamra General
Manager
· Yousef Al Ateeqi Technical
Manager
· Tom Liles Production
Manager
· Travis Spoede Finance
Manager
· M. Al Mazeedi Logistics
Manager
· Fahd Al Sumaid Public
Relations Manager
LEGAL FORM & OWNERS
Date of Establishment : 4th December 1995 (Production began in November 1997)
Legal Form : Sharikat Al Mouasahama Al Kuwaitia Al Mughlaqa (Kuwaiti Shareholding
Company
Closed – KSC (C)
Trade Licence No. : 63392
Industrial Licence No. : 95-449-MM
Membership No. : 48090
Issued
Capital : KD 86,000,000
Paid
up Capital : KD 86,000,000
Name
of Shareholder (s) Share
Value Percentage
· Petrochemical Industries Company
KSC (PIC) * KD 38,700,000 45%
Shakir Al Kazimi Building
Khalid Ibn Waleed Street
PO Box : 1084
Safat 13011
Kuwait
Tel : (965) 2448280 / 2422141
Fax : (965) 2405791 / 2445913 / 3261544
· Union Carbide Co (UCC) ** KD
38,700,000 45%
Washington DC
United States of America
· Bubiyan Petrochemicals Co KD 8,600,000 10%
* Petrochemical Industries Company was founded
with the objective of setting up various types of petrochemical industries to
promote and diversify the sources of national income through the exploitation
of the natural gas that accompanies crude oil reserves.
AFFILIATED COMPANIES
Subject is partly owned by Petrochemical Industries Company KSC (PIC)
which in turn is wholly owned by Kuwait Petroleum Corporation (KPC), which has
overall responsibility for Kuwait’s local and foreign oil industry investments.
The following concerns are wholly or partly owned by KPC :
Name Percentage
Held
· Kuwait Oil Co (KOC) 100%
PO Box : 9758
Ahmadi 61008
Tel
: (965) 3989111 / 3984111
Fax :
(965) 3982661
· Kuwait National Petroleum Co
(KNPC) 100%
PO Box : 70
Safat 13001
Tel :
(965) 2420121 / 2449401
Fax :
(965) 2442954
· Kuwait Oil Tanker Co (KOTC) 100%
PO Box : 810
Safat 13009
Tel :
(965) 2455455
Fax :
(965) 2445907
· Kuwait Foreign Petroleum
Exploration Co (KUFPEC) 100%
PO Box : 5291
Safat 13053
Tel :
(965) 2421677
Fax :
(965) 2437985
· Kuwait Santa Fe Braun for
Engineering & Petroleum Enterprises KSC 100%
PO Box : 9282
Ahmadi 61003
Tel :
(965) 3985011
Fax :
(965) 3981030
· Kuwait Aviation Fuelling Co KSC (KAFCO) 100%
PO Box : 1654
Safat 13017
Tel :
(965) 4330507 / 4330483
Fax :
(965) 4330475
· SFIC Holdings (Cayman) Inc 100%
Cayman Islands
· KPC Holdings (Aruba) AEC 100%
· Petrochemical Industries Holdings
NV 100%
· KP North Sea Holdings Ltd 100%
· Gulf Industrial Investment Co EC 100%
· Kuwait Drilling Co KSC 49%
· Equate Marketing Co 49%
Bahrain
· Gulf Petrochemical Industries Co
(GPIC) 33%
Bahrain
· Sino Arab Chemical Fertilizer Co
(SACF) 30%
China
· Arabian Oil Company 10%
LINE OF BUSINESS
Operations
: Engaged in the
production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene.
Production began at the
US$ 2 billion Shuaiba complex in November 1997.
Subject has been awarded
the ISO 9002 certificate for all its operating units and also
received the ISO 14001
in 2004.
The company is going to build a new ethylene and derivatives complex in Shuaiba, named Olefins II project. Fluor Corporation has signed an MoU to provide engineering, procurement and construction management services for the utilities and infrastructure portion of the project. This scope is in addition to the programme management contract it was awarded in 2004 to perform overall management consultancy and front-end engineering services.
The
billion-plus-dollar project is located approximately 40 km, south of Kuwait
City in Shuaiba. Olefins II will include construction of an
850,000-tonnes-per-year (tpy) cracker, a 600,000 tpy ethylene glycol unit, a
450,000 tpy ethyl benzene/styrene monomer unit and a debottleneck expansion of
an additional 225,000 tpy of polyethylene capacity at the existing complex. Olefins
II will be similar in volume to the first project and, consequently, the
completed facility will double the capacity at the existing olefins complex.
Groundbreaking occurred in March 2005, with completion of the complex expected
in the second quarter of 2008.
Production
Capacity : Ethylene 800,000
tonnes per annum
Ethylene
Glycol 400,000 tonnes per
annum
Propylene 600,000 tonnes per annum
Import
Countries :
Europe and the United States of America.
Operating
Trend : Steady
Subject
has a workforce of approximately 860 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency
: United States Dollars (US$)
Net Profits
2002 US$
107,000,000
2003 US$
276,000,000
2004 US$
620,500,000
2005 US$
588,000,000
Local
sources consider subject’s financial condition to be Good.
Equate signs new financing of
long-term loan facility
Equate
Petrochemical Company signed a new financing facility in November 2001 for the
value of US$ 900 million. The original loan facility of US$ 1.2 billion was
obtained in 1996 and was structured on a project-loan basis. Due to the
company's financial success it is replacing its project loan with a corporate
loan.
Equate
had jointly mandated Citigroup, National Bank of Kuwait and Kuwait Finance
House to arrange the facility. Invitations were sent to a host of banks on 16th
October 2001, all of which have been involved with the company from its
beginning. Of the funds raised 60% came from local Kuwaiti banks. The remaining
percentage was contributed by both regional and international banking
organizations.
BANKERS
·
National
Bank of Kuwait SAK
Main Branch
Ahmadi
Tel :
(965) 3981188 / 3981189
Fax :
(965) 3985643
·
Bank
of Kuwait & the Middle East KSC
Abdullah Al Salem Street
Darwaza Abdul Razzak
PO Box : 71
Safat 13001
Tel :
(965) 2459771
Fax :
(965) 2461430
PAYMENT HISTORY
No
complaints regarding subject’s payments have been reported.
Date of
transaction September
2004 March 2005 March 2006
Credit
amount 50,000 56,000 340,000
Amount
overdue 0 0 0
Payment
terms 90 days 90 days 90 days
Payment
Method Letters of Credit Letters of Credit Letters of Credit
Paying
record No Complaints No Complaints No Complaints
Currency Pounds
Sterling Pounds Sterling Pounds Sterling
GENERAL COMMENTS
Equate
Petrochemical Co KSC (C) was incorporated in 1995 with production beginning in
1997. It is the largest petrochemical project in Kuwait and is 45% owned by the
well known Petrochemical Industries Company KSC (PIC).
During
the course of this investigation nothing detrimental was uncovered regarding
subject’s operating history or the manner in which payments are fulfilled. As
such the company is considered to be a fair trade risk.
Maximum
suggested credit figure: US$ 3,500,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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