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MIRA
INFORM REPORT
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Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SAUDI BASIC INDUSTRIES CORPORATION
(SABIC) |
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Registered Office : |
Sabic Complex, Sitteen Street,
Al Maather District, 5101 &
59090, Riyadh 11422 |
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Country : |
Saudi Arabia |
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Date of Incorporation : |
1976 |
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Com. Reg. No.: |
1010010813 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacturers of basic chemicals,
intermediates, polymers, fertilizers and metals |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Maximum Credit Limit : |
US$ 10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear
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SUMMARY
|
Company Name |
SAUDI BASIC INDUSTRIES CORPORATION
(SABIC) |
|
Country of Origin |
Saudi Arabia |
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Legal Form |
Joint Stock Company |
|
Registration Date |
1976 |
|
Commercial Registration
Number |
1010010813, Riyadh |
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Issued Capital |
SR 15,000,000,000 |
|
Paid up Capital |
SR 15,000,000,000 |
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Total Workforce |
16,000 |
|
Line of Business |
Manufacturers of basic chemicals, intermediates, polymers, fertilizers
and metals |
|
Financial Condition |
Strong |
|
Payments |
Prompt |
|
Operating Trend |
Steady |
COMPANY NAME
SAUDI BASIC INDUSTRIES CORPORATION
(SABIC)
ADDRESS
Registered & Physical Address
Building : Sabic Complex
Street : Sitteen Street
Area : Al Maather District
PO Box : 5101 & 59090
Town : Riyadh 11422
Country : Saudi Arabia
Telephone : (966-1) 4012033 / 4069900 / 2258000
Facsimile : (966-1) 4012045 / 4013831 / 2259000
Premises
Subject operates from a large
suite of offices that are owned and located in the Central Business Area of Riyadh.
Branch Office (s)
Location Description
PO Box : 10040 Factory
premises
Al Jubail 31961
Tel : (966-3) 3477200
Fax : (966-3) 3411552
PO Box : 30382 Factory
premises
Yanbu
Tel : (966-4) 3211660
Fax : (966-4) 3211754
PO Box : 2629 Factory premises
Dammam 31461
Tel : (966-3) 8575000
Fax : (966-3) 8578075
PO Box : 5027 Office
premises
Al Qassim
Tel : (966-6) 3220866
Fax : (966-6) 3220376
PO Box : 30204 Office
premises
Jeddah 21477
Tel : (966-2) 6352802
Fax : (966-2) 6362561
KEY PRINCIPALS
Prince Saud Bin Thunayan Al Saud Chairman
Mohamed S. Abanumay Director
Ahmed Al Hakami Director
Abdullah M. Al Issa Director
Saleh E. Al Husseini Director
Abdulmohsen
A. Al Fares Director
Mohamed H. Al Madi Chief
Executive Officer
Abdullah Nojaidi Manager –
Petrochemicals
Abdulrahman Al Ubaid Manager
– Polyolefins
Fahad Al Sheaibi Manager – PVC / Polyester
Khaled Al Mana Manager
– Intermediate Chemicals
Mohammad Al Jaber Manager –
Metals
Nasser Al Sayyari Manager –
Fertilisers
Yousef Al Zamel Manager –
Basic Chemicals
Ibrahim Al Shuweir Manager – Research & Technology
Homood Al Tuwaijri Manager –
Finance
Mohammad Al Bat'hi Manager – Human
Resources
LEGAL FORM & OWNERS
Date of Establishment :
6/9/1396 Hijri (corresponding to 1976)
Legal Form : Joint Stock Company
Commercial Reg. No. :
1010010813, Riyadh
Issued Capital : SR 15,000,000,000
Paid up Capital : SR 15,000,000,000
Name of Shareholder
(s) Percentage
Government of Saudi Arabia 70%
Local businessmen and private
investors 30%
Notes to the legal Form
A joint stock company or
corporation consists of five or more shareholders who are liable for the debts
of the company to the extent of their capital contribution. The company may be
incorporated only upon the approval of the Minister of Commerce or upon the
issuance of a Royal Decree. The share capital must not be less than SR
2,000,000, or SR 10,000,000 if the public is invited to subscribe, and it must
be divided into shares of equal value with a par value of SR 50 or more. At
least 50% of the capital is required to be paid in upon incorporation.
AFFILIATED COMPANIES
Name Percentage Held
Saudi Iron & Steel Company
(Hadeed) 100%
Madinat Al Jubail Al Sinaiyah
PO Box : 10053
Jubail
Saudi Arabia
Tel : (966-3) 3571100
Fax : (966-3) 3587385
Sabic Marketing Ltd 100%
PO Box : 59090
Riyadh 11525
Saudi Arabia
Tel : (966-1) 4012033 / 4069900
Fax : (966-1) 4012076 / 4068291
Arabian Petrochemical Company
(Petrokemya) 100%
Jubail Industrial City
PO Box : 10002
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3587000
Fax : (966-3) 3584480
Saudi Methanol Company (Ar Razi) 50%
Industrial Area
PO Box : 10065
Dammam 31433
Saudi Arabia
Tel : (966-3) 3577820
Fax : (966-3) 3580838
Saudi Petrochemical Company
(Sadaf) 50%
PO Box : 10025
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3573000
Fax : (966-3) 3573142
National Methanol Company (Ibn
Sina) 50%
PO Box : 10003
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3405500
Fax : (966-3) 3405604
Saudi Yanbu Petrochemical Company
(Yanpet) 50%
Yanbu Industrial City
PO Box : 30333
Yanbu 21441
Saudi Arabia
Tel : (966-4) 3965000
Fax : (966-4) 3965006
Al Jubail Petrochemical Company
(Kemya) 50%
Jubail Industrial City
PO Box : 10084
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3576000
Fax : (966-3) 3587858
Eastern Petrochemical Company
(Sharq) 50%
Industrial Area
PO Box : 10035
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3575005
Fax : (966-3) 3580383
Ibn Hayyan Plastic Product Co
(Tayf) 50%
PO Box : 10273
Al Jubail 31961
Tel : (966-3) 3584000
Fax : (966-3) 3587577
National Plastic Company (Ibn
Hayyan) 50%
Industrial Area
PO Box : 10002
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3587000
Fax : (966-3) 3584736
Saudi European Petrochemical Co
(Ibn Zahr) 50%
Industrial City
PO Box : 10330
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3415060
Fax : (966-3) 3412966
National Industrial Gases Company
(Gas) 50%
Jubail Industrial City
PO
Box : 10110
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3575700
Fax : (966-3) 3588880
Al Jubail Fertiliser Company
(Samad) 50%
Industrial Area
PO Box : 10046
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3416488
Fax : (966-3) 3417122
National Chemical Fertiliser Co
(Ibn Al Baytar) 50%
Industrial Area
PO Box : 10283
Al Jubail 31961
Saudi Arabia
Tel : (966-3) 3419988 / 3411100
Fax : (966-3) 3411257
Saudi Arabian Fertilizer Company
(Safco) 42.99%
Dammam - Al Khobar Highway
PO Box : 553
Dammam 31421
Saudi Arabia
Tel : (966-3) 8575011 / 8575208
Fax : (966-3) 8574311
REGIONAL JOINT VENTURES
Aluminium Bahrain (Alba)
PO Box : 570
Manama
Bahrain
Tel : (973) 830000
Fax : (973) 662120
Gulf Petrochemical Industries Co
(Gpic)
PO Box : 26730
Manama
Bahrain
Tel : (973) 731777
Fax : (973) 731047
Gulf Aluminium Rolling Mill
Company (Garmco)
PO Box : 20725
Manama
Bahrain
Tel : (973) 731000
Fax : (973) 730542
Bahrain Saudi Alum Marketing Co
(Balco)
PO Box : 20079
Manama
Bahrain
Tel : (973) 532626
Fax : (973) 532727
Sabic Marketing America Inc
Metro Centre
1 Station Place
Stamford, CT 06902
United States of America
Tel : (1-203) 3535350
Fax : (1-203) 3535353
Sabic Services America Inc
Suite 1600, 2 Westlake Park
580 Westlake Park Boulevard
Houston, TX 77079
United States of America
Tel : (1-281) 4977776
Fax : (1-281) 4977898
Sabic Marketing Europe Ltd
Kensington Centre
66 Hammersmith Road
London W14 8YT
United Kingdom
Tel : (44-171) 3714488
Fax : (44-171) 3713039 / 3713041
Sabic Marketing Services Asia Ltd
The Imperial Tower 13-C6
1-1-1Uchisaiwaicho
Chiyoda-Ku
Tokyo 100
Japan
Tel : (81-3) 35937260
Fax : (81-3) 35018496
Sabic Marketing Deutschland GmbH
Limbecker Platz 1
PO Box : 103325
Essen
Germany
Tel : (49-201) 8207520
Fax : (49-201) 8207520
Sabic Services Pacific Pte Ltd
28-01 IBM Towers
80 Anson Road
Singapore 079907
Tel : (65) 2273307
Fax : (65) 2273367
Sabic Marketing Asia Ltd
Suite 1204-8, 2 Pacific Place
88 Queensway Road
Hong Kong
Tel : (85-2) 25246161
Fax : (85-2) 28680131
Sabic France Ltd
13 Rue Royale
75008 Paris
France
Tel : (33-1) 58183950
Fax : (33-1) 58183951
Sabic Italia Spa
Via S. Clement
1-20122 Milan
Italy
Tel : (39-02) 86464741
Fax : (39-02) 86465421
Sabic Iberica SA
Avenue Diagonal 615
08028 Barcelona
Spain
Tel : (34-93) 5554900
Fax : (34-93) 3221307
Sabic India Ltd
Qutab Hotel
New Delhi 110016
India
Tel : (91-11) 6850861
Fax : (91-11) 6862788
Sabic UAE
Api World Tower, 4th
Floor
PO Box : 25982
Sheikh Zayed Road
Dubai
United Arab Emirates
Tel : (971-4) 3322210
Fax : (971-4) 3322218
Sabic Far East Ltd
Jaka Building, 10th
Floor
6780 Ayala Avenue
Makati City
Manila
Philippines
Tel : (63-2) 8124136
Fax : (63-2) 8935284
Sabic Far East Ltd
2022 Korea World Trade Center
159 Samsung Dong Kangnam Ku
Seoul 135729
South Korea
Tel : (82-2) 5512247
Fax : (82-2) 5512254
Sabic Far East Ltd
Room 1401, Novel Plaza
128 Nan Jing Road West
Shanghai 200003
China
Tel : (86-21) 63509169
Fax : (86-21) 63509173
Sabic Far East Ltd
Hung Tai World Building, Unit D, 5th
Floor
Tun Hwa Road
Taipei
Taiwan
Tel : (886-2) 25450300
Fax : (886-2) 25450199
LINE OF BUSINESS
Operations : Engaged in the manufacture of basic chemicals,
intermediates, polymers, fertilizers and metals.
Basic Chemicals - SABIC’s basic
chemicals include methanol, ethylene, propylene, benzene, xylene, MTBE (Methyl
Tertiary Butyl Ether), Styrene, CIE (Crude Industrial Ethanol), butadiene and
butene-1.
Intermediates - Intermediates chemicals
such as EG, EDC, VCM, 2-EH, Caustic Soda and DOP are ingredients used by the
petrochemical industry to manufacture other products. Intermediates chemicals
are produced for use by SABIC and for export to industries around the world
using basic chemicals as raw materials. The intermediates sector also produces
a range of industrial gases - Oxygen, Nitrogen, Argon and Krypton-Xenon.
Polymers - SABIC is one of the
largest exporters of plastics in the world with a production capacity of nearly
4 million tons. They produce three different polyethylenes; polypropylene, PVC
and general purpose, high impact and expandable polystyrenes. They produce
polyester fibers and filaments, textile grade chips and PET packaging resins
and also melamine.
Fertilizers - SABIC's fertilizer
group is dedicated to helping the worldwide agriculture industry produce higher
yields of quality crops to feed an ever-growing global population. The range of
products includes, ammonia and urea, as well as compound, phosphate and liquid
fertilizers. SABIC is now the world's largest exporter of urea. SABIC’s
nitrogen, phosphate and compound fertilizers are used in an increasing number
of applications to improve food security worldwide. In Saudi Arabia, SABIC
fertilizers provide the essential nutrients needed to achieve impressive crop
yields from farm acreage that until recently had been arid desert.
Metals - The Metals Group is a
major part of SABIC's diversified manufacturing portfolio in Saudi Arabia.
Today, its wholly owned Saudi Iron & Steel Co (Hadeed) affiliate is the
leading steel maker in the Gulf region. Since 1983, Hadeed has produced long steel products for the
Kingdom's construction industry. Its output now includes flat, hot and cold
rolled steel for expanding Saudi and regional engineering and manufacturing
industries. The Metals Group also manages large offshore aluminum manufacturing
shareholdings in Bahrain, as well as the sales and marketing of ferro-alloys
produced in Saudi Arabia.
Import & Export Countries : Worldwide
Brand Names : SABIC
Operating Trend : Steady
Subject has a workforce of
approximately 16,000 employees.
FINANCIAL HIGHLIGHTS
Financial highlights provided by
outside sources are given below :
Currency : Saudi Riyals (SR)
Consolidated
Balance Sheet 2004
2005
ASSETS
Current Assets
Cash 23,245,131,000 28,077,000,000
Accounts Receivable 13,504,142,000 14,214,000,000
Inventories 9,154,624,000 10,925,000,000
Other Receivables And Prepayments 2,834,143,000 3,593,000,000
Total Current Assets 48,738,040,000 56,809,000,000
Investments 2,689,971,000 6,209,000,000
Property, Plant And Equipment 63,843,751,000 65,613,000,000
Intangible assets 5,998,646,000 5,282,000,000
Other non current assets 3,674,238,000 3,337,000,000
Total Assets 124,944,646,000 137,250,000,000
LIABILITIES
Current Liabilities
Accounts Payable 8,298,460,000 8,292,000,000
Short-Term bank facilities 483,529,000 135,000,000
Current Portion Of Long-Term
Loans 6,050,315,000 10,825,000,000
Accrued Liabilities &
provisions 7,951,672,000 6,654,000,000
Total Current Liabilities 22,783,976,000
25,906,000,000
Non-Current Liabilities
Long-Term Loans 27,292,725,000 19,269,000,000
Other non current liabilities 4,150,242,000 5,928,000,000
Total Non Current Liabilities 31,442,967,000 25,197,000,000
Minority Interests 19,835,371,000 23,770,000,000
SHAREHOLDERS' EQUITY
Paid-Up Capital 15,000,000,000 20,000,000,000
Statutory Reserves 7,500,000,000 9,419,000,000
R&D Reserve 1,291,691,000 1,292,000,000
General Reserves 13,881,503,000 17,589,000,000
Retained Earnings 13,209,138,000 14,077,000,000
Total Shareholders' Equity 50,882,332,000 62,377,000,000
Total Liab. & S/Holders'
Equity 124,944,646,000 137,250,000,000
Consolidated
Income Statement 2004 2005
Sales 68,539,076,000 78,206,000,000
Cost Of
Sales (41,604,638,000) -
Gross
Profit 26,934,438,000 -
General
And Administrative Expenses (3,429,494,000) -
Income
from Operations 23,504,944,000 -
Other
Income 1,299,199,000 -
Financial
Charges
(1,020,541,000) -
Loss
arising from a legal case
(1,782,355,000) -
Income
before minority interests and Zakat 22,001,247,000 -
Minority
Interests (7,337,559,000) -
Income
Before Zakat 14,663,688,000 -
Zakat (450,000,000) -
Net
Income for the year 14,213,688,000 19,196,000,000
Local sources consider subject’s
financial condition to be Strong. Please note that subject has yet to publish
its consolidated income statement for 2005.
BANKERS
National Commercial Bank
Malaz Branch
PO Box : 42536
Riyadh 11551
Tel : (966-1) 4776450
Fax : (966-1) 4769502
Arab National Bank
King Faisal Street
PO Box : 56921
Riyadh 11564
Tel : (966-1) 4029000
Fax : (966-1) 4027747
PAYMENT HISTORY
Subject’s payment record is
reported to be met in a generally prompt manner.
Date of transaction July 2002 January 2005
Credit amount 250,000 397,024
Amount overdue 0 0
Payment terms 60
days 60
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Canadian
Dollars Canadian
Dollars
GENERAL COMMENTS
Established in 1976, SABIC is
widely regarded as the largest manufacturing company in the Middle East.
Engaged in the manufacture of basic chemicals, intermediates, polymers,
fertilizers and metals.
It is planned that SABIC’s annual
production capacity in 2006 will reach 51 million metric tons due to the coming
on-stream of a number of expansion projects.
Local sources report subject has
made very good progress in the international market and enjoys a good
reputation for the quality of its products. The operating history is clear with
payment obligations met in a timely manner. As such subject is considered to be
a fair trade risk.
Maximum suggested credit figure:
US$ 10,000,000
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)