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MIRA
INFORM REPORT
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Report Date : |
28.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SAUDI ARABIAN
FERTILIZER COMPANY (SAFCO) |
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Registered Office : |
Dammam – Al
Khobar Highway, P O Box 553, Dammam 31421 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1965 |
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Com. Reg. No.: |
2050001841, Dammam |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Production and
marketing of urea, ammonia, melamine and sulphuric acid. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
SUMMARY
Company Name : SAUDI ARABIAN FERTILIZER COMPANY (SAFCO)
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 1965
Commercial Registration Number : 2050001841, Dammam
Issued Capital : SR 2,000,000,000
Paid up Capital : SR 2,000,000,000
Total Workforce : 1,200
Line of Business : Production and marketing of urea, ammonia,
melamine and sulphuric acid.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
SAUDI ARABIAN
FERTILIZER COMPANY (SAFCO)
ADDRESS
Registered & Physical Address
Location : Dammam – Al Khobar Highway
PO Box : 553
Town : Dammam 31421
Country : Saudi Arabia
Telephone : (966-3) 8575011 / 8575208
Facsimile : (966-3) 8573563 / 8574311
Email : ahumyyed@safco.net
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Dammam.
Branch Office (s)
Location Description
·
Jubail
Industrial City Owned
manufacturing complex
PO Box: 11044
Jubail 31961
Tel: (966-3) 3411100 / 3406617
Fax: (966-3) 3411257 / 3412568
KEY PRINCIPALS
·
Abdulaziz Bin
Nasir Al Majid Chairman
·
Yousuf A. Al
Zamil Vice
Chairman
·
Mohamed H. Al
Ohaili Director
·
Abdulaziz S.
Al Anbar Director
·
Ibrahim M. Al
Saif Director
·
Salem S. Al
Harbi Director
·
Abdulrahman S.
Al Garawi Director
·
Abdullah S. Al
Humyyed Chief
Executive Officer
·
Dahash M. Al
Rashidi Finance
& Administration Manager
LEGAL FORM &
OWNERS
Date of Establishment : Subject was
established under Royal Act no. M/13 dated 11/05/1385 Hijri
(Corresponding to 1965).
Legal Form :
Joint Stock Company
Commercial Reg. No. : 2050001841,
Dammam
Issued Capital : SR 2,000,000,000
Paid up Capital : SR 2,000,000,000
Name of Shareholder
(s) Percentage
·
Saudi Arabian
Basic Industries Corporation (SABIC) 41%
·
Safco
Employees 10%
·
Members of the
public and private investors 49%
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 Stake
Held
·
National
Chemical Fertilizer (Ibn Al-Baytar) 50.00%
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Sanabic 45.00%
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Arabian
Industrial Fibers Co (Ibn Rushd) 8.86%
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Gulf Metal
Casts 5.00%
LINE OF BUSINESS
Operations : Engaged in the production and marketing of
urea, ammonia, melamine and sulphuric acid.
Construction of an Ammonia and Urea plant in Dammam was started September 1966 and commercial production for Urea & Ammonia was started March 1970 with capacity of 202,000 metric tonnes per annum (mt/y) of Ammonia and 330,000 (mt/y) of Urea fertilizer.
Inline with company strategy of diversifying income sources; in 1979 SAFCO constructed a sulphuric acid plant with a production capacity of 100,000 (mt/y).
Additional income and production diversification led to the establishment of a 20,000 (mt/y) melamine plant in 1983.
In June 1995 Safco received its ISO 9002 certification from Lloyds Register Quality Assurance (LRQA) of the United Kingdom.
During 1993 to 2000 the company underwent significant expansion in the field of the production of the chemical fertilizers, by establishing four factories in the Jubail Industrial City with a capacity of 1.2 million (mt/y) of Urea and 1 million (mt/y) of Ammonia so that in 2001 the actual production of all the products was 2.83 million (mt/y).
Production
Capacity: 2,850,000 tonnes per annum
Import Countries
: Europe, the Far East and
the United States of America.
Export Countries
: Vietnam, Thailand, China
and India.
Operating Trend
: Steady
Subject has a
workforce of approximately 1,200 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : Saudi
Riyals (SR)
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Balance Sheet for the period ending |
31/12/2004 |
31/12/2005 |
31/12/2006 |
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Current Assets |
700,272 |
861,796 |
1,268,770 |
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Inventory |
253,166 |
235,215 |
267,716 |
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Investments |
913,692 |
975,823 |
908,072 |
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Fixed Assets |
3,180,279 |
3,922,873 |
4,025,640 |
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Other Assets |
232,379 |
211,618 |
203,821 |
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Total Assets |
5,279,788 |
6,207,325 |
6,674,019 |
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Current Liabilities |
409,746 |
415,619 |
534,270 |
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Non-Current Liabilities |
320,000 |
695,000 |
1,063,214 |
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Other Liabilities |
302,125 |
308,638 |
337,158 |
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Shareholder's Equity |
4,247,917 |
4,788,068 |
4,739,377 |
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Total Liabilities & Shareholders Equity |
5,279,788 |
6,207,325 |
6,674,019 |
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Profit and Loss for the period ending |
31/12/2004 |
31/12/2005 |
31/12/2006 |
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Sales |
1,356,516 |
1,823,985 |
1,831,252 |
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Sales Cost |
686,472 |
749,319 |
741,003 |
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Total Income |
670,044 |
1,074,666 |
1,090,249 |
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Other Revenues |
97,385 |
160,800 |
189,874 |
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Total Revenues |
767,429 |
1,235,466 |
1,280,123 |
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Admin and Marketing Expenses |
72,333 |
93,113 |
101,799 |
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Depreciation |
0 |
0 |
0 |
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Other Expenses |
0 |
0 |
0 |
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Total Expenses |
72,333 |
93,113 |
101,799 |
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Net Income Before Zakat |
695,096 |
1,142,353 |
1,178,324 |
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Zakat |
35,000 |
42,203 |
27,000 |
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Net Income |
660,096 |
1,100,150 |
1,151,324 |
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Balance First Period |
124,328 |
158,414 |
402,963 |
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Reserves |
66,010 |
15,601 |
0 |
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Cash Dividends |
560,000 |
840,000 |
1,100,000 |
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Other Distributions |
0 |
0 |
0 |
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Balance End Period |
158,414 |
402,963 |
454,287 |
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Saudi British
Bank
PO Box : 1618
Dammam 31411
Tel : (966-3) 8331553
·
Saudi American
Bank
PO Box : 3113
Dammam 31471
Tel : (966-3) 8337171
·
Al Bank Al
Saudi Al Hollandi
Dhahran Street
PO Box : 70
Dammam
Tel : (966-3) 8323212
·
Bank Al Jazira
PO Box: 1161
Dammam 31431
Tel: (966-3) 8266388
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Established in 1965,
Saudi Arabian Fertilizer Company (Safco) was the first petrochemical company in
Saudi Arabia. It is engaged in the production and marketing of urea, ammonia,
melamine and sulphuric acid, with a total production capacity of 2.85 million
(mt/y).
The company is
partly owned by the financially strong Saudi Arabian Basic Industries
Corporation (SABIC), and as such we are of the opinion that the subject would
not enter into financial transactions it could not see its way clear to fulfil.
Maximum suggested
credit figure: US$ 5,000,000
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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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%)