MIRA INFORM REPORT

Report Date :

30.08.2007

IDENTIFICATION DETAILS

Name :	CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED
Registered Office :	^5 Temasek Boulevard, #05-01^, Suntec Tower 5, Singapore – 038985
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^24/04/1980
Com. Reg. No.:	^198001367K
Legal Form :	^Pte Ltd
Line of Business :	The Manufacture and Sale of High Density Polyethylene (Hdpe)

RATING & COMMENTS

MIRA’s Rating :

Aa

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED

Line Of Business 

THE MANUFACTURE AND SALE OF HIGH DENSITY POLYETHYLENE (HDPE)

Parent Company

--

Financial Elements

FY 2006

COMPANY

Sales : S$762,614,000

Networth : S$201,729,000

Paid-Up Capital : S$286,268,000

Net result : S$5,232,000

Net Margin(%) : 0.69

Return on Equity(%) : 2.59

Leverage Ratio : 0.93

COMPANY IDENTIFICATION

^{Subject Company : CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED}

^{Former Name : PHILLIPS PETROLEUM SINGAPORE}

^{Business Address: 5 TEMASEK BOULEVARD}

^#05-01

^{SUNTEC TOWER 5}

^{Town: SINGAPORE}

^{Postcode: 038985}

^{County: -}

^{Country: Singapore}

^{Telephone: 6517 3170}

^{Fax: 6517 3270}

^{ROC Number: 198001367K}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{PHILLIPS PETROLEUM SINGAPORE CHEMICALS (PTE) LTD}

^{DATE OF CHANGE OF NAME: 08/08/2000}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 24/04/1980}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 762,614,000}

^{Networth : 201,729,000}

^{Capital: -}

^{Paid-Up Capital: 286,268,000}

^{Employees: 141}

^{Net result : 5,232,000}

^{Share value: -}

^{AUDITOR: ERNST & YOUNG}

^{BASED ON ACRA'S RECORD AS AT 27/08/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 282,857,144 SGD 286,268,144.00}

^{PAID-UP ORDINARY - SGD 286,268,144.00}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 24/04/1980}

PRINCIPAL(S)

^{ROBERT FORD BUESINGER 712596777 Managing Director}

DIRECTOR(S)

^{LEONG YUKE CHUN S0153670B Company Secretary}

^{Appointed on : 15/03/1990}

^{Street : 310 SERANGOON AVENUE 2}

^#03-170

^{Town: SINGAPORE}

^{Postcode: 550310}

^{Country: Singapore}

^{TIMOTHY GARTH TAYLOR 135397483 Director}

^{Appointed on : 24/04/1997}

^{Street : 71 HERITAGE HILL CIRCLE}

^{THE WOODLANDS}

^{TX 77381}

^Town:

^Postcode:

^{Country: United States}

^{YIP SU LYNN JACQUELINE S6812547B Alternate Director}

^{Appointed on : 16/05/2007}

^{Street : 144 HOLLAND ROAD}

^#10-146

^{HOLLAND COURT}

^{Town: SINGAPORE}

^{Postcode: 278576}

^{Country: Singapore}

^{YASUO KAMEI TF3451611 Director}

^{Appointed on : 01/07/2005}

^{Street : 29-5-506 DAIZAWA 1-CHOME}

^SETAGAYA-KU

^{Town: TOKYO}

^Postcode:

^{Country: Japan}

^{KAZUYUKI SAITO TG7288989 Alternate Director}

^{Appointed on : 01/01/2006}

^{Street : 2-7-101 ICHIGAYA-NAKANO-CHO}

^SHINJUKU-KU

^{Town: TOKYO}

^{Postcode: 162-0064}

^{Country: Japan}

^{MICHAEL COLLIGAN EMERSON 134330847 Alternate Director}

^{Appointed on : 01/07/2007}

^{Street : 50 GREENMEAD AVENUE}

^{HILLCREST PARK}

^{Town: SINGAPORE}

^{Postcode: 289442}

^{Country: Singapore}

^{ROBERT FORD BUESINGER 712596777 Director}

^{Appointed on : 10/06/2005}

^{Street : 2 LEONIE HILL ROAD}

^#24-04

^{LEONIE CONDOTEL}

^{Town: SINGAPORE}

^{Postcode: 239192}

^{Country: Singapore}

^{ROBERT FORD BUESINGER 712596777 Managing Director}

^{Appointed on : 10/06/2005}

^{Street : 2 LEONIE HILL ROAD}

^#24-04

^{LEONIE CONDOTEL}

^{Town: SINGAPORE}

^{Postcode: 239192}

^{Country: Singapore}

^{HO WAI YIT JULIAN S7127828Z Director}

^{Appointed on : 16/05/2007}

^{Street : 306A ANCHORVALE LINK}

^#12-97

^{Town: SINGAPORE}

^{Postcode: 541306}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CHUA TAIK HIM S1144879H}

^{TAN SUAN SWEE S1163924J}

^{LI CHI HUNG S2220515C}

^{LAI MUN FOOK STEVE S2506980C}

^{NG SIEW KIANG S6912851C}

^{MORIMOTO SHOJI H2473409}

^{LOH CHIN SIEW S7103352Z}

^{RYOTA HAMAMOTO TZ0126927}

^{YEOH KEAT CHUAN A7761367}

^{ALBERT ROY LYONS 701317388}

^{ALAN RAY HAMMERLI Z7841657}

^{JEROME LEO JARDING Z7115503}

^{MARK EDWARD LASHIER 710333427}

^{RYUICHI SONODA TE1534308}

^{A R HAMMERLI 08098354}

^{STEVEN WAYNE PIOTTER 132161568}

^{MARGARET INEZ CONWAY 133125081}

^{NEOH KOON GEE 5503220754}

^{TAN CHEK MING S1303916Z}

^{AW KAH PENG S1813292C}

^{AKIRA YONEMURA TF4415793}

^{OSAMU ISHITOBI TE4062237}

^{JERRY DOUGLAS DARDEN 132344044}

^{SCOTT FERGUSON HUSSEY 710867688}

^{ROBERT CHNG CHONG POO A10672630}

^{NOBUO TAKEDA TZ6034251}

^{CHARLES DOUGLAS JOHNSON Z7969428}

ACTIVITY(IES)

^{POLYETHYLENE MATERIALS And PRODUCTS Code:17250}

^{BASED ON ACRA'S RECORD AS AT 27/08/2007}

^{1) PETROLEUM, MINING AND PROSPECTING SERVICES (INCLUDING OFFSHORE EXPLORATION SERVICES); MANUFACTURE AND SALE OF HIGH DENSITY}

CHARGES

^{Date: 05/03/1997}

^{Comments : CHARGE NO : 199701361 (DISCHARGED)}

^{AMOUNT SECURED : 0.00 ALL MONIES OWING}

^{CHARGEE (S) : THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{Date: 05/03/1997}

^{Comments : CHARGE NO : 199701362 (DISCHARGED)}

^{AMOUNT SECURED : 0.00 ALL MONIES OWING}

^{CHARGEE (S) : THE DEVELOPMENT BANK OF SINGAPORE}

^{Date: 04/04/2001}

^{Comments : CHARGE NO: 200101552}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE DEVELOPMENT BANK OF SINGAPORE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{EDB INVESTMENTS PTE LTD 84,857,143 Company}

^{Street : 250 NORTH BRIDGE ROAD}

^#20-03

^{RAFFLES CITY TOWER}

^{Town: SINGAPORE}

^{Postcode: 179101}

^{Country: Singapore}

^{SUMITOMO CHEMICAL COMPANY LIMITED 56,571,429 Company}

^{Street : TOKYO SUMITOMO TWIN BUILDING}

^{27-1 SHINKAWA 2-CHOME CHU-KU TOKYO}

^{Town: TOKYO}

^{Postcode: 104-8260}

^{Country: Japan}

^{CHEVRON PHILLIPS CHEMICAL 141,428,572 Company}

^{Street : NORTH MARKET ST WILMINGTON}

^{NEW CASTLE COUNTRY DELAWARE}

^Town:

^{Postcode: 19801}

^{Country: United States}

FORMER SHAREHOLDER(S)

^{DBS BANK LTD. 8,250,000}

^{TEMASEK HOLDINGS (PRIVATE) LIMITED 41,250,000}

^{MINISTRY FOR FINANCE SINGAPORE 37,000,000}

^{PHILLIPS PETROLEUM INTERNATIONAL CO 141,428,572}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: SGD}

^{Audit Qualification:UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 23/05/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 2,314,000 3,100,000 3,100,000}

^{Tangible Fixed Assets: 178,757,000 187,794,000 198,821,000}

^{Total Fixed Assets: 181,071,000 190,894,000 201,921,000}

^{Inventories: 48,179,000 48,338,000 58,867,000}

^{Receivables: 111,872,000 151,774,000 140,377,000}

^{Cash,Banks, Securitis: 6,214,000 8,634,000 7,605,000}

^{Other current assets: 42,497,000 506,000 395,000}

^{Total Current Assets: 208,762,000 209,252,000 207,244,000}

^{TOTAL ASSETS: 389,833,000 400,146,000 409,165,000}

^{--- LIABILITIES}

^{Equity capital: 286,268,000 282,857,000 282,857,000}

^{Profit & loss Account: -84,539,000 -89,771,000 -94,490,000}

^{Surplus equity: - 3,411,000 3,411,000}

^{TOTAL EQUITY: 201,729,000 196,497,000 191,778,000}

^{Long Term Loans: 70,371,000 87,452,000 98,877,000}

^{Total L/T Liabilities: 70,371,000 87,452,000 98,877,000}

^{Trade Creditors: 6,494,000 8,958,000 13,520,000}

^{Prepay. & Def. charges: 58,010,000 53,631,000 55,856,000}

^{Due to Bank: 46,349,000 47,170,000 49,134,000}

^{Other Short term Liab.: 6,880,000 6,438,000}

^{Total short term Liab.: 117,733,000 116,197,000 118,510,000}

^{TOTAL LIABILITIES: 188,104,000 203,649,000 17,387,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 762,614,000 703,548,000 645,682,000}

^{NET RESULT BEFORE TAX: 6,018,000 3,739,000 24,721,000}

^{Tax : 786,000 - -1,300,000}

^{Net income/loss year: 5,232,000 3,739,000 26,021,000}

^{Interest Paid: 6,038,000 5,337,000 3,534,000}

^{Depreciation: 13,836,000 13,717,000 13,648,000}

^{Directors Emoluments: 795,000}

^{Wages and Salaries: 10,816,000 13,013,000 12,810,000}

^{Financial Income: 435,000 249,000 120,000}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 5408609.93 4989702.13 4579304.96}

^{Net result / Turnover(%): 0.01 0.01 0.04}

^{Fin. Charges / Turnover(%):0.01 0.01 0.01}

^{Stock / Turnover(%): 0.06 0.07 0.09}

^{Net Margin(%): 0.69 0.53 4.03}

^{Return on Equity(%): 2.59 1.90 13.57}

^{Return on Assets(%): 1.34 0.93 6.36}

^{Net Working capital: 91029000.00 93055000.00 88734000.00}

^{Cash Ratio: 0.05 0.07 0.06}

^{Quick Ratio: 1.00 1.38 1.25}

^{Current ratio: 1.77 1.80 1.75}

^{Receivables Turnover: 52.81 77.66 78.27}

^{Leverage Ratio: 0.93 1.04 1.13}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 2.66% FROM S$196,497,000 IN FY 2005 TO S$201,729,000 IN FY 2006. THIS WAS DUE TO LOWER ACCUMULATED LOSS OF S$84,539,000 (2005: S$-89,771,000); A DECLINE OF 5.83% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY ACCRUALS WHICH MADE UP 49.27% (2005: 46.16%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$58,010,000 (2005: S$53,631,000).}

^{AMOUNT DUE TO BANKS OF S$46,349,000 (2005: S$47,170,000) CONSISTED OF:}

^{-FIXED TERM LOAN - 2005: S$10,756,000 (2005: S$11,660,000)}

^{-TRADE BILLS DISCOUNTED - 2005: S$35,593,000 (2005: S$35,510,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.04 TIMES TO 0.93 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE DECLINE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.77 TIMES, DOWN FROM 1.80 TIMES AND QUICK RATIO FELL TO 1.00 TIMES FROM 1.38 TIMES IN FY 2005.}

^{NET WORKING CAPITAL FELL BY 2.18% FROM S$93,055,000 IN FY 2005 TO S$91,029,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 8.39% FROM S$703,548,000 IN FY 2005 TO S$762,614,000 AND NET PROFIT ROSE BY 39.93% TO S$5,232,000 (2005: S$3,739,000). HENCE, NET MARGIN ROSE TO 0.69% (2005: 0.53%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAX ASSET - 2006: S$2,314,000 (2005: S3,100,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{FIXED TERM AND REVOLVING CREDIT LOANS}

^{THE FIXED TERM LOAN IS REPAYABLE IN 16 SEMI-ANNUAL EQUAL INSTALMENTS COMMENCING ON 2 OCTOBER 2001. THE REVOLVING CREDIT LOAN IS TO BE REPAID IN 2010.}

^{THE LOANS BEAR INTEREST AT RATES RANGING FROM 5.04% TO 6.07% (2005: 3.10% TO 5.04%) PER ANNUM AND ARE SECURED BY A FIXED CHARGE ON THE COMPANY'S FIXED ASSETS AND A FLOATING CHARGE ON THE COMPANY'S FIXED ASSETS AND A FLOATING CHARGE ON OTHER ASSETS.}

^{TRADE BILLS DISCOUNTED:}

^{TRADE BILLS DISCOUNTED ARE UNSECURED, REPAYABLE WITHIN A YEAR AND BEAR AN AVERAGE INTEREST RATE OF 2.59% (2004: 1.48%) PER ANNUM.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 24/04/1980 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "PHILLIPS PETROLEUM SINGAPORE CHEMICALS (PRIVATE) LIMITED".}

^{SUBSEQUENTLY, ON 08/08/2000, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "CHEVRON PHILLIPS SINGAPORE CHEMICALS (PRIVATE) LIMITED".}

^{AS AT 27/08/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 282,857,144 SHARES OF A VALUE OF S$286,268,144.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) PETROLEUM, MINING AND PROSPECTING SERVICES (INCLUDING OFFSHORE EXPLORATION SERVICES); MANUFACTURE AND SALE OF HIGH DENSITY POLYETHYLENE}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE MANUFACTURE AND SALE OF HIGH DENSITY POLYETHYLENE (HDPE).}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF CHEVRON PHILLIPS CHEMICAL COMPANY LLC:}

^{* ON JULY 1, 2000, CHEVRON CORPORATION AND PHILLIPS PETROLEUM COMPANY, NOW CONOCOPHILLIPS, COMBINED ITS WORLDWIDE PETROCHEMICAL BUSINESSES, EXCLUDING CHEVRON'S ORONITE ADDITIVES BUSINESS, TO FORM CHEVRON PHILLIPS CHEMICAL COMPANY LLC. CHEVRON AND CONOCOPHILLIPS EACH OWN 50 PERCENT OF CHEVRON PHILLIPS CHEMICAL.}

^{* ONE OF THE WORLD'S TOP PRODUCERS OF OLEFINS AND POLYOLEFINS AND A LEADING SUPPLIER OF AROMATICS, ALPHA OLEFINS, STYRENICS, SPECIALTY CHEMICALS, PIPING, AND PROPRIETARY PLASTICS.}

^{* HEADQUARTERED IN THE WOODLANDS, TEXAS}

^{* HAS 31 PRODUCTION FACILITIES LOCATED IN THE UNITED STATES, PUERTO RICO, SINGAPORE, CHINA, SOUTH KOREA, SAUDI ARABIA, QATAR, MEXICO AND BELGIUM}

^{* HAS SIX RESEARCH, TECHNOLOGY AND QUALITY CONTROL CENTERS WORLDWIDE.}

^{- BARTLESVILLE RESEARCH AND TECHNOLOGY CENTER - BARTLESVILLE, OKLAHOMA}

^{- KINGWOOD TECHNOLOGY CENTER - KINGWOOD, TEXAS}

^{- MARIETTA TECHNOLOGY AND RESEARCH - MARIETTA, OHIO}

^{- ORANGE TECHNOLOGY CENTER - ORANGE, TEXAS}

^{- PLASTICS COMPOUNDING AND DEVELOPMENT CENTER - SINGAPORE}

^{- TESSENDERLO QUALITY CONTROL LAB - TESSENDERLO, BELGIUM}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURE AND SALE OF HIGH DENSITY POLYETHYLENE RESINS}

^{PRIMARY BRANDS:}

^{* MARLEX POLYETHYLENE (PREMIUM EXTRUSION AND RIGID PACKAGING RESIN)}

^{* MARFLEX POLYETHYLENE (SUPERIOR FLEXIBLE PACKAGING RESIN)}

^{MARKETS SERVED:}

^{* ADHESIVES AND SEALANTS}

^{* AGRICULTURAL}

^{* APPLIANCES}

^{* AUTOMOTIVE}

^{* BUILDING AND CONSTRUCTION}

^{* CHEMICAL MANUFACTURING}

^{* DRYCLEANING}

^{* ELECTRONICS}

^{* HEALTHCARE AND MEDICAL}

^{* HOUSEHOLD}

^{* IMAGING AND PHOTOGRAPHY}

^{* INDUSTRIAL}

^{* OIL, GAS, AND MINING}

^{* PACKAGING}

^{* PAINT AND COATINGS}

^{* PERSONAL CARE AND COSMETICS}

^{* PHARMACEUTICALS}

^{* PLASTICS AND RUBBER}

^{* TEXTILES}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* AMERICAN CHAMBER OF COMMERCE}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 30/08/2007.}

^{THE COMPANY, WHICH IS INCORPORATED IN SINGAPORE, IS JOINTLY OWNED BY CHEVRON PHILLIPS CHEMICAL INTERNATIONAL HOLDINGS LLC (50%), SUMITOMO CHEMICAL COMPANY LIMITED (20%) AND EDB INVESTMENTS PTE LTD (30%).}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 141; 2004: 165; 2003: 171; 2002: 170)}

^{* GROUP - 2006: - (2005: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{5 TEMASEK BOULEVARD}

^{#05-01 SUNTEC TOWER 5}

^{SINGAPORE 038985}

^{- RENTED PREMISE}

^{- OWNED BY SUNTEC CITY DEVELOPMENT PTE LTD}

^{- DATE OF CHANGE OF ADDRESS: 10/08/1999}

^{- OFFICE}

^{OTHER BUSINESS ADDRESS:}

^{PULAU AYER MERBAU}

^{SINGAPORE 628286}

^{TEL: 6867 2503}

^{FAX: 6867 9446}

^{- FACTORY}

^{CHEVRON'S OTHER BUSINESS ENTITY IN SINGAPORE:}

^{CHEVRON PHILLIPS CHEMICALS ASIA PTE LTD}

^{PLASTICS COMPOUNDING & DEVELOPMENT CENTRE}

^{21 TUAS AVE 3}

^S639417

^{TEL: 6861 6991}

^{FAX: 6861-6760}

^{EMAIL: rytonjp@cpchem.com}

^{- MANUFACTURE OF RYLON @ POLYPHENYLENE SULFIDE (PPS)}

^{- USE FOR HIGH-PERFORMANCE ENGINEERING POLYMER}

^{- USED IN COMPUTER COMPONENTS, AUTOMOBILE PARTS AND VARIOUS ELECTRICAL EQUIPMENT.}

^WEBSITE:

^{http://www.cpchem.com}

^EMAIL:

^{pe_asia@cpchem.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) TIMOTHY GARTH TAYLOR, AN AMERICAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{CHEVRON PHILLIPS CHEMICALS ASIA PTE. LTD.}

^{2) HO WAI YIT JULIAN, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{3) YIP SU LYNN JACQUELINE, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{4) YASUO KAMEI, A JAPANESE}

^{- BASED IN JAPAN.}

^{5) KAZUYUKI SAITO, A JAPANESE}

^{- BASED IN JAPAN.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

BIOMEDICAL MANUFACTURING CLUSTER REBOUNDED FROM ITS CONTRACTION IN MARCH. SPEARHEADING THE JUMP OF 98.5% IN APRIL’S OUTPUT OVER APRIL LAST YEAR WAS THE PHARMACEUTICALS SEGMENT. THE PRODUCTION OF ACTIVE PHARMACEUTICAL INGREDIENTS SHOT UP BY 120.5% THIS APRIL DUE TO THE VERY LOW OUTPUT LEVEL LAST APRIL. THE MEDICAL TECHNOLOGY SEGMENT CONTINUED TO EXPAND ITS OUTPUT OF MEDICAL DEVICES AND APPLIANCES BY 16.1%. THE GROWTH OF BOTH SEGMENTS PUSHED CUMULATIVE OUTPUT OF THE WHOLE CLUSTER UP BY 10.5% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

TRANSPORT ENGINEERING CLUSTER RECORDED ITS FOURTH CONSECUTIVE MONTHLY YEAR-ON-YEAR GROWTH IN 2007. Q2 GROWTH OF 24.4% WAS CONTRIBUTED BY ALL THREE SEGMENTS. THE MARINE & OFFSHORE SEGMENT GREW 32.0% AS SHIPYARDS QUICKENED THEIR PACE OF SHIPBUILDING, SHIP CONVERSION AND SHIP REPAIRING. THE AEROSPACE SEGMENT GREW 13.5% WITH MORE REPAIRS COMPLETED FOR COMMERCIAL AIRCRAFTS. THE LAND TRANSPORT SEGMENT GREW 38.0% WITH HIGHER PRODUCTION OF LAND VEHICLE EQUIPMENT TO MEET LOCAL AND OVERSEAS ORDERS. CUMULATIVELY, THE CLUSTER GREW 23.9% IN THE FIRST FOUR MONTHS OF 2007 COMPARED TO THE SAME PERIOD LAST YEAR.

THE ELECTRONICS CLUSTER’S OUTPUT IN Q2 INCREASED BY 7.4% COMPARED TO Q2 OF 2006, BOOSTED MAINLY BY THE 18.0% INCREASE IN THE PRODUCTION OF SEMICONDUCTORS. THE ELECTRONIC MODULES AND COMPONENTS SEGMENT GREW 5.5%. ON THE OTHER HAND, CONTRACTIONS WERE SEEN IN THE OUTPUT OF INFOCOMMS & CONSUMER ELECTRONICS (-10.1%), DATA STORAGE (-2.8%) AND COMPUTER PERIPHERALS (-0.2%). FOR THE FIRST FOUR MONTHS OF THIS YEAR, THE ELECTRONICS CLUSTER GREW CUMULATIVELY BY 3.9% COMPARED TO THE SAME PERIOD IN 2006.

THE CHEMICALS CLUSTER GREW 4.1% IN Q2 COMPARED TO LAST YEAR'S SECOND QUARTER. THE OUTPUT OF PETROLEUM ROSE 21.7% FROM A YEAR AGO WHEN OUTPUT WAS LOW ARISING FROM MAINTENANCE SHUTDOWNS IN SOME REFINERY PLANTS. THE PRODUCTION OF PETROCHEMICALS FELL SLIGHTLY BY 0.6%. THE OUTPUT OF SPECIALTY CHEMICALS SHRANK 9.6% ON ACCOUNT OF LESS OUTPUT OF EPOXY COMPOUNDS, MINERAL OIL ADDITIVES AND CHEMICAL CATALYSTS. THE CLUSTER RECORDED A CUMULATIVE GROWTH OF 1.8% IN THE FIRST FOUR MONTHS OF 2007 COMPARED TO THE SAME PERIOD LAST YEAR.

OUTPUT OF THE PRECISION ENGINEERING CLUSTER FELL BY 2.5% IN Q2 2007. THIS CAME FROM THE CONTRACTIONS OF 1.4% AND 3.2% FOR THE MACHINERY & SYSTEMS SEGMENT AND PRECISION MODULES & COMPONENTS SEGMENT RESPECTIVELY. CUMULATIVELY, THE FIRST FOUR MONTHS’ OUTPUT THIS YEAR WAS 0.9% LESS THAN THE OUTPUT IN THE SAME PERIOD OF 2006.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS CONDITIONS IN THE NEXT SIX MONTHS COMPARED TO THE LAST QUARTER OF 2006. OVERALL, A WEIGHTED 18% OF THE MANUFACTURERS EXPECT AN IMPROVEMENT IN BUSINESS CONDITIONS WHILE A WEIGHTED 11% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 7% OF MANUFACTURERS HAVING AN OPTIMISTIC OUTLOOK, COMPARED TO 22% IN LAST QUARTER’S SURVEY. THE MODERATION IN SENTIMENTS CAN BE ATTRIBUTED MAINLY TO A WEAKER OUTLOOK IN THE ELECTRONICS CLUSTER AND SEASONAL SLOWDOWN DUE TO FESTIVE HOLIDAYS IN THE EARLY PART OF THE YEAR.

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

BUSINESS OUTLOOK IN THE BIOMEDICAL MANUFACTURING CLUSTER REMAINS RELATIVELY STABLE FOR THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. IN BOTH THE PHARMACEUTICAL AND MEDICAL TECHNOLOGY SEGMENTS, OUTPUT FORECAST IS ANTICIPATED TO BE HIGHER IN THE SECOND QUARTER OF 2007, COMPARED TO THE FIRST QUARTER, IN PREPARATION FOR ORDERS AND DELIVERIES TO BE MADE IN THE SAME PERIOD.

THE TRANSPORT ENGINEERING CLUSTER REMAINS POSITIVE ABOUT BUSINESS PROSPECTS IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO LAST QUARTER. THE MARINE & OFFSHORE ENGINEERING SEGMENT REMAINS ROBUST, WITH THE MAJORITY OF SHIPYARDS ANTICIPATING HIGHER LEVELS OF REPAIRING AND CONVERSION ACTIVITIES IN SECOND QUARTER OF 2007, COMPARED WITH THE FIRST QUARTER OF THE YEAR. STRONGER PERFORMANCE IS ALSO ANTICIPATED IN THE AEROSPACE SEGMENT ON A QUARTER TO QUARTER BASIS, AS AIRCRAFT REPAIR AND SERVICING ACTIVITIES INCREASE IN LINE WITH MORE OVERSEAS ORDERS AND EXPORTS. OUTPUT IN THE LAND TRANSPORT SEGMENT IS ALSO EXPECTED TO RISE IN THE SECOND QUARTER OF THE YEAR, COMPARED WITH A QUARTER AGO, IN FULFILLMENT OF CONTRACTUAL ORDERS.

THE ELECTRONICS CLUSTER IS SIGNIFICANTLY MORE OPTIMISTIC COMPARED TO THE FIRST QUARTER OF THE YEAR. A NET WEIGHTED BALANCE OF 38% OF MANUFACTURERS EXPECTS BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO A NET WEIGHTED BALANCE OF -1% RECORDED IN THE FIRST QUARTER. IN PARTICULAR, MANUFACTURERS IN THE COMPUTER PERIPHERALS AND INFOCOMMS AND CONSUMER ELECTRONICS SEGMENTS ARE MORE BULLISH DUE TO NEW PRODUCT INTRODUCTIONS AND AN EXPECTED PICK UP IN MARKET DEMAND FOLLOWING THE FIRST QUARTER SEASONAL LULL. CHIP MAKERS ALSO PREDICT SUSTAINED GLOBAL DEMAND OVER THE SECOND AND THIRD QUARTERS OF THE YEAR, AS EVIDENCED BY AN EXPECTED INCREASE IN EXPORT ORDERS AND SALES. PRODUCTION IN ALL SEGMENTS OF THE CLUSTER IS EXPECTED TO RISE IN THE SECOND QUARTER, OVER THE LOW LEVELS IN THE FIRST QUARTER OF 2007. IN TERMS OF EMPLOYMENT OUTLOOK, A NET WEIGHTED 24% OF THE ELECTRONICS CLUSTER IS EXPECTED TO HIRE MORE WORKERS IN THE SECOND QUARTER OF 2007, AS PRODUCTION AND SALES INCREASE.

IN THE CHEMICALS CLUSTER, A NET WEIGHTED 10% OF MANUFACTURERS EXPECT THE BUSINESS ENVIRONMENT IN THE SECTOR TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007. FIRMS IN THE SPECIALTIES AND OTHER CHEMICALS SEGMENTS ARE MORE OPTIMISTIC AS THE TREND OF SALES LEVEL DURING THE APRIL TO SEPTEMBER PERIOD IS EXPECTED TO RISE, FOLLOWING SEASONAL WEAKNESS IN THE FIRST THREE MONTHS OF 2007. OUTPUT IN ALL SEGMENTS OF THE CLUSTER IS PROJECTED TO INCREASE IN THE SECOND QUARTER OF THE YEAR, AS COMPARED TO THE FIRST. THE ONLY EXCEPTION IS IN THE PETROLEUM REFINERY SEGMENT, WHERE SOME MAINTENANCE DOWNTIME IS PLANNED DURING THIS PERIOD.

A NET WEIGHTED BALANCE OF 24% OF THE PRECISION ENGINEERING CLUSTER EXPECT AN IMPROVEMENT IN THE OPERATING ENVIRONMENT IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, AS COMPARED TO ONLY 4% RECORDED A QUARTER AGO. ON THE PRODUCTION FRONT, A TURNAROUND FROM THE SEASONALLY WEAK FIRST QUARTER IS ALSO EXPECTED. THE MACHINERY & SYSTEMS SEGMENT FORECAST AN INCREASE IN THE OUTPUT OF INDUSTRIAL PROCESS CONTROL EQUIPMENT AND SEMICONDUCTOR ASSEMBLY AND TESTING EQUIPMENT, IN VIEW OF HIGHER ORDERS AND DELIVERIES ANTICIPATED IN THE SECOND QUARTER OF 2007. MANUFACTURERS IN THE PRECISION MODULES & COMPONENTS SEGMENT EXPECT AN INCREASE IN PRODUCTION DUE TO THE INTRODUCTION OF SOME NEW PRODUCT LINES, AND IN RESPONSE TO HIGHER ORDER LEVELS. MOREOVER, SINGAPORE'S PRECISION ENGINEERING SECTOR IS GROWING AND INCREASING ITS OUTPUT ANNUALLY AND IS EXPECTED TO GENERATE S$28 BILLION BY 2010.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

economic development board

CONTACT SINGAPORE

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.	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%)

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