%2009-Jan-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
09.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SAUDI BASIC
INDUSTRIES CORPORATION (SABIC) |
|
|
|
|
Registered Office : |
Sabic Complex,
Sitteen Street, Al Maather District, P O Box 5101 & 59090, Riyadh 11422 |
|
|
|
|
Country : |
Saudi Arabia |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
6th September 1976 |
|
|
|
|
Com. Reg. No.: |
1010010813 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture of
basic chemicals, intermediates, polymers, fertilizers and metals. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 10,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name : SAUDI BASIC INDUSTRIES CORPORATION (SABIC)
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 6th September 1976
Commercial Registration Number : 1010010813, Riyadh
Issued Capital : SR 25,000,000,000
Paid up Capital : SR 25,000,000,000
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
·
HH Prince Saud
Bin Thunayan Al Saud Chairman
·
Mohamed
H Al Mady Vice
Chairman
·
Abdulmuhsin A
Al Faris Director
·
Ahmed Al
Hakami Director
·
Mohamed S.
Abanumay Director
·
Abdullah M. Al
Issa Director
·
Saleh E. Al
Husseini 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 : 13/9/1396
Hijri (corresponding to 6th September 1976)
Legal Form :
Joint Stock Company
Commercial Reg. No. : 1010010813,
Riyadh
Issued Capital : SR 25,000,000,000
Paid up Capital : SR 25,000,000,000
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 Shareholding
%
Arabian
Petrochemical Company and subsidiary (Petrokemya) 100.00
Saudi
Iron and Steel Company (Hadeed) 100.00
SABIC
Industrial Investments Company and subsidiaries (SIIC) 100.00
SABIC
Luxembourg S.à.r.l. and subsidiaries 100.00
SABIC
Asia Pacific Pte. Ltd. and subsidiaries 100.00
SABIC
Antilles N.V. 100.00
Jubail
United Petrochemical Company (United)
75.00
National
Chemical Fertilizer Company (Ibn Al-Baytar) 71.50
National
Industrial Gases Company (Gas) 70.00
Saudi
European Petrochemical Company (Ibn Zahr) 70.00
Arabian
Industrial Fiber Company (Ibn Rushd)
53.90
Saudi
Methanol Company (Ar-Razi) 50.00
Al-Jubail
Fertilizer Company (Al-Bayroni ) 50.00
Saudi
Yanbu Petrochemical Company (Yanpet) 50.00
National
Methanol Company (Ibn Sina) 50.00
Saudi
Petrochemical Company (Sadaf) 50.00
Eastern
Petrochemical Company (Sharq) 50.00
Al-Jubail
Petrochemical Company (Kemya) 50.00
Saudi
Arabian Fertilizer Company (Safco) 42.99
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’000)
Balance Sheet 31/12/2006 31/12/2005
ASSETS
Cash
& Cash Equivalents 41,227,735 28,172,569
Receivables 18,314,256 15,760,570
Provision
for doubtful receivables (192,051) (177,004)
Inventory
– net 13,658,245 10,642,446
Other
Current Assets 966,256 1,882,264
Fixed
Assets 79,970,622 66,096,734
Total
Long Term Investments
3,531,839 5,898,098
Other non
current assets 4,017,915
3,339,765
Goodwill 3,207,772 2,946,051
Intangibles
(Others) 1,886,231
2,388,987
Total
Assets 166,588,820 136,950,480
LIABILITIES
Total
Current Liabilities 22,945,954 18,655,316
Total Long
Term Liabilities 35,915,739 25,910,082
Total
provisions
7,236,890 7,163,545
Minority
Interest 27,607,078 22,880,920
Total
Shareholders Equity 72,883,159 62,340,617
Total
Liabilities & Shareholders Equity
166,588,820 136,950,480
Income Statement
31/12/2006 31/12/2005
Gross Revenue 86,327,862 78,253,536
Cost
of Goods Sold
(51,415,477) (45,169,206)
Gross Margin 34,912,385 33,084,330
S.
G & A (3,855,529) (3,520,225)
Depreciation
Expense (170,736) (394,127)
Net Operating Profit 30,886,120 29,169,978
Interest
Expense (1,567,042) (1,397,257)
Interest
Income 2,073,026 1,141,012
Total Investment Income 196,974 526,168
Foreign
Exchange Gain/Loss 281,419
(487,220)
Other
Income 950 57,468
Minority
Interest (10,527,505)
(9,100,464)
Net Profit before Zakat
21,343,942 19,909,685
Zakat
Provision (1,050,000) (750,000)
Net Profit after Zakat
20,293,942 19,159,685
Local sources
consider subject’s financial condition to be Strong.
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.
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 and the above amount is considered to be
within subject’s financial means.
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%)