MIRA
INFORM REPORT
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Report Date : |
27.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SAUDI INTERNATIONAL PETROCHEMICAL CO |
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Registered Office : |
Jubail Industrial City, PO Box 12021, Jubail 31961 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
22.12.1999 |
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Com. Reg. No.: |
1010156910, Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacture of Chemicals and
Methanol. |
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$ 2,500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name : SAUDI INTERNATIONAL PETROCHEMICAL CO
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 22nd December 1999
Commercial Registration Number : 1010156910, Riyadh
Membership Number : 117
Issued Capital : SR 2,000,000,000
Paid up Capital : SR 2,000,000,000
Total Workforce : 500
Line of Business : Manufacture of chemicals and methanol.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
SAUDI INTERNATIONAL PETROCHEMICAL CO
ADDRESS
Registered & Physical Address
Location : Jubail
Industrial City
PO Box : 12021
Town : Jubail 31961
Country : Saudi Arabia
Telephone : (966-3) 3599999
Facsimile : (966-3)
3599888
Email : info@sipchem.com
Premises
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Jubail.
Branch Office (s)
Location Description
· PO Box 130 Sales
Office
Al Khobar 31952
Tel: (966-3)
8010111
Fax: (966-3)
8010222
· PO Box 7126 Sales
Office
Riyadh 11462
Tel: (966-1) 4790324
Fax: (966-1) 4724115
KEY PRINCIPALS
· Ahmed
Abdulaziz Al Ohali Chairman
·
Khalid J. Bin Kalban Director
·
Reyadh S. Ahmad Director
·
Dr. Saleh H. Al Humaidan Director
·
Dr. Abdulrahman A. Al Zamil Director
·
Abdulrahman A. Al Turki Director
·
Dr. Abdulaziz A. Al Waiz Director
·
Abdullah S. Bahamdan Director
·
Fahad S. Al Rajhi Director
·
Mohamed A. Al Ghurair Director
·
Mohamed A. Al Joaid Director
·
Mumtaz R. Khan Director
· Khalid
Bagwai Administration
Manager
· Khalid Al Dossary Finance
Manager
· Albert Biggs Technical
Manager
LEGAL FORM & OWNERS
Date of
Establishment : 30/10/1420 Hijri (Corresponding to 22nd December
1999)
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1010156910,
Riyadh
Membership No. : 117
Issued Capital : SR 2,000,000,000
Paid up Capital : SR 2,000,000,000
Name of Shareholder (s)
· Saudi Businessmen
& private investors
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
Ownership
· International
Methanol Company (IMC) 65.00%
· Gulf
Advanced Chemical Industries Company (GACIC) 53.91%
· International
Vinyl Acetate Company (IVAC) 75.00%
· International
Acetyl Company (IAC) 75.00%
· United
Industrial Gasses Company (UIGC) 75.00%
LINE OF BUSINESS
Operations : Engaged in the manufacture of chemicals and methanol.
Subject operates a methanol plant with a capacity of 1
million mtpa, and a BDO plant with 75,000 mtpa.
Import Countries : Asia and Europe.
Operating Trend : Steady
Subject has a workforce of approximately 500 employees.
FINANCIAL HIGHLIGHTS
Financial highlights provided by outside sources are given below:
Currency: Saudi Riyals (SR)
Consolidate Balance Sheet 31/12/2006 31/12/2005
ASSETS
Current assets
Cash and cash
equivalents 1,507,117,805 1,163,583,499
Inventories 59,962,099 54,900,695
Accounts
receivable, prepayments and other receivables 256,990,630 83,969,359
Total current
assets 1,824,070,534 1,302,453,553
Non-current assets
Investment
securities - 259,583,759
Property, plant
and equipment 3,199,860,514 2,486,835,025
Deferred projects
implementation costs 40,836,032 251,153,731
Intangible assets 197,439,366
113,694,291
Other assets - 14,134,340
Total non-current
assets 3,438,135,912 3,125,401,146
TOTAL ASSETS 5,262,206,446 4,427,854,699
LIABILITIES,
STOCKHOLDERS’ EQUITY AND
MINORITY INTEREST
Current
liabilities
Accounts payable
and other liabilities 476,606,355 146,608,085
Current portion of
long term debt 124,630,490
64,864,865
Total current
liabilities 601,236,845 211,471,950
Non-current
liabilities
Long term debt 1,688,004,608 1,853,575,132
End-of-service
indemnities 12,957,602 7,990,487
Total non-current
liabilities 1,700,962,210 1,861,565,619
Stockholders’
equity and minority interest
Share capital 1,500,000,000 1,500,000,000
Statutory reserve 117,550,538
68,181,209
Retained earnings 787,954,824 343,630,860
Total
stockholders’ equity 2,405,505,362 1,911,812,069
Minority interest 554,502,029 443,005,061
Total
stockholders’ equity and minority interest 2,960,007,391 2,354,817,130
TOTAL LIABILITIES,
STOCKHOLDERS’ EQUITY AND 5,262,206,446 4,427,854,699
MINORITY INTEREST
Consolidate Statement of Income 31/12/2006 31/12/2005
Sales 1,333,990,256
726,087,384
Cost of sales 512,269,889 250,036,027
Gross Profit 821,720,367 476,051,357
General and administrative expenses 48,493,802 25,090,560
Operating income 773,226,565 450,960,797
Investment income 54,055,812 36,924,642
Financial charges 81,289,510 40,484,565
Net expenses of pre-operating activities 1,105,906 2,328,217
Other (expenses) income 4,937,945 17,787,476
Income before minority
interest and zakat 739,949,016 462,860,133
Minority interest 220,808,095 130,066,002
Net income before zakat 519,140,921 332,764,131
Zakat 25,447,628 7,833,566
Net Income 493,693,293 324,960,565
Local sources consider subject’s financial condition to be Good.
BANKERS
·
National Commercial Bank
PO Box : 58
Jubail 51951
Tel : (966-3)
3612896
Fax : (966-3)
3611750
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Sipchem made remarkable financial gains during the year 2006 due to the
growth in the volume of sales, increase in products prices and continuity of
plant production. Sipchem’s sales have grown from SR 726 million in 2005 to SR
1,334 million net of transport and distribution expense, marking a rise of SR
608 million or 84% in 2006. Net profits after Zakat during the year 2006
reached SR 494 million, marking a 52% rise over 2005 profits of SR 325 million.
The company’s total assets are valued at SR 5.3 billion as compared to SR 4.4
billion in 2005. Shareholders’ equity increased from SR 1.9 billion in 2005 to
SR 2.4 billion in 2006, marking a rise of 26% over 2005. Sipchem also realized
SR 773 million in operating profits or a 72% rise over last year’s operating
profits of SR 451 million. Additionally, in 2006 Sipchem realized a 27% rise in
Earnings Per Share to SR 3.3 from 2005 earnings SR 2.6.
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$ 2,500,000
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.46.43 |
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UK Pound |
1 |
Rs.85.38 |
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Euro |
1 |
Rs.67.95 |
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. |
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%)