MIRA INFORM REPORT

 

 

Report Date :

22.07.2011

 

IDENTIFICATION DETAILS

 

Name :

SAUDI BASIC INDUSTRIES CORPORATION (SABIC)

 

 

Formerly Known As :

SAUDI BASIC INDUSTRIES CORPORATION

 

 

Registered Office :

SABIC HQ King Khalid International Airport Expressway, Exit No. 8 Cortoba District P.O. Box :  5101 Riyadh 11422

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

06.09.1976

 

 

Com. Reg. No.:

1010010813

 

 

Legal Form :

Publicly Listed Joint Stock Company

 

 

Line of Business :

Manufacturers, distributors and exporters of petrochemicals, basic, intermediate and industrial chemicals, plastics, metals, fertilizers and polymers

 

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 :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name 

 

Saudi Basic Industries Corporation (SABIC) (Correct)

SAUDI BASIC INDUSTRIES CORPORATION (Requested)

 

 

ADDRESS

 

Building :  SABIC HQ

 

Street   :  King Khalid International Airport Expressway, Exit No. 8

 

Area     :  Cortoba District

 

P.O. Box :  5101

Town     :  Riyadh 11422

Country  :  Saudi Arabia

 

Telephone:  (966 1) 225 8000 / 401 2033 / 406 9900

Fax      :  (966 1) 225 9000 / 401 2045 / 401 3831

E-Mail   :  info@sabic.com

Website  :  www.sabic.com

 

ShortformName :  SABIC

 

Also Known As :  Saudi Basic Industries Corporation / Saudi Basic Industries Corp

 

Arabic Translation :Al Sharikat Al Saudia Lil Sanaiyat Al Issasiyah (Sabic)

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                                                     Position

 

Board of Directors

 

1. H.H. Prince Saud Ibn Abdullah Ibn                                           Chairman

Thenayan Al Saud

 

2. Eng. Mohammed IbnHamad Al Mady                                       Vice Chairman

 

3. Ahmad Ibrahim Al-Hakami                                                        Board Member

 

4. Saleh E. Al-Husseini                                                              Board Member

 

5. AbdulmuhsinIbnAbdulaziz Al-Faris                                           Board Member

 

6. Mohammed SulaimanAbanumay                                             Board Member

 

7. Abdullah Mohammed Al-Issa                                                   Board Member

 

Management 

 

1. Yousef Al-ZamelExecutive Vice-President,

Chemicals

 

2. Abdulaziz S. Al-HumaidExecutive Vice-President,

Metals

 

3. Fahad Al-SheaibiExecutive Vice-President,

Fertilizers

 

4. Jacobus (Koos) van HaasterenExecutive Vice-President,

Performance Chemicals

 

5. Khaled Al-ManaExecutive Vice-President,

Polymers

 

6. Charlie Crew Executive Vice-President,

Innovative Plastics

 

7. Mosaed Al-OhaliExecutive Vice-President,

Manufacturing

 

8. Mutlaq Al-MorishedExecutive Vice-President,

Corporate Finance

 

9. Homood Al-TuwaijriExecutive Vice-President,

Corporate Control

 

10.Dr Abdulrahman Al-UbaidExecutive Vice-President,

Technology and Innovation

 

11.AbdullahBazidExecutive Vice-President,

Strategic Planning

 

12.Abdullah S. Al-RabeeahExecutive Vice-President,

Shared Services

 

13.Yousef Abdullah Al-BenyanExecutive Vice-President,

Corporate HR

 

14.Samir Al-Abdrabbuh Vice-president, Corporate

Communications

 

15.AhmedDuwahi                        Administrative Officer

 

Total Employees : 33,000

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is 70% owned by Public Investment Fund whichis a Saudi Government owned entity and is the largest industrialmanufacturer in the Middle East. It is the largest and mostprofitable non-oil company in the Middle East and one of the world’s five largest petrochemicals manufacturers.

 

We consider it is acceptable to deal with subject for LARGE amounts.

 

Opinion on maximum credit :Nine figure transactions (Saudi Riyal)

would not be unusual for the subject. In

such cases, clearly stipulated terms are

recommended and very large or protracted

transactions may be the subject of

specially negotiated terms.

 

Trade risk assessment : Fairly low

 

 

SIGNIFICANT CHANGES

 

SABIC SIGNS ACCORD FOR NEW ELASTOMERS PROJECT

 

On 17 May 2011, (The Saudi Gazette) :Saudi Basic Industries Corporationand affiliates of ExxonMobil announced that Front-End Engineering Design (FEED) contracts were awarded and that all components are in Feed phase for the proposed new elastomers project at their Al-Jubail Petrochemical Company (Kemya) joint venture petrochemical plant.

 

Feed contracts were awarded to Jacobs Engineering Inc. and Mitsui Engineering & Shipbuilding for process units and to Fluor Transworld Services Inc. for associated support facilities.

 

"This elastomers project will be the basis for the creation of a world-class rubber value chain in Saudi Arabia and a valuable extension of our offering of products and services to our customers in key markets," said Koos van Haasteren, SABIC executive vice president, Performance Chemicals.

 

"In addition to supporting local industry, the expansion at the Kemya joint venture in Al-Jubail would provide additional new capacity of butyl rubber and EPDM (ethylene propylene diene monomer) specialty elastomers to meet the growing global demand for these products," said Neil Chapman, senior vice president, Polymers, ExxonMobil Chemical Company.

 

The project is expected to establish a domestic supply of more than 400,000 metric tons of rubber [butyl, styrene butadiene rubber (SBR), butadiene rubber and EPDM], thermoplastic specialty polymers and carbon black to serve emerging local and international markets in Asia and the Middle East. The project also includes the establishment of a vocational training centre and product application development and support centre, aligned with Saudi Arabia's National Industrial Clusters Development Program to grow and diversify the manufacturing sector in the Kingdom.

 

Third-party license agreements have been signed with Continental Carbon Company for its carbon black production technology and with The Goodyear Tire & Rubber Company for its SBR and polybutadiene rubber technology.

 

The University of Akron Research Foundation was selected to design, train and support the vocational training centre, The High Institute for Elastomer Industries, in Yanbu. The training center will utilize the university's expertise in polymer science and education to provide elastomers technology vocational training for workers to support a planned downstream elastomers conversion industry in Saudi Arabia.

 

Additionally, a separate product application development and support centre will be part of the new SABIC facilities at the Riyadh Techno Valley research complex at King Saud University.

 

Implementation of the elastomers project requires the approval of Kemya's board of directors.

 

 

SABIC TO PURCHASE ASSETS OF INSTRUMENTS AMOUNTING TO SR 3 BILLION

 

On 13 June 2011, (Saudi Press Agency) : Saudi Basic Industries Corporationannounced this morning its intention to purchase the assets of the first issuance of its instruments valued at SR 3 billion, issued in July 2006, and listed in Saudi Capital Market Tadawul.

 

In a statement to the Saudi Press Agency, SABICExecutive Vice President for Financial Affairs Eng. Mutlaq bin Hamad Al-Moraished said that the Corporation will purchase the assets of these instruments because of the end of the period of their maturity for five years.

 

 

SABIC TARGETS NEW ASIA INVESTMENTS

 

On 18 July 2011, (Arab News) : Saudi Basic Industries Corp. has earmarked some 14 new projects to be carried out between 2012 and 2015, its Vice-Chairman and Chief Executive Officer Mohamed Al-Mady said here on Sunday.

 

He said the company, which has several offices in India, was also looking for new ventures in the subcontinent.

 

Al-Mady was speaking to newsmen at the SABIC headquarters here following the formal announcement of the company's second quarter performance for 2011.

 

"India is a huge market, the (Indian) government is thinking of attracting new investments and SABICis looking at investments in India -- if there are any good investments in petrochemicals there, products from refineries," Al-Mady later said in remarks published in a Reuters report.

 

"If there are refineries attached to petrochemical plants, we will be looking at that."

 

According to Reuters, Al-Mady said a decision would be made this year on SABICaffiliate Saudi Arabian Fertilizers Co.'s (SAFCO) proposed 1 million-ton urea factory in Jubail. Production is due to begin in the second half of 2013.

 

A plan to build a facility with China's Sinopec, estimated to cost at least $1 billion and to be operating by 2015, is on track, Al-Mady said.

 

Operations at Saudi Kayan Petrochemicals will start commercial production in the second half of this year, Al-Mady added, having originally been slated for the first half.

 

In view of the global economic changes, Al-Mady said SABIChad diversified its operations in markets such as India, China and the Middle East including the Kingdom. He also stressed that the economic developments in Europe and the US did not have an impact on the operations of the company.

 

He said he did not foresee a reason for a drop in the demand for petrochemicals in the near future.

 

Commenting on the oil prices, Al-Mady said that current oil prices were conducive for the petrochemical market. He said the existing range is good for the market. The preferred crude price is around $100 a barrel, he said.

 

The demand for petrochemical products in East Asia including China is one of the factors attributed to the increased profits achieved during the second quarter of this year, Al-Mady added at the press conference.

 

SABIC's net profit rose 61 per cent in the second quarter to a record SR8.1 billion from a year earlier, on the back of SR49 billion in quarterly revenue.

 

"What keeps me awake at night is keeping the successes we have," Al-Mady said in the Reuters report. "This is about the SR8.1 billion How long can we sustain this? It is challenging."

 

Asked whether SABICwas interested in any assets being divest as a result of the split-up of ConocoPhillips and the divestment of its refining arm, announced three days ago, "We always look at everything, and match it with company strategy," he said. "We always evaluate these opportunities; we are always on the lookout for very important acquisitions and for organic growth."

 

He said the sales in the second quarter reached SR49 billion, compared to SR39 billion during the corresponding period last year.

 

Commenting on the oil prices, Al-Mady said that current oil prices were conducive for the petrochemical market. The existing range is good for the market, he said, adding that the preferred crude price is around $100 a barrel

 

SABICVice President Finance Fawaz Al-Fawaz and Executive Vice President Mutlaq Al-Morished were also present at Sunday's press conference.

 

Answering a question, Al-Mady said the company is not under pressure to tap the debt market as it is financially stable and sound. He said SABIC is in a good position to grow its own business while making acquisitions when necessary.

 

 

SAUDI SABIC INKS FOUR AGREEMENT WITH KAUST UNIVERSITY

 

On 27 February 2011, (Dow Jones): Saudi Basic Industries Corp., the Middle East's largest listed company, said Sunday it signed four agreements with King Abdullah University of Science and Technology, or KAUST, for the development and localization of technology in the kingdom.

 

The first agreement is for Sabic Research and Innovation Center at KAUST, at a cost of $150 million, as the first stage, it said in an emailed statement.

 

Sabicwill provide $5 million finance for a polymer catalysis research chair for five years, according to the second deal.

 

The third and fourth agreements are for supporting postdoctoral fellowships and organizing joint research work between Sabicand KAUST.

 

 

SABIC IN MAJOR DEAL FOR NEW INDUSTRIAL CITIES

 

On 14 March 2011, (Arab News): Saudi Basic Industries Corp. (SABIC)and the Saudi Industrial Property Authority (Modon) signed a three-way deal on Sunday with Boston Consulting Group(BCG) to conduct a study to develop six cities in the Kingdom.

 

SABICVice Chairman and CEO Mohamed Al-Mady, ModonDirector-General Tawfig Al-Rabiah, and Boston Consulting GroupManaging Director Thomas Bradtke signed the agreement at the SABICheadquarters in Riyadh.

 

The cities earmarked for the industrialization program are Al-Jouf, Tabuk, Hail, Jazan, Najran and Arar.

 

"The study will provide for around 300 industrial ventures involving value-added and exportable downstream industries that can provide substantial job opportunities for nationals," Al-Rabiah told journalists after the signing ceremony.

 

The first phase of the study is expected to be completed within 12 weeks, he added.

 

"It will incorporate the findings of previous studies, develop clear understanding of the market potential and examine the attributes of each of the subject cities," Al-Rabiah said.

 

He pointed out that the study would also identify the most appropriate industries (or combinations of industries), to examine the key enablers and develop value propositions for each of the cities for investment attraction.

 

Prospective investors in these cities will receive loans on attractive terms, Al-Rabiah added.

 

Modonis a government agency, created by the council of ministers, to set up, develop and operate industrial cities and technology zones in partnership with the private sector.

 

SABICis supporting this study to contribute to the development of Saudi Arabia's industrial sector, Al-Mady said.

 

The two industrial cities of Jubail and Yanbu have seen phenomenal growth over the years and stand as role models for Saudi Arabia's industrial success, he pointed out.

 

The aim now is to focus on developing the less-developed cities and create a lot of job opportunities, he pointed out.

 

Al-Mady said BCG, a global management consulting firm and the world's leading adviser on business strategy, would carry out the study.

 

"With Modon's cooperation, the study will identify highest value opportunities, potentials of the cities and resource personnel in the earmarked areas," he said, adding that the initiative would offer career prospects for local youths in their respective hometowns.

 

In its latest effort to provide more jobs to citizens, Al-Mady said SABICwas coordinating with the Human Resource Development Fund (HRDF) and the Royal Commission for Jubail and Yanbu to nationalize the staff at contracting and maintenance firms that are affiliated to SABIC.

 

This move will provide jobs for some 5,000 nationals, he said.

 

The findings of the study would be implemented through private sector participation, Al-Mady said.

 

 

On 18 January 2010 : Subject signs financing agreements worth RMB 26

billion (US DLRS 2.68 billion) to finance its joint-venture petrochemicalcomplex in China.

 

On 19 December 2009 : Subject signs contract with Zuhair Fayez for

Plastics Applications Development Center.

 

On 15 October 2008 : Subject establishes ‘SABIC Capital Ltd.  in the

Netherlands.

 

IbnZahr now 80% subsidiary

 

On 26 March 2006 subject signed a US$120 million agreement to buy the

10% stake held by Neste, Finland in Saudi European Petrochemical

Company (IbnZahr). The sale was completed on 3 July 2006. Sabic s

shareholding in IbnZahr increases to 80%, with the remainder divided

between Arab Petroleum Investments Corporation (Apicorp) and Ecofuel,

Italy.

 

 

SR 3 billion Sukuk

 

Saudi Basic Industries Corporation (Sabic) received the approval of

the Capital Market Authority for the sukuk issue of up to SR 3,000

million. Roadshows were launched on 4 July 2006. The first issue of

Islamic bonds is expected to be worth at least SR 1,000 million. HSBC

with local affiliate SABB is the financial adviser.

 

 

Production expansion 2006-2009

 

Sabic s current and planned investments for production expansion are

likely to be more than US$20,000 million over the period 2006-2009,

and as much as US$70,000 million in the next 15 years. The company

plans to increase its capacity by 20 million tonnes a year (t/y) to

60 million t/y by 2008, through the expansion of its current

facilities and the development of new plants.

 

 

Honeywell US$12m contract

 

On 14 March 2006 Honeywell, USA announced that it had signed a US$12

million contract with Sabic to provide advanced process control and

implementation services.

 

 

KayanJubail olefins complex

 

In February 2006 Sabic signed a memorandum of understanding (MoU)

withKayan Petrochemicals Company to partner it on its planned Jubail

olefins complex.

 

The proposed olefins complex will be one of the largest in the

kingdom, and will comprise a 1.35 million tonne a year (t/y)

ethane/butane cracker; a 250,000 t/y low density polyethylene (LDPE)

plant, two polypropylene (PP) units with total capacity of 600,000

t/y, a 700,000 t/y ethylene oxide unit, the world s largest

methylamine and choline chloride units, and capacity of 100,000 t/y

ofethanolamines and 40,000 t/y of ethoxylates.

 

Under the terms of the MoU, Sabic will review all works, studies,

agreements and update the feasibility study over the next two months.

The two parties will enter into a final agreement if they agree on

the results.

 

The main shareholder in Kayan is Project Management & Development

Company (PMD), Saudi Arabia. In 2006 PMD signed an agreement with

Oxiteno, a subsidiary of Ultrapar, Brazil for the licensing of its

proprietary ethanolamine and ethoxylate technology.

 

 

YanSab olefins project

 

Saudi Basic Industries Corporation (Sabic) building a greenfield

olyfins complex at Yanbu, which will be run by its subsidiary Yanbu

National Petrochemicals Company (YanSab). YanSab will have an

ethane/propane cracker with a capacity of 1.3 million tonnes a year

(t/y) and provide feedstock for an 800,000 t/y polyethylene unit and

a 700,000 t/y ethylene glycol facility. A 350,000 t/y polypropylene

unit is also planned. It will produce a total of 4 million t/y of

basic petrochemicals, intermediates and polymers when it comes on

stream in 2008.

 

In May 2005 Sabic awarded the estimated US$1,000 million engineering,

procurement and construction and technology supply contract to the

Italian office of Technip for the construction of a ethane/propane

cracker, with capacity to produce 1.3 million tonnes a year (t/y) of

ethylene and 400,000 t/y of propylene.

 

In July 2005 Toyo Engineering Corporation, Japan received a letter of

intent from Sabic for the contract to build the 700,000-t/y ethylene

glycol (EG) plant.

 

In July 2005 a Norwegian/Chinese joint venture of Aker Kvaerner and

Sinopec received a letter of intent for the estimated US$400 million

33 month engineering, procurement and construction (EPC) contract to

build 400,000 tonnes a year (t/y) linear low-density polyethylene

(LLDPE) and 400,000 t/y polypropylene (PP) units on the YanSab

project.

 

Aker/Sinopec will build the two plants and associated product

handling facilities. The PP plant will use Unipol PP technology

licensed by Dow Chemical Company. Sabic will use its own proprietary

technology for the LLDPE plant.

 

International EPC contractors have been given until late autumn 2005

to submit bids for the 500,000 t/y HDPE package, and the contract to

build the 250,000 t/y benzene, xylene and toluene compound plant.

Uhde, Germany carried out front-end engineering and design (FEED)

works.

 

Fluor Corporation, USA will carry out the US$650-700 million offsites

and utilities package. Foster Wheeler, USA is the project management

consultant (PMC) on the project.

 

 

YanSab financing

 

In March 2006 Sabic released preliminary information memorandum (PIM)

to banks on the financing of the Yanbu National Petrochemicals

Company (YanSab) project. Offers are due by the end of April 2006.

ABN Amro and Saudi Hollandi Bank are the financial advisers.

 

The sponsors are seeking a total of US$2,400 million in commercial

debt. Export Credit Guarantee Department (ECGD), UK will cover US$100

million and Italy s Sace $500 million. The remainder will consist of

a mixture of conventional and Islamic finance, with the final split

dependent on bank responses. International banks are being asked to

take underwriting tickets of at least US$250 million while domestic

banks must offer at least US$200 million. The tenor is 12 years. The

Public Investment Fund is providing a loan of US$1,000 million.

 

YanSab raised SR 1,968 million through an initial public offering

(IPO) in December 2005.

 

 

SR 24,000 million expansion programme

 

In June 2004 the board of Saudi Basic Industries Corporation (Sabic)

approved a SR 24,000 million expansion programme.

 

This involves the addition of 8.4 million tonnes a year (t/y) of new

petrochemical and steel capacity in Jubail and Yanbu by 2008; the

grassroots olefins complex at Yanbu; and the expansion of capacity at

existingJubail based affiliates Eastern Petrochemical Company

(Sharq), Saudi Methanol Company (Ar-Razi) and Saudi Iron & Steel

Company (Hadeed).

 

At Sharq, Sabic has given the go-ahead for a US$2,300 million

expansion covering the construction of a 1.5 million-t/y cracker, a

600,000-t/y EG plant and an 800,000-t/y PE unit. Project completion

is scheduled for 2008.

 

The Ar-Razi project involves the addition of a fifth, 1.7 million-t/y

methanol unit by 2007.

 

Sabic's expansion programme at Hadeed covers the construction of a 1

million-t/y flat products plant in 2006.

 

 

Dispute with ExxonMobil

 

Sabic and ExxonMobil have two legal disputes over Yanbu

Petrochemicals Company (Yanpet) and Al Jubail Petrochemicals Company

(Kemya), set up by Sabic and ExxonMobil in 1980. Sabic filed the case

in July 2000 in the Delaware Superior Court following an accusation

by ExxonMobil that Sabic had overcharged licensing fees for Kemya and

Yanpet after obtaining rights to the Unipol PE process technology

fromUnivation Technologies, USA.

 

On 22 March 2003 jurors at the Delaware Superior Court returned a

verdict awarding ExxonMobil US$416.8 million in damages. In December

2004 Sabic lost its appeal when the Delaware State Supreme Court

upheld the verdict of the superior court.

 

Sabic had allocated SR 300 million for this litigation up to the end

of the third quarter of 2004, an amount which was deducted from the

announced profits - difference of SR 1,263 million shall be charged

to the corporate results for the last quarter of 2004.

 

In 1998 Sabic filed an action with the New Jersey Federal Court on

its own behalf and on behalf of the Kemya joint venture, arguing that

Kemya was entitled to ownership of a patent related to the

manufacture of polyethylene. This case is still ongoing and the US

Supreme Court in October 2004 accepted to review it. The session

began 23 February 2005.

 

 

Ravensdown 5 year agreement

 

In December 2002 Sabic signed a five year agreement with Ravensdown

Fertiliser Co-operative, New Zealand to supply 200,000 tonnes a year

(t/y) of urea. The contract will begin in January 2003.

 

 

Acquisition of DSM Petrochemicals

 

On 3 April 2002 Sabic announced that it was acquiring DSM

Petrochemicals, Netherlands for Euro 2,250 million.

 

DSM Petrochemicals product lines to be transferred to Sabic include

DSM Hydrocarbons, DSM Polyethylenes, DSM Polypropylenes, all in the

Netherlands, DSM Polyolefine in Germany and DSM Hydrocarbons Americas

and DSM Polypropylenes North America, USA. The European Commission

approved the acquisition in June 2002.

 

The deal takes retroactive effect from 1 January 2002, and makes

Sabic the world's third largest producer of polyethylene and fourth

largest producer of polypropylene. Sabic formerly completed its

acquisition of DSM Petrochemicals in signing ceremonies in Geleen,

Netherlands on 1 and 2 July 2002. Financed by a Euro 2,353 million

financing facility.

 

 

PRINCIPAL BANKERS

 

NAME     : SAMBA FINANCIAL GROUP (formerly Saudi American Bank)

 

Branch   : Airport Road

P.O. Box : 833

Town     : Riyadh 11421

 

Telephone: (966 1) 477 4770

Fax      : (966 1) 478 9834 / 479 9428

 

The company also has an account with the following banks :

 

1. National Commercial Bank (Al Ahli)

   Al Batha

   PO Box 34

   Riyadh 11495

   Telephone: (966 1) 402 5084

   Fax      : (966 1) 402 0981 / 403 6500

 

2. Riyad Bank

Sitteen Street Branch

   PO Box 22622

   Riyadh 11416

   Telephone: (966 1) 401 3030

   Fax      : (966 1) 404 1255

 

 

AUDITORS

 

Ernst & Young

Al Faisaliah Office Tower, Level 6

King Fahad Road

Olaya

PO Box 2732

Riyadh 11461

Telephone: (966 1) 273 4740

Fax      : (966 1) 273 4730

 

 

FINANCIAL INFORMATION

 

Consolidated Balance Sheets as at 31 December 2010, showed:

 

                            31/12/2010     31/12/2009     31/12/2008

                                      (in thousands of SR)

 

ASSETS

 

Cash                         4,142,716      2,368,995      6,363,398

Cash Collateral                845,000        820,000        817,026

Time Deposits               45,660,671     54,008,191     44,664,188

Cash & Cash Equivalents     50,648,387     57,197,186     51,844,612

Securities & Short-term

Investments                  8,874,080      2,313,912              0

Accounts Receivables        25,176,957     17,943,086     14,639,285

Provision for Doubtful

Receivables                   (323,429)      (300,606)      (286,489)

Net Receivables             24,853,528     17,642,480     14,352,796

Other receivables            1,100,714        995,047      1,275,036

Current receivables         25,954,242     18,637,527     15,627,832

Raw Material                 7,578,824      5,797,700      6,438,819

Spare Parts                  5,349,106      5,796,358      4,563,358

Goods in Transit               133,947      2,331,844        809,739

Work in Process              1,256,396        636,902      1,486,472

Finished Goods              12,741,517      9,989,150     11,861,240

Total Inventory             27,059,790     24,551,954     25,159,628

Provision (Inventory)         (937,713)      (781,964)      (799,878)

Net Inventory               26,122,077     23,769,990     24,359,750

Due from Sister

Companies/Associates         4,036,000      2,891,288      1,751,408

Loans to employees

(under one year)               214,840        208,781        247,793

Prepaid Expenses ST            579,695        921,423        434,509

Other Current Assets           670,049        523,577      1,189,070

Total Current Assets       117,099,370    106,463,684     95,454,974

Land & Buildings            21,783,440     20,657,392     19,816,833

Furniture & Equipment        3,069,020      2,777,203      2,975,421

Machinery                  178,859,858    139,679,554    128,549,568

Accumulated Depreciation   (92,556,679)   (85,882,407)   (78,295,518)

Capital work in Progress    53,733,232     80,307,324     68,393,873

Fixed Assets               164,888,871    157,539,066    141,440,177

Investment in associates     6,391,181      6,199,149      6,329,192

Other Long term Investments  2,513,238      2,099,592      2,463,789

Total Long term Investments  8,904,419      8,298,741      8,792,981

Employee Union Loan

(more than 1 year)           1,458,031      1,481,411      1,464,056

Due From Tax Authority       1,479,246      1,055,803      1,226,345

Other Non-Current Assets     1,125,696        121,284        402,366

Goodwill                    13,372,811     14,060,957     14,972,195

License                      5,698,951      6,252,288      6,641,297

Pre Operating Expenses       3,552,508      1,588,068      1,365,598

Intangibles                 22,624,270     21,901,313     22,979,090

Total Long Term Assets     200,480,533    190,397,618    176,305,015

Total Assets               317,579,903    296,861,302    271,759,989

     

LIABILITIES & SHAREHOLDERS EQUITY

 

Short Term Debt              1,120,508        939,774      1,235,542

Short Term Islamic Financing         0              0        572,000

Current Portion of

Long Term Debt              15,633,638      5,537,199      2,481,274

Accounts Payable            12,239,381     11,581,664      8,216,509

Accrued Expenses            6,770,475      7,296,725      7,070,114

Dividends Payable              624,959        586,936        619,882

Due To Sister Companies      1,147,533        124,587         44,737

Other Current Liabilities    3,455,005      2,893,048      2,440,918

Total Current Liabilities   40,991,499     28,959,933     22,680,976

Long Term Debt              77,848,012     84,537,782     72,939,462

Capital Lease                  899,174        795,688              0

Sukuk                       16,000,000     16,000,000     15,428,000

Total Long-term Liabilities 94,747,186    101,333,470     89,330,010

Total Liabilities          135,738,685    130,293,403    112,010,986

Tax Provision                3,313,215      3,212,641      3,899,031

Deferred Tax Income          4,852,886      3,680,573      1,868,543

Provision for Employees'

Termination Benefits         6,839,620      6,236,189      6,528,865

Other Provisions               688,918        808,296        810,951

Total Provisions            15,694,639     13,937,699     13,107,390

Total Liabilities

& Provisions               151,433,324    144,231,102    125,118,376

Minority Interest           45,364,518     44,375,404     43,709,139

Paid-up Capital             30,000,000     30,000,000     30,000,000

Legal/Statutory Reserve     15,000,000     15,000,000     14,702,984

General\Voluntary Reserve   58,753,396     54,478,089     43,652,631

Retained Earnings

/ Accumulated losses        17,028,665      8,776,707     14,576,859

Total Shareholders' Equity 120,782,061    108,254,796    102,932,474

Total Liabilities

& Shareholders' Equity     317,579,903    296,861,302    271,759,989

Comm. & Contingent

Liabilities                 24,385,551     32,941,204     40,266,489

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

 

Gross Revenue              151,970,027    103,105,167    150,809,596

Cost of Goods Sold        (103,423,348)   (74,486,184)  (103,547,946)

Gross Margin                48,546,679     28,618,983     47,261,650

S.G. & A.                  (10,525,109)    (8,533,290)    (9,053,356)

Amortization                         0     (1,181,250)             0

Depreciation Expense          (128,975)      (100,917)      (118,636)

Net Operating Profit        37,892,595     18,803,526     38,089,658

Interest Expense            (3,394,268)    (3,025,509)    (3,800,927)

Interest Income                449,649        637,806      1,805,340

Income from Associates         630,234        229,501      1,124,589

Total Investment Income        630,234        229,501      1,124,589

Foreign Exchange Gain/Loss     176,194        629,927        116,351

Minority Interests         (11,725,739)    (7,301,529)   (13,905,168)

Net Profit Before

Taxes/Zakat                 24,028,665      9,973,722     23,429,843

Tax / Zakat Provision       (2,500,000)      (900,000)    (1,400,000)

Net Profit After

Taxes or Zakat              21,528,665      9,073,722     22,029,843

Net Profit After

Unusual Items               21,528,665      9,073,722     22,029,843

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 6 September 1976

 

History : Subject was incorporated pursuant to Royal Decree No M/66

dated 6 September 1976 (13/9/1396 H) and was registered asa Saudi Joint Stock Corporation under CommercialRegistration No. 10813 on 4 January 1977 (14/1/1379H) andstarted production in 1981. Former Director General IbrahimIbnSalamah resigned September 1998. Dr HashimIbn AbdullahIbnHashim Al Yamani was formerly Chairman of Sabic. He wassucceeded in 2003 by Prince Saud Bin Thunayan Al Saud.

 

C.R. No. : 1010010813 (expiry date: 10 March 2016 / 30/05/1437 H)

 

RCCI Membership No.:70000

 

Authorised Capital : SR 30,000,000,000

 

Paid up Capital : SR 30,000,000,000

 

Publicly Listed Joint Stock Company with the following shareholders :

 

                                                                                     Percentage

 

1. Public Investment Fund                                   70.00%

   Ministry of Finance Building

   6th Floor

   King Abdulaziz Road

   PO Box 6847

   Riyadh 11452

   Saudi Arabia

   Telephone: (966 1) 401 6041 / 405 0000 / 405 2006

   Fax      : (966 1) 412 3474

   Email    : pif@mof.gov.sa

   (Saudi Government owned entity)

 

2. General Organisation for Social Insurance                    5.20%

   General Organization for Social Insurance Building

   King FahedAbdulaziz Road

   PO Box 2963

   Riyadh 11461

   Saudi Arabia

   Telephone: (966 1) 477 7735

   Fax      : (966 1) 477 9935

   (Saudi Government owned entity)

 

3. Members of the public                                                24.80%

 

 

Personal Profile on Prince Saud Ibn Abdullah IbnThenayan Al Saud :

 

He has been Chairman of SABIC since 2003. He is also the Chairman of

the Royal Commission for Jubail and Yanbu. He graduated from King

Saud University in 1977 with a degree in Civil Engineering and since

then has held various government posts.

 

He also holds the following positions:

 

- Chairman of the Board of Directors, Utility of Water and

Electricity Company in Jubail and Yanbu.

 

- Deputy Chairman, Prince Salman Social Center.

 

He has held the following positions:

 

- Engineer at the Riyadh Municipality.

 

- Director General for Survey and Drawings at Riyadh Municipality.

 

- Director General for Operations and Maintenance at the Riyadh

Municipality.

 

- Undersecretary for Planning and Programs at the Ministry of

Municipal and Rural Affairs.

 

Eng. Mohammed IbnHamad Al Mady :

 

He has been Vice Chairman and Chief Executive Officer of Saudi Basic

Industries Corporation (SABIC) since July, 1998.  He joined SABIC in

1976 with a Master s Degree in Chemical Engineering from the

University of Wyoming, USA. He has held various key positions within

the company.

 

He also holds the following additional positions:

 

- Chairman and Managing Director, Saudi Arabian Fertilizer Company

(SAFCO).

 

- Chairman, SABIC Europe B.V. Supervisory Board.

 

- Chairman, SABIC Innovative Plastics Supervisory Board.

 

- Fellow, London Business School.

 

- Member, International Advisory Council, King Abdullah University

of Science and Technology.

 

- Member, International Advisory Board, King Fahd University of

Petroleum and Minerals.

 

- Member, International Advisory Board, Prince Mohammed bin Fahd

University.

 

- Member, International Business Council, World Economic Forum.

 

- Member of the Board, Boao Forum for Asia.

 

- Chairman, Gulf Petrochemicals and Chemicals Association (GPCA).

 

 

Affiliated companies of Saudi Basic Industries Corporation (SABIC) :

 

Subsidiaries

 

Subsidiaries/Associates

 

1. Arabian Petrochemical Company                                       100.00%

   Arabian Petrochemical Company Complex

Jubail Industrial Area

   PO Box 10002

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 358 7000

   Fax      : (966 3) 358 4480

   E-Mail   : petrokemya@petrokemya.sabic.com

 

2. SABIC - Europe                                                   100.00%

   PO Box 5151

   6130 PD Sittard

   Netherlands

   Telephone: (31 46) 722 2222

   Fax      : (31 46) 722 0000

 

3. SABIC - Hong Kong                                                    100.00%

   Hong Kong

 

4. SABIC - India                                                             100.00%

   5th Floor, The Capital Court Olof Palme Marg

Munirka

   New Delhi 110067

   India

   Telephone: (91 11) 671 3121 / 22 / 23 / 24

   Fax      : (91 11) 671 3125 / 26

   E-Mail   : sipl@sabicindia.com

 

5. SABIC - Korea           South Korea                              100.00%

   20th Floor, Donghoon Tower 702-19,

Yeoksam-dong Gangnam-gu,

   Seoul 135-513

   Korea

   Telephone: (82 2) 2052 7790

   Fax      : (82 2) 2052 7794

   E-Mail   : skl@sabic.co.kr

 

6. SABIC Luxembourg S.a.r.l.(SLUX)                               100.00%

   Luxembourg

 

7. SABIC Acetylene B.V.                                                            100.00%

Geleen

   The Netherlands

 

8. SABIC Americas, Inc.

   2500 City West Boulevard, Suite 650, Houston,

   TX 77042, USA

   Telephone: (1 17) 135 324 999

   Fax      : (1 17) 135 324 994

   E-mail   : info@americas.sabic.com

 

9. SABIC Asia Pacific - Singapore                                      100.00%

   One Temasek Avenue, #06-01 Millenia Tower

   Singapore 039192

   Telephone: (65) 6557 2555

   Fax      : (65) 6531 8101

   E-Mail   : sappl@sabic.com.sg

 

10. SABIC Asia Pacific - Taiwan                             100.00%

   Room B, 7th Floor , No. 8, Section 3,

Minsheng East Road, Taipei 10480

   Taiwan

   Telephone: (886 2) 2516 8198

   Fax      : (886 2) 2516 8178

   E-Mail   : sappl-tbo@sabic.com.tw

 

11. SABIC Capital B.V.                                                  100.00%

World Trade Center, Tower H, 27th floor,

Zuidplein 216, 1077 XV Amsterdam,

   The Netherlands

   Telephone: (31) 467 222 128

   Fax      : (31) 102 644 829

 

12.SABIC Industrial Investments Company                       100.00%

   Saudi Arabia

 

13.SABIC Innovative Plastics                                                      100.00%

   Saudi Arabia

 

14.SABIC Innovative Plastics                                          100.00%

Wixom

   Michigan

United States

 

15.SABIC Innovative Plastics                                          100.00%

1 Plastics Drive, Burkville Alabama, 36752

United States

   Telephone: (1 133) 483 25000

 

16.SABIC Innovative Plastics Singapore Pte. Ltd            100.00%

23 Benoi Road

Singapore 629895

   Telephone: (65) 621 041 00

   Fax      : (65) 686 130 63

 

17.SABIC Innovative Plastics - Bergen Op Zoom   100.00%

   PO Box 117

   4600 AC Bergen op Zoom

   Netherlands

   Telephone: (31 164) 292 911

   Fax      : (31 164) 292 940

   E-Mail   : solutions.europe@sabic-ip.com

 

18.SABIC Innovative Plastics South America -                 100.00%

Indústria e Comércio de Plásticos Ltd.

RuaManoelThomaz, 545, 13067-190

   Campinas – SP,

   Brazil

   Telephone: (55 19) 3781 1000

   Fax      : (55 19) 3281 2144

 

19.SABIC Innovative Plastics EspanaScpA                    100.00%

   CR Cartagena, La Aljorra, Murcia, 30390

   Spain

   Telephone: (34) 968 129 100

 

20.SABIC Innovative Plastics - Chung-                             100.00%

   South Korea

 

21.SABIC Innovative Plastics

   1 Structured Products Drive, Long Sault, Ont,

   K0C 1P0

   Canada

   Telephone: (1 90) 553 481 99

   Fax      : (1 90) 553 492 20

 

22.SABIC Innovative Plastics - Columbus                         100.00%

Americas and Global HQ, 1 Plastics Avenue,

Pittsfield, MA 01201,

   United States

Telephone: (1 14) 134 487 110

Fax      : (1 14) 134 485 573

 

23.SABIC Innovative Plastics - Enkhuizen                        100.00%

   Netherlands

 

24.SABIC Innovative Plastics - Fosses                             100.00%

   France

 

25.SABIC Innovative Plastics - Klang                               100.00%

   Malaysia

 

26.SABIC Innovative Plastics - Korea                               100.00%

   North Korea

 

27.SABIC Innovative Plastics - Long Sault                         100.00%

   Canada

 

28.SABIC Innovative Plastics                                          100.00%

   9930 Kincey Ave. Huntersville North Carolina

   28078,

   United States

   Telephone: (1 18) 007 527 842

   Fax      : (1 18) 887 527 842

 

29.SABIC Innovative Plastics - Moka                               100.00%

   Japan

 

30.SABIC Innovative Plastics - Mount Vernon                   100.00%

   United States

 

31.SABIC Innovative Plastics - Nansha                            100.00%

   China

 

32.SABIC Innovative Plastics - Olgiate                             100.00%

   Italy

 

33.SABIC Innovative Plastics - Ottawa                             100.00%

   Canada

 

34.SABIC Innovative Plastics - Pontirolo                           100.00%

   Italy

 

35.SABIC Innovative Plastics - Ramdonksveer                  100.00%

   Netherlands

 

36.SABIC Innovative Plastics - Rayong                            100.00%

   Thailand

 

37.SABIC Innovative Plastics - San Luis                 100.00%

   Mexico

 

38.SABIC Innovative Plastics - Scotland                 100.00%

   United Kingdom

 

39.SABIC Innovative Plastics - Selkrik                                           100.00%

   United States

 

40.SABIC Innovative Plastics - Seremban               100.00%

   Malaysia

 

41.SABIC Innovative Plastics - Shanghai                100.00%

   China

 

42.SABIC Innovative Plastics - Tampico                                         100.00%

   Mexico

 

43.SABIC Innovative Plastics - Thornaby                100.00%

   United Kingdom

 

44.SABIC Innovative Plastics - Thorndale                            100.00%

   United States

 

45.SABIC Innovative Plastics Argentina SRL                      100.00%

   Descartes, 3668 ZIP B1661AYF,

Tortuguitas – Pcia. Buenos Aires

   Argentina

   Telephone: (52) 232 055 2800

   Fax      : (52) 232 055 2831

 

46.SABIC Innovative Plastics - Vadodara India         100.00%

   Vadodara

   Plastics Avenue

   PO Jawaharnagar - 391320

   Dist. Vadodara, INDIA

   Telephone: (91 0265) 306 8551 / 2

   Fax      : (91 0265) 223 2144

 

47.SABIC Innovative Plastics - Washington                         100.00%

   State Route 892

   Washington, WV 26181 map

   Parkersburg-Marietta, WV-OH Metro Area

Telephone:(1 304) 863 7779

 

48.SABIC Innovative Plastics - Wiener Neustadt   Austria 100.00%

Pottendorferstrasse 47

   Wiener Neustadt 2700

   Austria

   Telephone: (43 02622) 390-0

   Fax      : (43 02622) 390-20

 

49.SABIC Innovative Plastics - Zhongshan                                    100.00%

   China

 

50.SABIC Innovative Plastics Holding                                          100.00%

   Pittsfield, MA 01201

   United States

   Telephone: (1 413) 448 7110

   Fax      : (1 413) 448 7465

 

51.SABIC Petrochemicals - Netherlands                           100.00%

Europaboulevard 1

Sittard,  6135 LD

   Netherlands

   Telephone: (31 46) 722 2222

   Fax      : (31 46) 264 4817

 

52.SABIC Petrochemicals - United Kingdom                                100.00%

   United Kingdom

 

53.SABIC Petrochemicals Holding                                              100.00%

   67 s dupontrd

   Washington WV, 26181

   United States

   Telephone: (1 304) 863 7733

 

54.SABICPolyolefine - Gelsenkirchem                                       100.00%

PawikerStr 30

   Gelsenkirchen D-45896

   Germany

   Telephone: (49 209) 9 33 91

   Fax      : (49 209) 9 33 92 00

 

55.SABICSukuk Company [SUKUK] Jubail                                  100.00%

   Saudi Arabia

 

56.Saudi Basic Industries Capital Limited Company                      100.00%

   Netherlands

 

57.Saudi Iron and Steel Company                                                 100.00%

   Saudi Iron and Steel Building

Jubail Industrial City

   PO Box 10053

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 357 1100

   Fax      : (966 3) 358 5597

   E-Mail   : commercial@hadeed.com.sa

 

58.Saudi Specialty Chemicals Company                          100.00%

   Saudi Specialty Chemicals Building

   Street 289

Jubail Industrial City Area

   PO Box 10273

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 358 4000

   Fax      : (966 3) 358 7577

Website  : www.tayfweb.sabic.com

 

59.Saudi European Petrochemical Company                                 80.00%

   Saudi European Petrochemical Company Building

Jubail Industrial Area

   PO Box 10330

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 341 5060

   Fax      : (966 3) 341 2966

   E-Mail   : info@ibnzahr.sabic.com

 

60.Jubail United Petrochemical Company                                      75.00%

Jubail United Petrochemical Company Building

Jubail Industrial Area

   PO Box 10085

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 359 5000

   Fax      : (966 3) 358 4008

 

61.National Industrial Gases Company                              70.00%

   National Industrial Gas Complex

Jubail Industrial Area

   PO Box 10110

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 357 5738

   Fax      : (966 3) 358 8880

 

62.SABIC Polymer Industry - Adana                                       70.00%

   Turkey

 

63.SABIC Innovative Plastics Japan LLC

   Tokyo Office, Tokyo Club Building,

Kasumigaseki 3-2-6, Chiyoda-ku

   Tokyo 100-0013,

   Japan

   Telephone: (81 3) 35934700

   Fax      : (81 3) 3593 4709

 

64.Saudi Petrochemical Company                               50.00%

   SADAF Building

   Road No. 121

Jubail Industrial City

   PO Box 10025

Jubail 31961

   Telephone: (966 3) 357 3000 / 357 3007 (Finance) / 357 3533 / 357

   3012

   Fax      : (966 3) 357 3343 / 357 3142

   E-Mail   : bualiaa@sadaf.sabic.com / info@sadaf.sabic.com

 

65.AlJubail Fertilizer Company                                   50.00%

   Al Jubail Fertilizer Building

Jubail Industrial City

   PO Box 10046

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 341 6488

   Fax      : (966 3) 341 7122

   E-Mail   : albayroni@albyroni.sabic.com

 

66.AlJubail Petrochemical Company                                       50.00%

   Al Jubail Petrochemical Company Building

   Street 183

Jubail Industrial Area

   PO Box 10084

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 357 6000 / 357 6330

   Fax      : (966 3) 358 7858

   E-Mail   : kemya@kemya.sabic.com

 

67.Eastern Petrochemical Company                                       50.00%

   Eastern Petrochemical Company Building

Jubail Industrial City

   PO Box 10035

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 357 5000

   Fax      : (966 3) 358 0383

 

68.National Chemical Fertilizer Company                                      50.00%

Ibn Al Baytar Compound

Jubail Industrial Area

   PO Box 11044

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 341 9988

   Fax      : (966 3) 341 1257

   E-Mail   : report@safco.net

 

69.National Methanol Company                                        50.00%

   National Methanol Company Building

Jubail Industrial City

   PO Box 10003

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 340 5500

   Fax      : (966 3) 340 5604

 

70.SABIC Innovative Plastics Carville                        50.00%

   United States

 

71.Saudi Methanol Company                                           50.00%

   Saudi Methanol Company Plant

Jubail Industrial City

   PO Box 10065

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 357 7800

   Fax      : (966 3) 358 5552

   E-Mail   : arrazi@arrazi.sabic.com

 

72.SaudiYanbu Petrochemical Company                           50.00%

   Saudi Yanbu Petrochemical Company Complex

Yanbu Industrial Area

   PO Box 30333

Yanbu 21441

   Medina

   Saudi Arabia

   Telephone: (966 4) 396 5000

   Fax      : (966 4) 396 5387

   E-Mail   : info@yanpet.sabic.com

 

73.Sinopec-Sabic-Tianjin Petrochemical Company [SSTPC]       50.00%

   338 Nanjing Road

Nankai District

   Tianjin 300100

   China

   Telephone: (86 22) 2720 1588

   Fax      : (86 22) 2720 1555

 

74.Yanbu National Petrochemicals Company                    51.00%

Yanbu National Petrochemicals Company Building

   Industrial Area Street

Yanbu Industrial City

   PO Box 31396

Yanbu 21477

   Telephone: (966 4) 325 4444 / 321 8080 / 321 1660

   Fax      : (966 4) 325 6666 / 321 8175

 

75.Saudi Arabian Fertilizer Company                                42.99%

   Saudi Arabian Fertilizer Building

   138 Road

Jubail Industrial City

   PO Box 11044

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 341 1100 / 340 6617

   Fax      : (966 3) 341 1257 / 341 2367

Website  : www.safco.com.sa

 

76.SaudiKayan Petrochemical Company                           35.00%

   Saudi Kayan Petrochemical Company Building

   Street 263

Jubail Industrial Area

   PO Box 10302

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 359 3000

   Fax      : (966 3) 359 3111

   E-Mail   : subaienn@saudikayan.sabic.com

Website  : www.saudikayan.com

 

77.Gulf Petrochemical Industries Company                                   33.33%

   GPIC Complex, Building 51

   3rd Floor

   Street 1401

   Umm Al Baid Area

   PO Box 26730

Sitra

   Bahrain

   Telephone: (973) 1773 1777

   Fax      : (973) 1773 1047

   E-Mail   : gpic@gpic.com

Website  : www.gpic.com

 

78.Gulf Aluminium Rolling Mill Company                           30.28%

   GARMCO Building

Sitra Industrial Area

   PO Box 20725

Sitra

   Bahrain

   Telephone: (973) 1773 1000

   Fax      : (973) 1773 0542

   E-Mail   : garmco@garmco.com

Website  : www.garmco.com

 

79.Laleh Petrochemical Company                                    30.00%

Mahshahr Special Economic Zone

   Tehran

   Iran

   Telephone: (98 21) 6643 8606

 

80.Maaden Phosphate Company                                                  30.00%

Maaden Phosphate Building

Jubail Industrial Area

   PO Box 32001

   Al Khobar 31952

   Saudi Arabia

   Telephone: (966 3) 881 1970

   Fax      : (966 3) 347 5682

 

81.Power and Water Utility Company for Jubail and Yanbu            24.81%

Marafiq Company Building

   118 Street

   P.O. Box 11133

Jubail 31961

   Saudi Arabia

   Telephone: (966 3) 340 1111

   Fax      : (966 3) 340 1168

   E-Mail   : jubail@marafiq.com.sa

Website  : www.marafiq.com.sa

 

82.Aluminium Bahrain                                               20.00%

   Aluminium Bahrain Building

   King Hamad Highway

Askar Industrial Area

   PO Box 570

   Manama

   Bahrain

   Telephone: (973) 1783 0000

   Fax      : (973) 1783 0083

   E-Mail   : alba@alba.com.bh

Website  : www.albasmelter.com

 

83.National Chemical Carriers                                    20.00%

Akariyah Building No 1

   3rd Floor

Sitteen Street

Malaz Area

   PO Box 8931

   Riyadh 11492

   Saudi Arabia

   Telephone: (966 1) 477 3934

   Fax      : (966 1) 476 4328

   E-Mail   : info@ncc.sa.com

Website  : www.ncc.sa.com

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers, distributors and exporters of petrochemicals, basic, intermediate and industrial chemicals, plastics, metals, fertilizers and polymers; production of gases and materials used in medical equipment, computers, trucks and cars; aluminium smelting; operation, maintenance, management, expansion and construction of seawater cooling, desalinated and treated water and sanitary and industrial waste water systems; generation, distribution and transmission of electricity; ownership and operation of petrochemical carriers; provides engineering thermoplastic materials solutions; investment in the petrochemical industry.

 

Holding Company for numerous companies engaged in petrochemical,

fertilizer, plastics, gas and steel production.

 

Subject operates through six business units. These are : Chemicals,

Polymers, Performance Chemicals, Fertilizers, Metals and Innovative

Plastics.

 

Subject produces the following :

 

- Chemicals : Olefins, Oxygenates, Aromatics, Chemical intermediates,

  Fibre intermediates, Industrial gases and Linear alpha olefins.

 

- Plastics : PVC and polyester and Polyolefins

 

- Fertilizers : Urea, Ammonia, phosphates and sulphuric acid

 

- Metals : flat and long steel

 

NACE Code: 0891 / 2011 / 2013 / 2014 / 2059

 

Brands: Cycolac, Cycoloy, Exatec, Extern, Geloy, Hadeed, LNP, Lexan, Lubricomp, Noryl, Siltem, Starflam, Supec, Thermoclear, Thermoclick

Thermocomp, Ultem, Valox, Xenoy, Xylex

 

Exports worldwide.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned 55,000 sq. metres of office space, support and recreational

facilities in 16 storey twin tower block, which is constructed in the

shape of an archway, and the two towers merge at the 13th level to

form one block. Facilities include multi storey parking for 1,500

cars, basement parking, gymnasium, swimming pool, squash and

volleyball courts for employees. The complex also has its own sewage

treatment plant, and warehousing facilities.

 

The SR 250 million complex is located on a 29 hectare (284,500 sq.

metre) site in the Cortoba (or Kordoba) district of northeast Riyadh

off the King Khalid International Airport expressway. The architect

and consultant was Zuhair Fayez & Associates.

 

In June 1998 bids were submitted for the construction contract. On 8

October 2002 Crown Prince Abdullah opened the Sabic's new Riyadh

headquarters.

 

Research and development (R&D) centre in Jubail; comprising 500,000

sq. metre two storey facility housing administrative and laboratory

units, a clinic, cafeteria, library and prayer rooms. Built by

Almabani General Contractors Company at a cost of SR 115 million.

 

Subject and its subsidiaries has manufacturing and compounding

complexes spread across the world: 24 in the Middle East, 11 in Asia,

12 in Europe and 17 in the Americas.

 

84 sales offices across 80 countries.

 

45 storage, distribution and logistical hubs in 21 countries.

 

Until 2002 subject was located at Al Ma'ather District, Riyadh.

 

 

GENERAL INFORMATION

 

SABIC is a global company with its roots and a large part of its

business based in the Middle East. It is the largest and most

profitable non-oil company in the Middle East and one of the world s

10 largest petrochemicals manufacturers. It is a public company based

in Riyadh: the Saudi Arabian government owns 70% of its shares, and

the remaining 30% are held by private investors in Saudi Arabia and

other countries of the Gulf Cooperation Council. SABIC is one of the

founders of the Gulf Petrochemicals & Chemicals Association (GPCA).

 

SABIC has subsidiaries in four regions: the Middle East and Africa,

Asia, the Americas and Europe. SABIC is now composed of six strategic

business units (SBUs), organized by product. These are: Basic

Chemicals, Intermediates, Polymers, Specialized Products,

Fertilizers, and Metals. Each of these is headed by a Vice President.

These six business units make four different kinds of products:

 

- Chemicals - Basic Chemicals, Intermediates and Specialty Products

(three SBUs)

 

- Plastics - Polymers (one SBU)

 

- Fertilizers (one SBU)

 

- Metals (one SBU)

 

In addition, SABIC Innovative Plastics was launched in 2007 as a

global supplier of specialty plastics when SABIC acquired GE

Plastics.

 

 

BRANCH OFFICES

 

1. Jubail

PO Box 10040

Al Jubail Industrial City 31961

Telephone: (966 3) 347 7200

Fax: (966 3) 347 1552

Sub C.R. No. : 2055003702

 

2. Jeddah

PO Box 30204

   Jeddah 21477

   Telephone: (9662) 635 2802

   Fax      : (966 2) 636 2561

Sub C.R. No. : 4030204784

 

3. Riyadh (SABIC Industrial Complex forResearch and Development)

   PO Box 42503

   Riyadh 11551

   Telephone: (966 1) 499 9333 / 265 1661

   Fax      : (966 1) 265 1101 / 265 1686

Sub C.R. No. : 1010152830

 

3. Dammam

   PO Box 2629

 Dammam 31461

Telephone: (966 3) 847 2333

Fax      : (966 3) 847 2016

 

4. Qassim office

PO Box 5027

   Al-Qassim

Telephone: (9666) 322 0866

Fax      : (9666) 322 0376

 

5. Yanbu

Sub C.R. No. : 4700012745

 

SPECIAL NOTE

 

You enquired on: SAUDI BASIC INDUSTRIES CORPORATION. Please note that subject is also known by this name. Subject’s correct registered name is as per heading.

 

The postal address which you provided: P.O. Box No. 59090, Riyadh 11525 is incorrect. Please note that subject's correct postal address is as per heading.

 

Interviewed :Ahmed Duwahi(Administrative Officer)

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.43

UK Pound

1

Rs.71.89

Euro

1

Rs.63.41

 

 

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

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

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NB

                                       New Business

 

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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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.