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MIRA INFORM
REPORT
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Report Date : |
27.06.2011 |
IDENTIFICATION DETAILS
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Name : |
EQUATE PETROCHEMICAL CO KSC (C) |
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Registered Office : |
Olympia Towers,
Ras Al Ard, Block 2, 8th Floor, Salem Al Mubarak Street, Salmiya,
P O Box 4733, Safat 13048 |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
04.12.1995 |
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Legal Form : |
Kuwaiti Shareholding Company Closed |
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Line of Business : |
Production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Kuwait |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Bottom of Form
SUMMARY
Company Name : EQUATE PETROCHEMICAL CO KSC (C)
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company Closed – KSC (C)
Registration Date : 4th December 1995
Trade Licence Number : 63392
Chamber Membership Number : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
Total Workforce : 860
Activities : Production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
EQUATE PETROCHEMICAL CO KSC (C)
company ADDRESS
Registered & Physical Address
Building : Olympia Towers, Ras Al Ard, Block
2, 8th Floor
Street : Salem Al Mubarak Street
Area : Salmiya
PO Box : 4733
Town : Safat 13048
Country : Kuwait
Telephone : (965) 24343666 / 24312568 / 23436661
Facsimile : (965) 24312560 / 24312557 / 24312558
Email : hayatm@shb.equate.com / pemarket@equate.com
Premises
Subject operates from
a large suite of offices that are rented and located in the Central Business
Area of Safat.
Branch Office (s)
Location Description
·
PO Box:
9116 Sales
Office
Safat 13048
Tel: (965) 22445655
Fax: (965) 22415121
·
Equate
Complex Production
plant
PO Box: 9729
Ahmadi 61008
Tel: (965) 23260326 / 23725630
·
Shuaiba Administrative
Office
Tel: (965) 23260238
Fax: (965) 23260302
KEY PRINCIPALS
Name Position
·
Hamad
Al Terkait President
·
Saad A
Al Shweib Vice
President
·
Yousef
Al Ateeqi Chairman
·
Raja
Zeidan Vice
Chairman
·
Bader
Al Sumait Director
·
Dabbous
Al Dabbous Director
·
Jehad
Al Hajji Director
·
Luciano
Polo Director
·
Luis
Antuna Director
·
Mauro
Gregorio Director
·
Mohammad
Hussain Director
·
Sheikh
Mubarak Al Sabah Director
·
Khalid
Bahamra General
Manager
·
Mohamed
Al Benali Technical
Manager
·
Reimer
Hasche Operations
Manager
·
Tom
Liles Production
Manager
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Travis Spoede Finance
Manager
·
M Al
Mazeedi Logistics
Manager
·
Fahd Al
Sumaid Public
Relations Manager
·
Salah
Al Kharji Chief
Financial Officer
LEGAL FORM & OWNERS
Date of Establishment : 4th
December 1995 (Production began in November 1997)
Legal Form :
Kuwaiti Shareholding
Company Closed – KSC (C)
Trade Licence No. : 63392
Industrial
Licence No. : 95-449-MM
Chamber Member No. : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
Name of Shareholder
(s) Percentage
·
Petrochemical
Industries Company KSC (PIC) * 42.5%
Shakir Al Kazimi Building
Khalid Ibn Waleed Street
PO Box: 1084
Safat 13011
Kuwait
Tel: (965) 22448280 / 22422141
Fax: (965) 22405791 / 22445913 / 23261544
·
The Dow
Chemical Company 42.5%
United States of America
·
Bubiyan
Petrochemicals Company 9.0%
·
Qurain
Petrochemical Industries Company 6.0%
AFFILIATED COMPANIES
Subject is partly owned by Petrochemical Industries Company KSC (PIC) which
in turn is wholly owned by Kuwait Petroleum Corporation (KPC), which has
overall responsibility for Kuwait’s local and foreign oil industry investments.
The following concerns are wholly or partly owned by KPC:
Name Percentage
Held
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Kuwait
Oil Co (KOC) 100%
PO Box: 9758
Ahmadi 61008
Tel:
(965) 3989111 / 3984111
Fax: (965) 3982661
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Kuwait
National Petroleum Co (KNPC) 100%
PO Box: 70
Safat 13001
Tel: (965) 2420121 / 2449401
Fax: (965) 2442954
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Kuwait
Oil Tanker Co (KOTC) 100%
PO Box: 810
Safat 13009
Tel: (965) 2455455
Fax: (965) 2445907
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Kuwait
Foreign Petroleum Exploration Co (KUFPEC) 100%
PO Box: 5291
Safat 13053
Tel: (965) 2421677
Fax: (965) 2437985
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Kuwait
Santa Fe Braun for Engineering & Petroleum Enterprises KSC 100%
PO Box: 9282
Ahmadi 61003
Tel: (965) 3985011
Fax: (965) 3981030
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Kuwait
Aviation Fuelling Co KSC (KAFCO) 100%
PO Box: 1654
Safat 13017
Tel: (965) 4330507 / 4330483
Fax: (965) 4330475
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SFIC
Holdings (Cayman) Inc 100%
Cayman Islands
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KPC
Holdings (Aruba) AEC 100%
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Petrochemical
Industries Holdings NV 100%
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KP
North Sea Holdings Ltd 100%
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Gulf
Industrial Investment Co EC 100%
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Kuwait Drilling
Co KSC 49%
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Equate
Marketing Co 49%
Bahrain
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Gulf
Petrochemical Industries Co (GPIC) 33%
Bahrain
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Sino
Arab Chemical Fertilizer Co (SACF) 30%
China
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Arabian
Oil Company 10%
OPERATIONS
Activities: Engaged in the production of Ethylene,
Ethylene Glycol, Polyethylene and Polypropylene. Production
began at the US$ 2 billion
Shuaiba complex in November 1997.
Subject has been awarded the ISO 9002 certificate for all its operating
units and also received the ISO 14001 in 2004.
The company is going to build a new ethylene and derivatives complex in Shuaiba, named Olefins II project. Fluor Corporation has signed a MoU to provide engineering, procurement and construction management services for the utilities and infrastructure portion of the project. This scope is in addition to the programme management contract it was awarded in 2004 to perform overall management consultancy and front-end engineering services.
The billion-plus-dollar project
is located approximately 40 km, south of Kuwait City in Shuaiba. Olefins
II will include construction of an 850,000-tonnes-per-year (tpy) cracker, a
600,000 tpy ethylene glycol unit, a 450,000 tpy ethyl benzene/styrene monomer
unit and a debottleneck expansion of an additional 225,000 tpy of polyethylene
capacity at the existing complex. Olefins II will be similar in volume to the
first project and, consequently, the completed facility will double the
capacity at the existing olefins complex.
Production
Capacity : Ethylene 800,000
tonnes per annum
Ethylene
Glycol 400,000 tonnes per
annum
Propylene 600,000 tonnes per annum
Import Countries: Europe and the United States of America.
Operating Trend: Steady
Subject has a
workforce of approximately 860 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: United
States Dollar (US$)
Year Ending
31/12/08: Year Ending
31/12/09: Year Ending
31/12/10:
Total Sales US$ 1,210,000,000 US$ 1,050,000,000 US$
2,000,000,000
Net Profit US$ 683,000,000 US$ 510,000,000 US$
880,000,000
Local sources consider
subject’s financial condition to be Good.
BANKERS
·
National
Bank of Kuwait SAK
Main Branch
Ahmadi
Tel: (965) 23981188 / 23981189
Fax: (965) 23985643
·
Bank of
Kuwait & the Middle East KSC
Abdullah Al Salem Street
Darwaza Abdul Razzak
PO Box: 71
Safat 13001
Tel: (965) 22459771
Fax: (965) 22461430
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
Date of
transaction September
2004 March 2005 March 2006
Credit amount 50,000 56,000 340,000
Amount overdue 0 0 0
Payment terms 90
days 90 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Pounds
Sterling Pounds Sterling Pounds Sterlin
GENERAL COMMENTS
Equate
Petrochemical Co KSC (C) was incorporated in 1995 with production beginning in
1997. It is the largest petrochemical project in Kuwait and is 42.5% owned by
the well known Petrochemical Industries Company KSC (PIC).
The company has
produced over 1 million tons of polyethylene and ethylene glycol in 2007.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.44.94 |
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UK Pound |
1 |
Rs.71.89 |
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Euro |
1 |
Rs.64.09 |
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 |
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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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.