%20-%20135121%2007-Mar-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
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Name : |
SAUDI BASIC INDUSTRIES CORPORATION (SABIC) |
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Registered Office : |
SABIC |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
06.09.1976 |
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Com. Reg. No.: |
1010010813 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacturers, distributors and exporters of petrochemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
SR 6,000,000 |
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Status : |
Good |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
Company NAME
Saudi Basic Industries Corporation (SABIC)
company ADDRESS
Building : SABIC Building
Street :
Area : Cortoba District
P.O. Box : 5101
Town :
Country :
Telephone : (966 1) 225 8000 / 401 2033 / 406 9900
Fax : (966 1) 225
9000 / 401 2045 / 401 3831
E-Mail : info@sabic.com
Shortform Name : SABIC
Also Known As : Saudi Basic
Industries Corporation / Saudi Basic Industries Corp
SENIOR COMPANY PERSONNEL
Name Position
1. Prince Saud Ibn Abdullah Ibn
Chairman
Thenayan Al Saud
2.
3. Ahmad I Al-Hakami
Board
Member
4. Saleh E Al-Husseini
Board
Member
5. Abdulmuhsin Ibn Abdulaziz Al-Faris
Board
Member
6. Mohammed S. Abanumay
Board
Member
7. Abdullah Mohammed Al-Issa
Board
Member
Management
1.
2. Abdulrahman Al Ubaid
Vice President, Polyolefins
3. Fahad Al Sheaibi
Vice
President, PVC/Polyester
4. Homood Al Tuwaijri
Vice
President,
Petrochemicals
Coordination
5. Khaled Al Mana
Vice
President,
Intermediate
Chemicals
6. Mohammad Al Jaber
Vice
President, Metals
8. Mosaed Al Ohali
Vice
President, Fertilizers
9. Yousef Al Zamel
Vice
President,
Basic
Chemicals
10.Mansour Al Kharboush
Vice
President,
Shared
Services
11.Ali Al Khuraimi Vice
President,
Research
& Technology
12.Ibrahim Al Shuweir
Vice President,
Legal
& Audit
13.Mohammad Al Bat'hi
Vice President,
Corporate
HR
14.Mutlaq Al Morished
Vice
President,
Corporate
Finance
15.Mohammed Al Ghamdi
Marketing
Executive
16.Jassim Al Abid
Senior
Accountant
Total Employees : 33,000
PAYMENTS
No complaints have been heard regarding payments from local suppliers
or banks.
Subject is 70% owned by the Government and is the largest industrial
manufacturer in the
profitable non-oil company in the
five largest petrochemicals manufacturers.
We consider it is acceptable to deal with subject for LARGE amounts,
however it should be borne in mind that subject is only a branch
operation and international suppliers may prefer to see the complete
picture by obtaining information on the company.
Opinion on maximum credit : SR 6,000,000
(associations inspire confidence for higher amounts if required)
Trade risk assessment :
SIGNIFICANT CHANGES
18 January 2010 : Subject signs financing agreements worth RMB 26
billion (US $2.68 billion) to finance its joint-venture petrochemical
complex in
19 December 2009 : Subject signs contract with Zuhair Fayez for
15 October 2008 : Subject establishes SABIC Capital Ltd. in the
Ibn Zahr now 80% subsidiary
On 26 March 2006 subject signed a US$120 million agreement to buy the
10% stake held by
Company (Ibn Zahr). The sale was completed on 3 July 2006. Sabic s
shareholding in Ibn Zahr increases to 80%, with the remainder divided
between Arab Petroleum Investments Corporation (Apicorp) and Ecofuel,
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
million contract with Sabic to provide advanced process control and
implementation services.
Kayan Jubail olefins complex
In February 2006 Sabic signed a memorandum of understanding (MoU)
with Kayan 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 worlds largest
methylamine and choline chloride units, and capacity of 100,000 t/y
of ethanolamines 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),
Oxiteno, a subsidiary of
proprietary ethanolamine and ethoxylate technology.
YanSab olefins project
Saudi Basic Industries Corporation (Sabic) building a
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,
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.
works.
Fluor Corporation,
and utilities package. Foster Wheeler,
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),
million and
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
existing Jubail 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
from Univation Technologies,
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
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
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,
(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,
DSM Petrochemicals product lines to be transferred to Sabic include
DSM Hydrocarbons, DSM Polyethylenes, DSM Polypropylenes, all in the
and DSM Polypropylenes North America,
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,
financing facility.
PRINCIPAL BANKERS
NAME : PUBLIC INVESTMENT FUND
Branch :
PO Box : 6847
Town :
Telephone: (966 1) 405 8673
Fax : (966 1) 405 0000
The company also has an account with the following banks :
1. National Commercial Bank (Al Ahli)
Al Batha
Telephone: (966 1) 402 5084
Fax : (966 1) 402 0981 / 403 6500
2. Riyad Bank
Telephone: (966 1) 401 3030
Fax : (966 1) 404 1255
AUDITORS
Ernst & Young
Al Nakheel Centre
4th Floor
Jeddah 21441
Telephone: (966 2) 667 1040
Fax : (966 2) 667 2129
FINANCIAL INFORMATION
CONSOLIDATED
BALANCE SHEETS as at 31 December 2009 :
2007 2008 2009
(in
thousands of SR)
ASSETS
Current
Assets 77,181,806 71,095,224
82,693,694
Inventory 22,305,959 24,359,750
23,769,990
Investments 5,427,127 8,695,833
8,298,741
Fixed
Assets 123,113,574 141,440,177
157,539,066
Other
Assets 28,218,815 26,169,005
24,559,811
Total
Assets 256,247,281 271,759,989
296,861,302
Current
Liabilities 31,707,968 26,580,007
33,848,773
Non-Current
Liabilities 90,043,041 98,538,369 110,382,329
Other
Liabilities 43,342,241 43,709,139
44,375,404
Shareholder's
Equity 91,154,031 102,932,474
108,254,796
Total
Liabilities &
Shareholders'
Equity 256,247,281 271,759,989
296,861,302
CONSOLIDATED
PROFIT & LOSS ACCOUNT :
Sales 126,204,404 150,809,596
103,061,800
Sales
Cost 78,254,228 105,046,315
74,441,849
Total
Income 47,950,176 45,763,281
28,619,951
Other
Revenues 4,230,235 4,544,649
1,496,265
Total
Revenues 52,180,411 50,307,930
30,116,216
Admin
and Marketing
Expenses 6,903,653 9,171,992
8,634,207
Depreciation 0 0 0
Other
Expenses 16,454,486 17,706,095
11,508,287
Total
Expenses 23,358,139 26,878,087
20,142,494
Net
Income Before Zakat 28,822,272
23,429,843 9,973,722
Zakat 1,800,000 1,400,000 900,000
Net
Income 27,022,272 22,029,843
9,073,722
CONSOLIDATED
BALANCE SHEETS as at 30 June 2010 :
31/12/2009 31/03/2010
30/06/2010
Current
Assets 84,224,047 82,769,790
80,435,953
Inventory 23,806,178 24,520,664
25,586,928
Investments 6,479,917 8,269,278
8,752,743
Fixed
Assets 157,360,600 63,467,580
164,011,223
Other
Assets 24,361,244 24,158,797
23,288,703
Total
Assets 296,231,986 03,186,109
302,075,550
Current
Liabilities 34,180,014 36,509,333
33,287,021
Non-Current
Liabilities
110,382,300 108,551,183
109,824,328
Other
Liabilities 43,426,629 44,438,622
44,762,716
Shareholder's
Equity 108,243,043 113,686,971
114,201,485
Total
Liabilities&Shareholder Equit
296,231,986 303,186,109
302,075,550
CONSOLIDATED
PROFIT & LOSS ACCOUNT :
2009/12/31 2010/03/31 2010/06/30
Sales
31,939,439 34,126,205 38,861,705
Sales
Cost 21,903,854 21,909,216 27,016,810
Total
Income 10,035,585 12,216,989 11,844,895
Other
Revenues 246,273 117,761 316,821
Total
Revenues 10,281,858 12,334,750 12,161,716
Admin
and Marketing Expenses
2,255,443
2,504,678 2,706,709
Depreciation
0 0 0
Other
Expenses 3,117,963
3,897,897 3,839,092
Total
Expenses 5,373,406 6,402,575 6,545,801
Net
Income Before Zakat 4,908,452
5,932,175 5,615,915
Zakat
325,000 500,000
600,000
Net
Income 4,583,452 5,432,175
5,015,915
Balance
First Period 0 0 0
Reserves 0 0 0
Cash
Dividends 0 0 0
Other
Distributions 0 0 0
Balance
End Period 0 0 0
Last
Update Date 2010/01/20 2010/04/18 2010/07/19
Loans
SR 3,000 million sukuk
In July 2006 Sabic issued a SR 3,000 million sukuk, which matures
after 20 years, but Sabic committed to repurchase the assets in five
years. The co-managers were Banque Saudi Fransi, Gulf International
Bank, National Commercial Bank, Samba Financial Group and Saudi
Hollandi Bank. The riyal denominated instrument was cleared by the
Capital Market Authority (CMA) in early July 2006 and allocated 49%
to pension, mutual and other funds, 36% to banks and 15% to
corporates and institutions. HSBC and SABB were the arrangers.
In June 2006 it was reported that Sabic had set up a special purpose
vehicle, called Sabic Sukuk Company, for its sukuk issue - bonds
worth SR 1,000 million.
US$1,000 million murabaha
In May 2006 Sabic signed a US$1,000 million murabaha facility with
Deutsche Bank to finance its expansion projects and future
investments.
Financing package for DSM acquisition
The Euro 2,353 million financing package for the DSM acquisition made
by Saudi Basic Industries Corporation (Sabic) was signed late June
2002.
In August 2002 it was reported that four banks had participated at
the sub-underwriting level; the banks were Riyad Bank, ING Bank,
Saudi Hollandi Bank and National Bank of
There are two limited recourse tranches, entailing upfront
disbursement, and a third tranche with disbursement deferred for 55
months with full recourse to Sabic. The first, worth Euro 408
million, will be used by Sabic as the base equity for the acquisition
vehicle. It has been priced at 55-65 basis points (bp) over Libor.
The second, for Euro 820 million, is made up of four different layers
with varying levels of recourse to Sabic, and has been priced in a
range of 110-175 bp.
The Euro 1,125 million deferred tranche is covered by a bank
guarantee supporting Sabic's commitment to pay the remainder of the
acquisition's value in four and a half years. It is priced at 70-80
bp.
The lead arranging group, comprises JP Morgan Chase & Company, HSBC
Investment Bank with its local affiliate The Saudi British Bank,
Credit Agricole Indosuez, Al Bank Al-Saudi Al-Fransi, Saudi American
Bank, Arab Bank with Arab National Bank, Arab Petroleum Investments
Corporation (Apicorp), Arab Banking Corporation and Gulf
International Bank. The sub-underwriters are Riyad Bank, Saudi
Hollandi Bank, National Bank of
the financial adviser on the transaction.
The debt package was launched to general syndication in mid-October
2002, and completed January 2003.
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 as
a Saudi Joint Stock
Corporation under Commercial
Registration No. 10813
on 4 January 1977 (14/1/1379H) and
started production in
1981. Former Director General Ibrahim
Ibn Salamah resigned
September 1998. Dr Hashim Ibn Abdullah
Ibn Hashim Al Yamani was
formerly Chairman of Sabic. He was
succeeded in 2003 by
Prince Saud Bin Thunayan Al Saud.
C.R. No. : 1010010813 (expiry date : 04/05/2011 / 30/05/1432 H)
Authorised Capital : SR 30,000,000,000
Paid up Capital : SR 30,000,000,000
Joint Stock Company with the following shareholders :
Percentage
1. Public Investment Fund 70%
Airport Road
Telephone: (966 1) 405 8673
Fax : (966 1) 405 0000
(owned by the Government of
Saudi Arabia)
2. General Organisation for Social Insurance )
)
3. Public Pension Fund )
) 30%
4. Saudi Citizens )
)
5. GCC investors )
(GCC = Gulf Cooperation Council
countries)
Personal Profile on Prince Saud Ibn Abdullah Ibn Thenayan 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
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,
He has held the following positions:
- Engineer at the
- Director General for Survey and Drawings at
- Director General for Operations and Maintenance at the
Municipality.
- Undersecretary for Planning and Programs at the Ministry of
Municipal and Rural Affairs.
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
the company.
He also holds the following additional positions:
- Chairman and Managing Director, Saudi Arabian Fertilizer Company
(SAFCO).
- Chairman, SABIC
- Chairman, SABIC Innovative Plastics Supervisory Board.
- Fellow,
- Member, International Advisory Council,
of Science and Technology.
- Member, International Advisory Board,
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
- Chairman, Gulf Petrochemicals and Chemicals Association (GPCA).
Affiliated
companies of Saudi Basic Industries Corporation (SABIC) :
Subsidiaries
1. Arabian Industrial Fibres Company (IBN RUSHD) 53.90%
2. Arabian Petrochemical Company (PETROKEMYA) 100.00%
3. Jubail United Petrochemical Company (UNITED) 75.00%
4. National Chemical Fertilizer Company (IBN AL BAYTAR) 71.00%
5. National Industrial Gases Company
(GAS) 70.00%
6. National Plastic Company (IBN HAYYAN) 96.00%
Merged with PETROKEMYA 1
January 2004
7. SABIC Industrial Investments Company (SIIC) 100.00%
8. SABIC Marketing Limited 100.00%
Telephone: (966 1) 401 2033
9. SABIC Services Limited 100.00%
Telephone: (966 1) 401 2033
Madinat Al Jubail 31961
Telephone: (966 3) 345 2634
10.Sabic Terminal Services Company (SabTank) 75.00%
(a 75% subsidiary of Sabic
Services Ltd)
11.Saudi European Petrochemical Company (IBN ZAHR) 80.00%
On 3 July 2006 Sabic completed
the purchase of the
10% shareholding of
its stake to 80%. Arab
Petroleum Investments
Corporation and
12.Saudi Iron & Steel Company (HADEED) 100.00%
13.Steel Rolling Company (SULB), subsidiary of HADEED 100.00%
14.Yanbu National Petrochemicals Company (YanSab) 55.95%
Established 7 December 2005.
Incorp. 13 February 2006.
Capital SR 5,625,000,000.
International Subsidiaries
1. SABIC Americas Inc
2. SABIC
3. SABIC Deutschland GmbH
Limbecker Platz 1
45033
4. SABIC
13 Rue Royale
75008
5. SABIC Global Ltd
Kensington Centre
6. SABIC Hong Kong Ltd
88 Queensway
7. SABIC India Pvt. Ltd
C-5 Qutab Hotel
8. SABIC Italia Spa
Via
1-20122
9. SABIC Japan Ltd
4th floor,
Yurakucho 7-1
Chiyoda-ku
10.SABIC Korea Ltd
159 Samsung-Dong
Kangnam-ku
11.SABIC
12.SABIC Marketing Iberica SA
Av. Diagonal 615
7H Planta
08028
13.SABIC
Telephone: (1 281) 207 5500
Fax : (1 281) 207 5550
14.Sabic
15.Sabic EuroPetrochemicals
The
(formed 2002 to operate the DSM
Petrochemicals operation
acquired by Sabic in 2002, see
Significant Changes above)
16.Sabic UK Ltd
January 2007 Sabic acquired the
polymers business of Huntsmann
Corporation,
US$700 million.
17.Sabic Polyolefine Gmbh
18.Sabic Hong Kong Ltd
19.Sabic Innovative Plastics
20.Sabic Innovative Plastics (
21.Sabic Innovative Plastics Pacific Pte Ltd
22.Sabic (
23.Sabic Innovative Plastics Rus OOO LNP Products
24.Sabic Polymerland Caribbean LLC
25.Sabic Innovative Plastics
26.Sabic
27.Sabic Innovative Plastics Iberica S.A
28.SABIC Capital Ltd
The
Joint Venture Companies
1. Al Jubail Fertilizer Company (Al Bayroni) 50.00%
2. Al Jubail Petrochemical Co. (KEMYA) 50.00%
3. Eastern Petrochemical Company (SHARQ) 50.00%
4. National Methanol Company (IBN SINA) 50.00%
5. Saudi Methanol Company (AR-RAZI) 50.00%
6. Saudi Petrochemical Company (SADAF) 50.00%
7. Saudi Yanbu Petrochemical Company (YANPET) 50.00%
Associates
1. Aluminium
2. Bahrain Saudi Aluminium Marketing Co (BALCO) 25.67%
3. ChemConnect
Equity stake acquired March
2000 through
Sabic
4. Gulf Aluminium Rolling Mill Company BSC,
(GARMCO)
5. Gulf Petrochemical Industries Co BSC,
6. National Chemical Carriers Company (NCCC) 20.00%
NCCC is a joint venture between
SABIC (20%) and
National Shipping Company of
7. Power and Water Utilities Company for 25.00%
Jubail and Yanbu (MARAFIQ)
(joint venture between Saudi
Aramco, Sabic, and the Royal
Commission for Jubail &
Yanbu)
8. Saudi Arabian Fertiliser Company (SAFCO) 42.99%
9. Saudi Arabian Fertilizer Marketing Company (SANAPIK)
10.Saudi Kayan Petrochemical Company 35.00%
Jubail
1.3 million t/y cracker
Established 2006. Owned by
Sabic 35%
Kayan Petrochemical Company 20%
estimated development cost
US$8,000 million
ACTIVITIES
The Company is involved in the following activities :
Manufacturers, distributors and exporters of petrochemicals.
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
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
off the
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
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
12 in Europe and 17 in the
Until 2002 subject was located at Al Ma'ather District,
GENERAL INFORMATION
SABIC is a global company with its roots and a large part of its
business based in the
profitable non-oil company in the
10 largest petrochemicals manufacturers. It is a public company based
in
the remaining 30% are held by private investors in
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
Asia, the
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.
SPECIAL NOTE
The PO Box number which you provided: 59090,
incorrect. Please note that subject's correct PO Box number and Postal
Code are as per heading.
Interviewed : Jassim Al Abid (Senior Accountant).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.99 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.80 |
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 |
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.