MIRA INFORM REPORT

 

 

Report Date :

08.08.2012

 

IDENTIFICATION DETAILS

 

Name :

METHANOL CHEMICAL COMPANY LTD (CHEMANOL)

 

 

Formerly Known As :

SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)

 

 

Registered Office :

Al Moujil Building, Al Dhahran Street, P O Box 3139, Dammam 31471

 

 

Country :

Saudi Arabia 

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.07.1989

 

 

Com. Reg. No.:

2055001870, Dammam

 

 

Legal Form :

Saudi Joint Stock Company

 

 

Line of Business :

Producers of Formaldehyde and derivative products

 

 

No. of Employees :

530

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

 

Status :

Good

Payment Behaviour :

Regular

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Saudi Arabia 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

SUMMARY

 

Company Name                                     : METHANOL CHEMICAL COMPANY LTD (CHEMANOL)

Previously Known As                              : SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Saudi Joint Stock Company

Registration Date                                   : 31st July 1989

Commercial Registration Number                        : 2055001870, Dammam

Chamber Membership Number                : 405

Issued Capital                                        : SR 1,206,000,000

Paid up Capital                                      : SR 1,206,000,000

Total Workforce                                     : 530

Activities                                               : Producers of Formaldehyde and derivative products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

COMPANY NAME

 

METHANOL CHEMICAL COMPANY LTD (CHEMANOL)

 

 

PREVIOUSLY KNOWN AS

 

SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Al Moujil Building

Street               : Al Dhahran Street

PO Box             : 3139

Town                 : Dammam 31471

Country             : Saudi Arabia

Telephone         : (966-3) 8342397 / 8338831 / 8337317 / 3589905

Facsimile          : (966-3) 8342283

Email                : sfccl@saudiform.com / fawaz@chemanol.com

s

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Dammam.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Tareeq 198 Secondary Industries Park                                                            Owned factory premises

Section P, Block 5, Lot No. 4 & 6

PO Box: 2101 / 7953

Jubail 31951

Tel: (966-3) 3584616 / 3581048

Fax: (966-3) 3583592

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·         Abdullah Mohamed Al Mazrouie                                                        Managing Director

·         Khalid Al Zamil                                                                                Director

·         Adeeb Al Zamil                                                                                Director

·         Bader Kanoo                                                                                   Director

 

·         Abdul Mohsen Al Nafsi                                                                     Director

·         Sami Jalal                                                                                       Director

·         Hamad Al Manae                                                                             Director

·         Khalid Bin Ibrahim Al Rabiah                                                             General Manager

·         Fawaz Al Abbad                                                                              Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 28/12/1409 Hijri (corresponding to 31st July 1989). Production began in 1991

 

History                         : Subject was established in 1989 under the name of “Saudi Formaldehyde Chemical

  Company Ltd (SFCCL)”. However in March 2007, and in order to reflect its expansion into methanol production the subject was re-registered under the new name of “Methanol

  Chemical Company Ltd (Chemanol)”

 

Legal Form                  : Saudi Joint Stock Company

 

Commercial Reg. No.  : 2055001870, Dammam

 

Chamber Member No. : 405

 

Issued Capital              : SR 1,206,000,000

 

Paid up Capital            : SR 1,206,000,000

 

Name of Shareholder (s)                                                          Percentage

 

·       Abdullah A Kanoo Co                                                                             11%

 

·       Zamil Group Holding Co                                                              11%

 

·       Mazen Khalif Ahmed Al Naeimi & Sons Co                                     8%

 

·       Mohammad Jalal & Sons Co                                                         5%

 

·       Al Mazrouie Holding Co                                                                5%

 

·       Members of the general public & private investors                          60%

 

 

AFFILIATED COMPANIES

 

·       United Gulf Steel Mill Co Ltd

PO Box: 35344

Dammam

       Tel: (966-3) 8343853

       Fax: (966-3) 8346627

 

 

OPERATIONS

 

Activities: Engaged in the production of premium grade Formaldehyde and derivative products, including Formalin, Melfores, Paraformaldehyde and Ufores.

 

Subject’s current product range comprises the following chemicals in 26 grades:

 

         -  Aqueous Formaldehyde Solutions (AF-37 / Formalin)

         -  Urea Formaldehyde Concentrate (UF-85 / Formurea)

         -  Hexa Methylene Tetramine (HMT / Hexamine)

         -  Paraformaldehyde (Paraform)

         -  Melamine & Urea Formaldehyde Resins (Spray Dried)

         -  Glazing Powder

         -  Methanolic / Butanolic Solutions of Formaldehyde

         -  Sulphonated Naphthalene & Melamine based Superplasticizers (SNF/SMF)

 

Production Capacity:  200,000 tonnes per annum

 

Import Countries : Germany and the United States of America.

 

Export Countries: More than 80% of its production capacity is exported to more than 50 countries in the Middle East,  Indian Subcontinent, Africa, Europe, Asia, Australia and North America.

 

Operating Trend : Steady

 

Subject has a workforce of approximately 530 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

Balance Sheet                                                               31/12/11            31/12/10            31/12/09

 

Assets

Current assets

Cash                                                                             122,114,884      136,169,510      270,440,656

Margin deposits with bank                                              500,000 -                       -

Trade receivables                                                           266,928,485      219,157,155      156,633,148

Inventories                                                                     117,460,295      83,242,482        57,023,125

Total current assets                                                       507,003,664      438,569,147      484,096,929

 

Non current assets

Property, plant and equipment                                         2,465,144,620    2,598,882,383    2,509,585,187

Intangible assets                                                                        14,568,750        15,750,000        -

Deferred charges                                                            4,741,092          7,696,356          2,170,350

Long term prepaid expenses                                           36,545,584        31,874,992        36,875,000

Total non-current assets                                                 2,521,000,046    2,654,203,731    2,548,630,537

Total assets                                                                  3,028,003,710    3,092,772,878    3,032,727,466

 

Liabilities and shareholders’ equity

Current liabilities

Trade payables                                                              82,185,438        159,168,513      153,369,024

Short term loans                                                                        40,000,000        41,606,587        58,000,000

Current portion of long term bank debts                            124,790,000      449,283,766      38,443,219

Current portion of long term obligations                            5,250,000          5,250,000          -

Zakat provision                                                               3,996,440          4,579,858          2,916,385

Total current liabilities                                                     256,221,878      659,888,724      252,728,628

 

Non current liabilities

Long term bank debts                                                     1,261,175,000    988,934,068      1,351,160,994

Long term obligations                                                     3,087,500          7,900,000          -

Employees’ end of service benefits                                  24,106,278        21,274,205        18,257,901

Total non-current liabilities                                              1,288,368,778    1,018,108,273    1,369,418,895

Total liabilities                                                                1,544,590,656    1,677,996,997    1,622,147,523

 

Shareholders’ equity

Share capital                                                                 1,206,000,000    1,206,000,000    1,206,000,000

Share premium                                                              72,850,071        72,850,071        72,850,071

Statutory reserve                                                                        24,543,813        17,522,617        16,918,519

Retained earnings                                                          180,019,170      118,403,193      114,811,353

Total shareholders’ equity                                                           1,483,413,054    1,414,775,881    1,410,579,943

Total liabilities and shareholders’ equity                           3,028,003,710    3,092,772,878    3,032,727,466

 

Statement of Income

 

Sales                                                                            829,737,011      589,495,283      402,302,427

Cost of sales                                                                 (637,294,084)    (470,579,263)    (304,954,337)

Gross profit                                                                   191,812,927      118,916,020      97,348,090

Selling and distribution expenses                                                (59,994,571)      (57,516,506)      (45,338,746)

General and administrative expenses                               (18,041,480)      (19,170,756)      (19,894,521)

Amortisation of deferred charges                                     (2,955,265)        (2,184,240)        (1,413,216)

Operating income                                                           110,821,611      40,044,518        30,701,607

Other income                                                                 2,332,704          1,052,119          1,699,631

Financial charges                                                           (39,942,354)      (29,007,407)      (8,047,592)

Income before Zakat                                                       73,211,961        12,089,230        24,353,646

Zakat                                                                            (3,000,000)        (6,048,248)        (2,298,657)

Net income                                                                    70,211,961        6,040,982          22,054,989

 

Local sources consider subject’s financial condition to be Good.

 

BANKERS

 

·       National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

·       Arab National Bank (ANB)

King Street

PO Box: 18

Dammam 31411

Tel: (966-3) 8323440

Fax: (966-3) 8337829

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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

Indian Rupees

US Dollar

1

Rs.55.50

UK Pound

1

Rs.86.40

Euro

1

Rs.68.69

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

----

NB

New Business

----

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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