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Report Date : |
20.07.2012 |
IDENTIFICATION DETAILS
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Name : |
SAUDI BASIC INDUSTRIES CORPORATION (SABIC) |
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Registered Office : |
Sabic Complex, Exit 8, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
06.09.1976 |
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Com. Reg. No.: |
1010010813, Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacture of basic chemicals, intermediates, polymers, fertilizers and metals |
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No. of Employees : |
16,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Saudi Arabia |
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)
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 6th September 1976
Commercial Registration Number : 1010010813, Riyadh
Issued Capital : SR 30,000,000,000
Paid up Capital : SR 30,000,000,000
Total Workforce : 16,000
Activities : Manufacture of basic chemicals, intermediates, polymers, fertilizers and
metals
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
SAUDI BASIC INDUSTRIES CORPORATION (SABIC)
Location : Sabic
Complex, Exit 8, North Ring Road
Street : Sitteen
Street
Area : Al Maather
District
PO Box : 5101 &
59090 & 42503
Town : Riyadh 11422
Country : Saudi Arabia
Telephone : (966-1) 4012033
/ 4069900 / 2258000
Facsimile : (966-1)
4012045 / 4013831 / 2259000
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Riyadh.
Branch Office (s)
Location Description
· PO Box: 10040 Factory
premises
Jubail Industrial
City
Al Jubail 31961
Tel: (966-3)
3477200 / 3595155
Fax: (966-3)
3411552 / 3595394
· PO Box: 30382 Factory
premises
Yanbu
Tel: (966-4)
3211660
Fax: (966-4)
3211754
· PO Box: 2629 Factory
premises
Dammam 31461
Tel: (966-3)
8575000
Fax: (966-3)
8578075
· PO Box: 5027 Office
premises
Al Qassim
Tel: (966-6)
3220866
Fax: (966-6)
3220376
· PO Box: 30204 Office
premises
Jeddah 21477
Tel: (966-2)
6352802
Fax: (966-2)
6362561
Name Position
· HH Prince Saud Bin
Thunayan Al Saud Chairman
· Mohamed H Al Mady Vice
Chairman & Chief Executive Officer
· Abdulmuhsin Ibn
Abdulaziz Al Faris Director
· Ahmed Ibrahim Al
Hakami Director
· Mohamed S
Abanumay Director
· Abdullah M Al Issa Director
· Saleh E Al
Husseini Director
· Abdullah
Nojaidi Manager
– Petrochemicals
· Abdulrahman
Al Ubaid Manager
– Polyolefins
· Fahad Al
Sheaibi Manager
– PVC / Polyester
· Khaled
Al Mana Manager
– Intermediate Chemicals
· Mohammad
Al Jaber Manager
– Metals
· Nasser
Al Sayyari Manager
– Fertilisers
· Yousef
Al Zamel Manager
– Basic Chemicals
· Ibrahim
Al Shuweir Manager
– Research & Technology
· Homood
Al Tuwaijri Manager
– Finance
·
Mohammad Al Bat'hi Manager
– Human Resources
Date of
Establishment : 13/9/1396 Hijri
(corresponding to 6th September 1976)
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1010010813, Riyadh
Issued Capital : SR 30,000,000,000
Paid up Capital : SR 30,000,000,000
· Government of
Saudi Arabia 70%
· Local businessmen
and private investors 30%
Name Shareholding
%
Arabian Petrochemical Company and subsidiary (Petrokemya)
100.00
Saudi Iron and Steel Company (Hadeed)
100.00
SABIC Industrial Investments Company and subsidiaries (SIIC)
100.00
SABIC Luxembourg S.à.r.l. and subsidiaries
100.00
SABIC Asia Pacific Pte. Ltd. and subsidiaries
100.00
SABIC Antilles N.V. 100.00
SABIC Sukuk Company 100.00
SABIC Industrial Catalyst Company 100.00
Saudi European Petrochemical Company (Ibn Zahr)
80.00
Jubail United Petrochemical Company (United)
75.00
National Chemical Fertilizer Company (Ibn Al-Baytar) 71.50
National Industrial Gases Company (Gas) 70.00
Yanbu National Petrochemical Company 51.95
Saudi Methanol Company (Ar-Razi) 50.00
Al-Jubail Fertilizer Company (Al-Bayroni ) 50.00
Saudi Yanbu Petrochemical Company (Yanpet)
50.00
National Methanol Company (Ibn Sina) 50.00
Saudi Petrochemical Company (Sadaf) 50.00
Eastern Petrochemical Company (Sharq) 50.00
Al-Jubail Petrochemical Company (Kemya) 50.00
Arabian Industrial Fiber Company (Ibn Rushd) 47.26
Saudi Arabian Fertilizer Company (Safco) 42.99
Saudi Kayan Petrochemical Company 35.00
Activities: Engaged in the manufacture of basic chemicals, intermediates, polymers,
fertilizers and metals.
· Basic Chemicals -
SABIC’s basic chemicals include methanol, ethylene, propylene, benzene, xylene,
MTBE (Methyl Tertiary Butyl Ether), Styrene, CIE (Crude Industrial Ethanol),
butadiene and butene-1.
· Intermediates -
Intermediates chemicals such as EG, EDC, VCM, 2-EH, Caustic Soda and DOP are
ingredients used by the petrochemical industry to manufacture other products.
Intermediates chemicals are produced for use by SABIC and for export to
industries around the world using basic chemicals as raw materials. The
intermediates sector also produces a range of industrial gases - Oxygen,
Nitrogen, Argon and Krypton-Xenon.
· Polymers - SABIC
is one of the largest exporters of plastics in the world with a production
capacity of nearly 4 million tons. They produce three different polyethylenes;
polypropylene, PVC and general purpose, high impact and expandable
polystyrenes. They produce polyester fibers and filaments, textile grade chips
and PET packaging resins and also melamine.
· Fertilizers -
SABIC's fertilizer group is dedicated to helping the worldwide agriculture
industry produce higher yields of quality crops to feed an ever-growing global
population. The range of products includes, ammonia and urea, as well as
compound, phosphate and liquid fertilizers. SABIC is now the world's largest
exporter of urea. SABIC’s nitrogen, phosphate and compound fertilizers are used
in an increasing number of applications to improve food security worldwide. In
Saudi Arabia, SABIC fertilizers provide the essential nutrients needed to
achieve impressive crop yields from farm acreage that until recently had been
arid desert.
· Metals - The
Metals Group is a major part of SABIC's diversified manufacturing portfolio in
Saudi Arabia. Today, its wholly owned Saudi Iron & Steel Co (Hadeed)
affiliate is the leading steel maker in the Gulf region. Since 1983, Hadeed has
produced long steel products for the Kingdom's construction industry. Its
output now includes flat, hot and cold rolled steel for expanding Saudi and regional
engineering and manufacturing industries. The Metals Group also manages large
offshore aluminium manufacturing shareholdings in Bahrain, as well as the sales
and marketing of ferro-alloys produced in Saudi Arabia.
Import & Export Countries: Worldwide
Brand Names: SABIC
Operating Trend: Steady
Subject has a workforce of approximately 16,000 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR’000)
Consolidated Balance Sheet 31/12/09 31/12/10
ASSETS
Current assets
Cash and cash equivalents 56,377,434
50,648,387
Accounts receivable 20,533,768
28,889,528
Inventories 23,769,990
26,122,077
Prepayments and other current assets 5,782,492
11,439,378
Total current assets 106,463,684
117,099,370
Non-current assets
Investments 8,298,741
8,904,419
Property, plant and equipment 157,539,066
164,888,871
Intangible assets 21,901,313
22,624,270
Other non-current assets 2,658,498 4,062,973
Total non-current assets 190,397,618
200,480,533
TOTAL ASSETS 296,861,302
317,579,903
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 13,382,450
13,386,914
Accrued liabilities and other payables 12,268,388 12,368,821
Short-term bank borrowings 939,774
1,120,508
Current portion of long-term debt 5,537,199
15,633,638
Zakat payable 1,720,962
1,794,833
Total current liabilities 33,848,773
44,304,714
Non-current liabilities
Long-term debt 100,537,782
93,848,012
Employees’ benefits payable 7,044,485
7,528,538
Other non-current liabilities 2,800,062
5,752,060
Total non-current liabilities 110,382,329
107,128,610
TOTAL LIABILITIES 144,231,102
151,433,324
EQUITY
Shareholders’ equity
Share capital 30,000,000
30,000,000
Statutory reserve 15,000,000
15,000,000
General reserve 54,478,089
58,753,396
Retained earnings 8,776,707
17,028,665
Total shareholders’ equity 108,254,796
120,782,061
Minority interests 44,375,404
45,364,518
Total equity 152,630,200
166,146,579
TOTAL LIABILITIES AND EQUITY 296,861,302
317,579,903
Consolidated Statement of Income
Sales 103,061,800
151,970,027
Cost of sales (74,441,849)
(103,423,348)
GROSS PROFIT 28,619,951
48,546,679
Selling, general and administrative expenses (8,634,207) (10,654,084)
Impairment of goodwill (1,181,250)
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INCOME FROM MAIN OPERATIONS 18,804,494 37,892,595
Investment and other income 1,496,265
1,256,077
Financing charges (3,025,508)
(3,394,268)
INCOME BEFORE MINORITY INTERESTS AND ZAKAT 17,275,251 35,754,404
Minority interests in the net earnings of subsidiaries (7,301,529) (11,725,739)
INCOME BEFORE ZAKAT 9,973,722
24,028,665
Zakat (900,000) (2,500,000)
NET INCOME FOR THE YEAR 9,073,722
21,528,665
Local sources consider subject’s financial condition to be Good.
·
National Commercial Bank
Malaz Branch
PO Box: 42536
Riyadh 11551
Tel: (966-1)
4776450
Fax: (966-1)
4769502
·
Arab National Bank
King Faisal Street
PO Box: 56921
Riyadh 11564
Tel: (966-1)
4029000
Fax: (966-1) 4027747
No complaints regarding subject’s payments have been reported.
Credit amount 250,000 397,024 400,000
Amount overdue 0 0 0
Payment terms 60
days 60 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Canadian
Dollars Canadian Dollars Euros
Established in 1976, SABIC is widely regarded as the largest manufacturing
company in the Middle East and is engaged in the manufacture of basic
chemicals, intermediates, polymers, fertilizers and metals.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.38 |
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|
1 |
Rs.86.75 |
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Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.