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Report Date : |
08.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SAUDI BASIC INDUSTRIES CORPORATION (SABIC) |
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Registered Office : |
Sabic Complex, Exit
8, North Ring Road, Sitteen Street, Al Maather District, P O Box 5101 &
59090 & 42503,Riyadh 11422 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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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 : |
16000 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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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 |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Saudi
Arabia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
Saudi Arabia - ECONOMIC OVERVIEW
Saudi Arabia
has an oil-based economy with strong government controls over major economic activities.
It possesses about one-fifth of the world's proven petroleum reserves, ranks as
the largest exporter of petroleum, and plays a leading role in OPEC. The
petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and
90% of export earnings. Saudi Arabia is encouraging the growth of the private
sector in order to diversify its economy and to employ more Saudi nationals.
Diversification efforts are focusing on power generation, telecommunications,
natural gas exploration, and petrochemical sectors. Almost 6 million foreign
workers play an important role in the Saudi economy, particularly in the oil
and service sectors, while Riyadh is struggling to reduce unemployment among
its own nationals. Saudi officials are particularly focused on employing its
large youth population, which generally lacks the education and technical
skills the private sector needs. Riyadh has substantially boosted spending on
job training and education, most recently with the opening of the King Abdallah
University of Science and Technology - Saudi Arabia''s first co-educational
university. As part of its effort to attract foreign investment, Saudi Arabia
acceded to the WTO in December 2005 after many years of negotiations. The
government has begun establishing six "economic cities" in different
regions of the country to promote foreign investment and plans to spend $373
billion between 2010 and 2014 on social development and infrastructure projects
to advance Saudi Arabia''s economic development.
|
Source : CIA |
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)
Registered &
Physical Address
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
Email : info@sabic.com
Premises
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 & 11115 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
·
Dr
Abdulrahman Abdullah Al Humaidi Director
·
Bander
Abdulaziz Al Wael Director
·
Abdullah
Abdulrahman Al Homoodi Director
·
Mohamed
S Abanumay Director
·
Abdullah
M Al Issa 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
· M S Humaid Senior
Planning Manager
· Naveed Sheikh Fareed Company
Secretary
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
Name of Shareholder
(s) Percentage
·
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
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.
Sabic Supply Management Organization Ltd is not a separate legal entity.
It is a division of the subject that is
responsible for internal issues relating to purchasing, account
management and local business development.
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 31/12/11 31/12/10
ASSETS
Current assets
Cash and cash
equivalents 50,389,372
50,648,387
Accounts
receivable 31,426,445
28,889,528
Inventories 31,463,970
26,122,077
Prepayments and
other current assets 19,121,688
11,439,378
Total current
assets 132,401,475 117,099,370
Non-current
assets
Investments 9,701,081
8,904,419
Property, plant
and equipment 165,804,557
164,888,871
Intangible assets
21,890,594
22,624,270
Other non-current
assets 2,985,941
4,062,973
Total non-current
assets 200,382,173 200,480,533
TOTAL ASSETS 332,783,648 317,579,903
LIABILITIES AND
EQUITY
Current
liabilities
Accounts payable 16,388,099
13,386,914
Accrued
liabilities and other payables 8,943,835
12,368,821
Short-term bank
borrowings 1,333,423
1,120,508
Current portion
of long-term debt 13,264,041
15,633,638
Zakat payable 3,140,396
1,794,833
Total current liabilities
43,069,794
44,304,714
Non-current
liabilities
Long-term debt 87,907,399
93,848,012
Employees’
benefits payable 8,554,791
7,528,538
Other non-current
liabilities 4,046,030
5,752,060
Total non-current
liabilities 100,508,220 107,128,610
TOTAL LIABILITIES
143,578,014 151,433,324
EQUITY
Shareholders’
equity
Share capital 30,000,000
30,000,000
Statutory reserve
15,000,000
15,000,000
General reserve 69,780,661
58,753,396
Retained earnings
23,241,750
17,028,665
Total
shareholders’ equity 138,022,411 120,782,061
Minority
interests 51,183,223
45,364,518
Total equity 189,205,634
166,146,579
TOTAL LIABILITIES AND EQUITY 332,783,648
317,579,903
Consolidated
Statement of Income
Sales 189,898,253
151,970,027
Cost of sales (127,767,893) (103,423,348)
GROSS PROFIT 62,130,360
48,546,679
Selling, general
and administrative expenses (13,291,989)
(10,654,084)
INCOME FROM MAIN
OPERATIONS 48,838,371
37,892,595
Investment and
other income 2,039,461
1,256,077
Financing charges
(2,992,641)
(3,394,268)
INCOME BEFORE
MINORITY INTERESTS AND ZAKAT 47,885,191 35,754,404
Minority
interests in the net earnings of subsidiaries (16,043,441)
(11,725,739)
INCOME BEFORE
ZAKAT 31,841,750
24,028,665
Zakat (2,600,000) (2,500,000)
NET INCOME FOR THE YEAR 29,241,750
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.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.25 |
|
UK Pound |
1 |
Rs.87.00 |
|
Euro |
1 |
Rs.69.83 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.