MIRA INFORM REPORT

 

 

Report Date :

20.11.2012

 

IDENTIFICATION DETAILS

 

Name :

S-OIL CORPORATION

 

 

Registered Office :

471, Gongdeok-dong, Mapo-gu, Seoul, Korea 121-805

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

06.01.1976

 

 

Com. Reg. No.:

116-81-36743

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Export/Import of Petroleum Refineries

 

 

No. of Employees :

2,636

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Exist

 

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)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

South Korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 

 

Basic

 

Company Name

S-OIL CORPORATION

(Korean Company Name : “에쓰-오일(주)”)

Registered Address

471, Gongdeok-dong, Mapo-gu, Seoul, Korea

Zip Code

121-805

Tel

+82-2-3772-5151

Fax

+82-2-786-4030

E-mail

hlbjo@s-oil.com

Website

www.s-oil.com

Trading Address

471, Gongdeok-dong, Mapo-gu, Seoul, Korea

(New Address System : 192, Baekbeom-ro, Mapo-gu, Seoul, Korea)

Tel

+82-2-3772-5151

Fax

+82-2-786-4030

Other Address-Onsan Factory

360, Sanam-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-231-2114

Fax

+82-52-231-2048

Type

Export/Import

Industry

Petroleum Refineries

  Main Business

Gasoline, Kerosene, Light Oil, Lubricants, Asphalt, Petrochemicals, LPG

Established (mm/dd/yyyy)

01/06/1976

The Subject owns the premises of Onsan Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Gasoline or Petrol(15101506)

Sell

Lubricating preparations(15121500)

Sell

Diesel fuel(15101505)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Kerosene(15101502)

Sell

Engine oil(15121501)

Sell

Chemistry reagents or solutions(41116105)

 

 

CEO’s

 

Name

Nasser Al-Mahasher

Date of Birth

08/06/1960

Title

President & CEO

Sex

Male

Nationality

Saudi Arabian

 

 

 

Profiles

 

Capital (KRW)

291,511,797,500

Employees

2,636

Formation

Listed Company (Korea Stock Exchange : 010950) as of 05/08/1987

A Company of S-OIL CORPORATION

Foreign Direct Investment Corporation

Bank Details

Woori Bank-East Yoido Branch

Hana Bank-Yoido Branch

Shinhan Bank-Yoido Nam Branch

Korea Development Bank-HQ Office

Corporate Registered No.

110111-0189955

Business Registered No.

116-81-36743

Permit & Licenses

Int’l Trade No.: 813156

Shareholder Position

Name

Shares

%

ARAMCO OVERSEAS COMPANY, B.V. ("AOC")

39,755,476

34.094

HANJIN ENERGY CO., LTD.(180111-0584903)

31,983,586

27.429

NATIONAL PENSION SERVICE(110171-0007134)

5,645,490

4.842

OTHERS

39,220,167

33.635

TOTAL

116,604,719

100.000

Company History

01/1976 Korea-Iran Petroleum Co., Ltd. was established as a joint venture between Ssangyong Cement Industrial Co., Ltd. and NIOC to secure stable supply of crude oil after the first oil crisis in the early 1970s

05/1980 Began operation of the first atmospheric distillation unit (90,000 B/D)

06/1980 Company name changed to Ssangyong Oil Refining Co., Ltd. as Ssangyong Cement Industrial Co., Ltd. took over NIOC's share in the Company

01/1981 Began operation of high-class lube base oil plant

05/1985 Began commercial operation of a gasoline manufacturing plant

05/1987 Launched initial public offering on the Korea Exchange

07/1989 Accomplished vertical integration in the lube oil sector with the production and supply of Dragon-branded automotive engine oil, utilizing high-quality lube base oil of international competitiveness

01/1991 Began operation of the second atmospheric distillation unit (240,000B/D)

04/1991 Entered into a petrochemical downstream by beginning operation of BTX plant that produces high value-added benzene, toluene and Xylene

05/1991 Concluded joint venture agreement and crude-oil purchase agreement with AOC. AOC invested USD 400 million for 35% stake in company shares, enabling the Company to push its Bunker-C cracking and desulfurizing complex projects

11/1991 Established R & D Center

01/1995 Began operation of the third atmospheric distillation unit (250,000 B/D)

03/1996 Began operation of the 1st stage Bunker-C Cracking Center facilities: HYC (Hydrocracking) 75,000 B/D, Hyvahl (Residue Desulfurization) 52,000 B/D

04/1997 Began operation of the 2nd stage Bunker-C Cracking Center Facilities : R2R (RFCC) 68,000 B/D, MHC (VGO HDS) 40,000 B/D. With the completion of the 1st and 2nd stage Bunker-C Cracking Centers, the Company owned the nation's largest Bunker-C cracking plants - the Bunker-C cracking plant (143,000 B/D) and the Bunker-C desulfurizing plant (92,000 B/D)

12/1997 Completed Xylene Center, one of the world's largest single plant facilities to Produce para-xylene with an annual production capacity of 650,000 tons

12/1999 Inaugurated stand-alone management system. As part of Ssangyong Group’s restructuring program, the Company bought back the equity held by Ssangyong Cement Industrial Co., Ltd., then the second largest shareholder, as treasury shares

03/2000 Company name changed to S-Oil Corporation

09/2000 Completed large-scale storage tanks with a combined capacity of 9 million barrels

12/2001 Implemented 2-for-1 stock split

11/2002 Completed 2nd Hyvahl Complex (52,000 B/D) to produce high value low-sulfur fuel oils and light oils from low-value high viscosity/highsulfur fuel oils

12/2002 Began production of Ultra-S (very high VI Group III) lube base oils, with the completion of total hydro-processing plants (hydrocracking, wax hydroisomerization and hydrofinishing)

09/2003 Acquired ISO9001 (Quality Management System) Certificate

07/2004 Launched S-Oil Bonus Card system

05/2005 Launched new-concept synthetic engine oil “SSU”

01/2006 Launched premium gasoline “S-Gasoline Premium”

06/2006 30th Anniversary of the Company

04/2007 Successfully concluded joint venture agreement between AOC and Hanjin Energy, and re-established the economic cooperation between an oil producing country and an oil consuming country

06/27/2011 Moved to the present HQ address from 45th Fl., Korea Life Insurance 63 Bldg., 60, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea (Yeouido Post Office Box 758)

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Nasser Al-Mahasher

Saudi Arabian

1960.08.06

Wayne State  Univ.
 Ex. Head of Saudi Petroleum Ltd. Tokyo
Ex. Head of Refining Operation & Engineering of Saudi Aramco

Director

Mr.

K.G. Al-Buainain

Saudi Arabian

1959. 01. 11

Saudi Aramco Senior Vice President  / Saudi King Fahd Univ. of Petroleum & Minerals

Director

Mr.

B.A. Abul-Hamayel

Saudi Arabian

1964. 01. 16

Univ. of Texas Austin / MIT MBA

Director

Mr.

Cho Yang-Ho

Korean

1949. 03. 08

Inha University, Korea

Director

Mr.

Seok Tae-Soo

Korean

1955.11.03

MIT MBA / Seoul National University, Korea

Outside Director

Mr.

S.A. Al-Ashgar

Saudi Arabian

1937. 09. 07

Univ. of Texas Austin, USA

Outside Director

Mr.

S.B. Al-Kaki

Saudi Arabian

1949.05.29

 Saudi King Fahd Univ. of Petroleum & Minerals

Outside Director

Mr.

H.T. Al-Saadoun

Saudi Arabian

1953.03.06

 Saudi King Fahd Univ. of Petroleum & Minerals

Outside Director

Mr.

Jung Moon-Soo

Korean

1949. 09. 21

Univ. of Michigan, USA

Outside Director

Mr.

Park Sang-Eon

Korean

1953. 04. 08

Seoul National University, Korea

Outside Director

Mr.

Ahn Yong-Seok

Korean

1962.01.07

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2012

17,833,778,000,000

12,493,201,000,000

159,075,000,000

(*)2011

31,913,863,000,000

13,204,101,000,000

1,192,426,000,000

(*)2010

20,511,068,000,000

10,003,498,000,000

710,066,000,000

2009

17,423,951,000,000

9,049,990,000,000

273,246,000,000

2008

23,000,290,510,213

7,655,788,692,167

446,214,250,304

2007

15,229,397,740,616

9,459,371,809,587

746,495,688,118

2006

14,565,353,496,739

6,663,938,543,924

758,563,379,017

2005

12,232,327,031,738

6,114,528,848,059

654,925,847,878

2004

10,688,705,170,836

5,545,661,724,236

941,103,632,216

(*) Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

600,000,000,000

Paid-Up Capital(KRW)

291,511,797,500

Total Issues Shares

116,604,719 (Common:112,582,792, Preferable:4,021,927)

 

Balance Sheet

 

Unit : Million Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

12,493,201

13,204,101

10,003,498

Current Assets

8,231,616

8,823,100

5,992,212

Cash & Cash Equivalents

561,720

875,701

852,630

Trade Receivables

2,563,941

2,639,085

1,769,708

Other Receivables

660,218

400,075

387,394

Current Financial Instruments

211,321

278,928

42,237

Derivatives

4,984

2,643

272

Inventories

4,216,586

4,617,119

2,934,764

Inventories

12,846

9,549

5,207

Non-Current Assets

4,261,585

4,381,001

4,011,286

Other Receivables

80,440

86,503

99,626

Other Financial Assets

74,476

77,816

96,394

Investment_Related Companies

292,805

292,805

25,490

Tangibles

3,768,746

3,882,460

3,752,354

Intangibles

41,055

37,000

30,464

Other Non-Current Assets

4,063

4,417

6,958

Total Liabilities

7,482,087

7,977,747

5,498,903

Current Liabilities

7,056,956

7,235,988

4,573,416

Trade Payables

2,243,979

2,617,848

1,798,131

Other Payables

819,366

901,160

591,907

Short-Term Borrowings

3,781,273

3,255,606

1,937,420

Derivatives

467

4,662

2,137

Accrued Income Tax

55,536

316,506

139,435

Provisions

7,528

8,094

2,711

Deferred Income Tax Credit

28,818

28,885

30,475

Other Current Liabilities

119,989

103,227

71,200

Non-Current Liabilities

425,131

741,759

925,487

Long-Term Borrowings

173,191

487,515

681,792

Provision for Severance & Retirement

30,877

24,165

16,812

Deferred Income Tax Credit

202,672

211,291

204,581

Other Payables

17,885

17,859

17,747

Derivatives

0

269

3,767

Other Non-Current Liabilities

506

660

788

Capital Stock

291,512

291,512

291,512

Capital Surplus

379,190

379,190

379,190

Installments

992,238

993,911

1,008,124

Treasury Stock

-1,876

-1,876

-1,876

Profit Surplus

3,350,050

3,563,617

2,827,645

Total Equity

5,011,114

5,226,354

4,504,595

Liab. & Shareholder’s Equity

12,493,201

13,204,101

10,003,498

 

Income Statement

 

Unit : Million Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

17,833,778

31,913,863

20,511,068

Cost of Sold Goods

17,357,172

29,695,742

19,252,374

Gross Profit

476,606

2,218,121

1,258,694

Selling Expenses

213,217

437,007

365,832

Admin. Expenses

36,463

83,611

69,623

Other Operating Income

276,516

702,752

517,522

Other Operating Expenses

274,785

761,617

476,126

Operating Income

228,657

1,638,638

864,635

Finance Income

128,364

326,402

241,760

Finance Expenses

147,565

379,443

230,423

Income Before Taxes

209,456

1,585,597

875,972

Income Taxes Expenses

50,381

393,171

165,906

Net Income

159,075

1,192,426

710,066

 

 

Cash Flows

 

Unit : Million Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

-134,750

440,040

826,576

Cash Flows from Operating

199,514

653,048

824,580

Interests Received

21,730

39,574

35,706

Interests Paid

-42,148

-57,192

-32,540

Income Taxes

-319,436

-201,874

-8,004

Dividends Received

5,590

6,484

6,834

Cash Flows from Investing

-5,865

-980,127

-589,607

Cash Inflow from Investing

92,656

55,297

490,058

Cash Outflows for Investing

-98,521

-1,035,424

-1,079,665

Cash Flows from Financing

-173,366

563,158

-205,606

Cash Inflows from Financing

199,878

1,006,955

319,380

Cash Outflows from Financing

-373,244

-443,797

-524,986

Increase/Decrease in Cash

-313,981

23,071

31,363

Cash at the Beginning of Year

875,701

852,630

821,267

Cash at the End of Year

561,720

875,701

852,630

 

 

Products, Technologies, Services Description

 

Main Products & Services

OIL REFINING PRODUCTS

Gasoline, Premium Gasoline

Diesel

Kerosene

Bunker-C

 

LUBE PRODUCTS

Lube base oil

Marine lubricants

 

PETROCHEMICALS

Benzene

Toluene

Xylene

Para-xylene

 

Brand Name : S-Gasoline, S-Diesel, Ultra-S

 

 

Trade Partners & Competitors

 

Suppliers

SAUDI ARAMCO (SAUDI ARABIA)

Customers

KOREA SOUTHERN POWER CO., LTD.(110111-2207135)

KOREA EAST-WEST POWER CO., LTD.(110111-2207151)

OCEAN POLICE OFFICE

MINISTRY OF DEFENSE, KOREA

Competitors

SK ENERGY CO., LTD.

SK BLDG., 99, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2121-5114  FAX:+82-2-2121-7001

 

GS CALTEX CORPORATION

GS GANGNAM TOWER, 679, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2005-1114 FAX:+82-2-2005-6051

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANJIN ENERGY CO., LTD.(180111-0584903)

KOREAN AIR LINES CO., LTD.(110111-0108484)

ARAMCO OVERSEAS CO.,B.V

SAUDI ARABIAN OIL COMPANY

Joint Venture

S-OIL TOTAL LUBRICANT CO., LTD.(110111-2805004)

(50.%+1 held by the subject company) With TOTAL RAFFINAGE MARKETING S.A.

Subsidiary

S-INTERNATIONAL LTD.(LIBERIA)

(100.0% held by the subject company)

NOVASAGE CHAMBERS,PO BOX 3018, LEVEL 2, CCCS BUILDING, BEACH ROAD, APIA, SAMOA

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

  11,492,113

20,437,472

11,851,176

Domestic

6,341,665

11,476,391

8,659,892

Total

17,833,778

31,913,863

20,511,068

The Subject exports to China and USA.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

Seoul High Court

The Republic of Korea

SK, GS, Hyundai, Incheon and the Subject Company

Claim for Compensation

Total 158,420

2nd Round is proceeding.

 

Supreme Court

The Subject Company

Fair Trade Commission

Cancellation on Imposed Taxes

Total 668,954 (The Subject : 38,466)

3rd Round is proceeding.

 

Busan High Court

The Subject Company

Ulsan Tax Office

Cancellation on Imposed Taxes

4,907

2nd Round is proceeding.

 

Seoul High Administrative Court

The Subject company & Others(LPG 6 Companies)

Fair Trade Commission

Cancellation on Imposed Taxes

Total 669,000((The Subject : 38,500)

2nd round is proceeding

 

 

News Clipping

 

---

 

 

-


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.96

UK Pound

1

Rs.87.49

Euro

1

Rs.70.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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