MIRA INFORM REPORT

Report Date :

26.09.2012

IDENTIFICATION DETAILS

Name :	JUBAIL ENERGY SERVICES COMPANY (JESCO)
Registered Office :	Jubail Industrial City PO Box: 10997 Jubail 31961
Country :	Saudi Arabia
Date of Incorporation :	25.03. 2007
Com. Reg. No.:	2055008208, Jubail
Legal Form :	Limited Liability Company
Line of Business :	Manufacturers of seamless pipe products
No. of Employees :	700

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 :	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 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Saudi Arabia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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

SUMMARY

Company Name : JUBAIL ENERGY SERVICES COMPANY (JESCO)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 25^th March 2007

Commercial Registration Number : 2055008208, Jubail

Chamber Membership Number : 96660

Issued Capital : SR 1,050,000,000

Paid up Capital : SR 1,050,000,000

Total Workforce : 700

Activities : Manufacturers of seamless pipe products

Financial Condition : Undetermined

Payments : Nothing detrimental uncovered

Person Interviewed : Abdul Ghani Kapdi, Finance Manager

COMPANY NAME

JUBAIL ENERGY SERVICES COMPANY (JESCO)

ADDRESS

Registered & Physical Address

Location : Jubail Industrial City

PO Box : 10997

Town : Jubail 31961

Country : Saudi Arabia

Telephone : (966-3) 3581125 / 3581321

Facsimile : (966-3) 3581005

Email : info@jesco.com.sa / gani.kapdi@jesco.com.sa

Premises

Subject operates from a large suite of offices and a factory that are rented and located in the Industrial Area of Jubail.

Branch Office (s)

Location Description

· Al Faisaliah Area Office premises

Jubail

Tel: (966-3) 8132255

Fax: (966-3) 8132244

KEY PRINCIPALS

Name Position

· Adel Saleh A Ghadban Chairman

· Mohamed Abdullah Al Ahmed Administration Manager

· Zayed Abdullatif Ahmed Al Baraq Chief Financial Officer

· Abdulaziz Shaheen Al Dossary Commercial Manager

· Mubarak Al Shamary Public Relations Manager

· Majid Al Dawas Marketing Manager

· Abdul Ghani Kapdi Finance Manager

LEGAL FORM & OWNERS

Date of Establishment: 06/03/1428 Hijri (corresponding to 25^th March 2007)

Legal Form : Limited Liability Company

Commercial Reg. No. : 2055008208, Jubail

Chamber Member No.: 96660

Issued Capital : SR 1,050,000,000

Paid up Capital : SR 1,050,000,000

Name of Shareholder (s) Percentage

· Industrialization & Energy Services Co (TAQA) 51%

· Duferco Saudi Ltd 10%

· Abdullah S & Sons Co Ltd ]

]

· Fadid Commercial & Industrial Co ]

] 39%

· International Trading & Contracting Co ]

]

· Nasser Mohamed Al Otaibi ]

OPERATIONS

Activities: Engaged in the manufacture of seamless pipe products.

Production Capacity: 400,000 metric tons per year.

Import Countries: Europe and the Far East.

Subject has a workforce of approximately 700 employees.

FINANCIAL DATA

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

BANKERS

· National Commercial Bank

PO Box: 58

Jubail

Tel: (966-3) 3612896

Fax: (966-3) 3611750

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.53
UK Pound	1	Rs.86.82
Euro	1	Rs.69.03

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
--	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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