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Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
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Name : |
PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC) |
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Registered Office : |
Shakir Al Kazimi
Building, Khalid Ibn Waleed Street, P O Box 1084, Safat 13011 |
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Country : |
Kuwait |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
23.07.1963 |
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Com. Reg. No.: |
9049, Safat |
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Legal Form : |
Kuwaiti Shareholding Company - KSC |
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Line of Business : |
Producers of petrochemicals |
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No. of Employees : |
1700 employees |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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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) |
|
Kuwait |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
Kuwait - ECONOMIC OVERVIEW
Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 104 billion barrels - about 7% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million barrels per day by 2020. The rise in global oil prices throughout 2011 is reviving government consumption and economic growth. Kuwait has experienced a 20% increase in government budget revenue, which has led to higher budget expenditures, particularly wage hikes for many public sector employees. Kuwait has done little to diversify its economy, in part, because of this positive fiscal situation, and, in part, due to the poor business climate and the acrimonious relationship between the National Assembly and the executive branch, which has stymied most movement on economic reforms. In 2010, Kuwait passed an economic development plan that pledges to spend up to $130 billion over five years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy.
|
Source : CIA |
Company Name : PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC)
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company - KSC
Registration Date : 23rd July 1963
Commercial Registration Number : 9049, Safat
Membership Number : 544
Issued Capital : KD 600,000,000
Paid up Capital : KD 600,000,000
Total Workforce : 1,700
Activities : Producers of petrochemicals.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
PETROCHEMICAL
INDUSTRIES COMPANY KSC (PIC)
Registered &
Physical Address
Building : Shakir Al Kazimi Building
Street : Khalid Ibn Waleed Street
PO Box : 1084
Town : Safat 13011
Country : Kuwait
Telephone : (965) 3211000 / 2448280 / 2422141
Facsimile : (965) 3211171 / 2405791 / 2445913
Email : media@pic.com.kw
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Safat.
Branch Office (s)
Location Description
·
PO Box:
9116 Owned
fertiliser plant
Ahmadi 61002
Tel: (965) 3260622 / 3261544
Fax: (965) 3261860
·
PO Box:
9453 Owned
Poly-Propylene Plant
Ahmadi 61005
Tel: (965) 3262032
Fax: (965) 3261779
·
Subject
operates a further 9 branches located throughout Kuwait.
Name Position
· Mrs Maha Abdulrahman Mulla Hussain Chairman
& Managing Director
· Shaza Nasser Al Sabah Director
·
Hosneya Sayed Hashim Director
·
Anwar Saeed Ben Salama Director
·
Dr Mohammed Al Ramadan Director
· Mohammed
Ghazi Al Mutairi Director
· Abdulhadi Al Awad Director
· Saad Mohamed Alajmi Administration
Manager
· Anwar Salamah Manufacturing
Manager
· Mohamed Al Hasawi Projects
Manager
· Salah Sayid Behbehani Sales Manager
·
Ahmed A
Habib Technical
Manager
Date of Establishment : 23rd
July 1963
Legal Form :
Kuwaiti Shareholding
Company - KSC
Commercial Reg. No. : 9049, Safat
Membership
No. : 544
Issued Capital : KD 600,000,000
Paid up Capital : KD 600,000,000
Name of Shareholder
(s) Percentage
·
Kuwait
Petroleum Corporation (KPC) * 100%
Salhiya Complex, 1st
– 15th Floors
Fahed Al Salem Street
PO Box : 26565
Safat 13126
Tel : (965) 2455455 / 2463318
Fax : (965) 2467159 / 2423371
/ 2451403
* Kuwait Petroleum Corporation (KPC) is wholly owned by the
Government of Kuwait and is responsible to the Ministry of Oil.
Subject is a wholly owned subsidiary of Kuwait Petroleum Corporation
(KPC), which has overall responsibility for Kuwait’s local and foreign oil
industry investments. The following concerns are wholly or partly owned by KPC:
Name Percentage
Held
·
Kuwait
Oil Co (KOC) 100 %
PO Box: 9758
Ahmadi 61008
Tel:
(965) 3989111 / 3984111
Fax: (965) 3982661
·
Kuwait
National Petroleum Co (KNPC) 100 %
PO Box: 70
Safat 13001
Tel: (965) 2420121 / 2449401
Fax: (965) 2442954
·
Kuwait
Oil Tanker Co (KOTC) 100 %
PO Box: 810
Safat 13009
Tel: (965) 2455455
Fax: (965) 2445907
·
Kuwait
Foreign Petroleum Exploration Co (KUFPEC) 100 %
PO Box: 5291
Safat 13053
Tel: (965) 2421677
Fax: (965) 2437985
·
Kuwait
Santa Fe Braun for Engineering & Petroleum Enterprises KSC 100 %
PO Box: 9282
Ahmadi 61003
Tel: (965) 3985011
Fax: (965) 3981030
·
Kuwait
Aviation Fuelling Co KSC (KAFCO) 100 %
PO Box: 1654
Safat 13017
Tel: (965) 4330507 / 4330483
Fax: (965) 4330475
·
SFIC
Holdings (Cayman) Inc 100 %
Cayman Islands
·
KPC Holdings
(Aruba) AEC 100 %
·
Petrochemical
Industries Holdings NV 100 %
·
KP
North Sea Holdings Ltd 100 %
·
Gulf
Industrial Investment Co EC 100 %
·
Kuwait
Drilling Co KSC 49 %
·
Gulf
Petrochemical Industries Co (GPIC) 33 %
Bahrain
·
Sino
Arab Chemical Fertilizer Co (SACF) 30 %
China
·
Boubyan
Petrochemical Co 10 %
·
Arabian
Oil Company 10 %
Activities: Petrochemical Industries Company was
founded with the objective of setting up various types of
petrochemical industries to promote and
diversify the sources of national income through exploitation
of the natural gas that accompanies crude oil reserves.
Facilities
Subject’s facilities have undergone several phases of expansion and new
plants have been constructed over the past few years. The company now claims
the largest ammonia and urea manufacturing complex in the Middle East, and an
ultra-modern plant for salt and chlorine products. PIC’s fertiliser plants have
gone through several stages of expansion, merger and development over the years
and now comprise of the following units:
4 - Liquid ammonia plants
3 - Urea plants
1 - Concentrated sulphuric acid plant
Production Capacity
Product Daily Production
Capacity Daily Production
Capacity
(Designed) (Actual)
Salt 150
tonnes 100
tonnes
Chlorine Gas 75 tonnes 38 tonnes
Liquid Chlorine 50 tonnes 25 tonnes
Liquid Caustic Soda 84 tonnes 43 tonnes
Caustic Soda Flakes 50 tonnes 17 tonnes
Solid Caustic Soda 80 tonnes 17 tonnes
Hydrochloric acid 40
cubic metres 31 cubic metres
Sodium Hypochlorate 35 cubic
metres 17 cubic metres
Compressed Hydrogen Gas 303 cubic metres 129 cubic metres
·
S.K.
Global North
Korea
·
Transfert
Ltd. India
·
Minaz
International India
·
Ahmed
Jaffer & Company (P) Ltd Pakistan
·
Yordan
Obeji & Co Jordan
·
Al
Matin Co. for Trade & Industry Syria
·
Omnitrade
Marketing Lebanon
·
Tunice
Negoce Tunisia
·
Mitsubishi
Corporation Hong
Kong
Import
Countries: United States of
America
Operating Trend: Steady
Subject has a
workforce of approximately 1,700 employees.
Financial
highlights provided by local sources are given below:
Currency: Kuwaiti
Dinars (KD)
Consolidated
Income Statement 31/03/11 31/03/10
Sales 612,639,372
452,127,090
Cost of sales (505,958,998)
(408,251,369)
GROSS PROFIT 106,680,374
43,875,721
Share of results
of associates 107,704,606
56,716,450
Distribution,
general and administrative expenses (20,064,285)
(16,625,383)
Interest income 1,049,108
1,028,399
Other income 4,079,185
2,359,584
Other expenses (5,906,497)
(2,307,631)
Finance costs (1,806,517)
(2,571,315)
Net (loss) gain
on foreign exchange (2,687,885)
1,650,029
Compensation
claims -
9,215,585
Impairment of
property, plant and equipment -
(3,864,362)
PROFIT BEFORE
INCOME TAX EXPENSE AND
BOARD OF
DIRECTORS’ REMUNERATION 189,048,089
89,477,077
Provision for
income tax (10,820,239)
(6,097,104)
Board of
directors’ remuneration (40,900)
(42,200)
PROFIT FOR THE
YEAR 178,186,950
83,337,773
OTHER
COMPREHENSIVE INCOME
Foreign currency
translation adjustments (22,951,577)
4,276,326
Unrealised (loss)
gain on financial assets available
for sale (1,540,000)
4,180,000
OTHER
COMPREHENSIVE (LOSS) INCOME FOR
THE YEAR (24,491,577)
8,456,326
TOTAL
COMPREHENSIVE INCOME 153,695,373
91,794,099
Total profit for
the year attributable to:
Equity holders of
the parent company 177,612,932
82,765,275
Non-controlling
interests 574,018
572,498
178,186,950 83,337,773
Total
comprehensive income attributable to:
Equity holders of
the parent company 153,121,355
91,221,601
Non-controlling
interests 574,018
572,498
153,695,373 91,794,099
Consolidated
Balance Sheet 31/03/11 31/03/10
ASSETS
Non-current
assets
Property, plant
and equipment 150,723,078
167,902,877
Goodwill 97,613,292
103,164,440
Intangible assets
1,145,846
1,410,852
Investments in
associates 285,174,608
299,986,657
Financial asset
available for sale 19,140,000 20,680,000
Revolving loans
due from a joint venture 1,735,062
-
Due from the
ultimate parent company 102,672,390
94,391,642
Spare parts 12,791,425
13,214,735
Other assets 85,915,828
89,744,518
756,911,529 790,495,721
Current assets
Inventories 28,938,203
29,886,505
Accounts
receivable and prepayments 101,049,949
93,237,134
Due from related
parties 873,092
2,327,121
Bank balances,
deposits and cash 198,451,227
83,501,121
329,312,471 208,951,881
TOTAL ASSETS 1,086,224,000
999,447,602
EQUITY AND
LIABILITIES
Equity
Share capital 600,000,000
600,000,000
Statutory reserve
120,437,773
102,672,390
Foreign currency
translation reserve (20,698,317)
2,253,260
Cumulative changes
in fair values 8,140,000
9,680,000
Equity
attributable to equity holders of the parent
company 707,879,456
714,605,650
Non-controlling
interests 3,053,710
3,470,400
Total equity 710,933,166
718,076,050
Non-current
liabilities
Long term
borrowings 39,879,644
44,869,380
Obligations under
finance leases 13,214,236
16,513,320
Employees’ end of
service benefits 14,457,367
13,170,306
Other liabilities 28,754,840
19,651,140
96,306,087 94,204,146
Current liabilities
Accounts payable
and accruals 109,540,813
95,169,231
Short term
borrowings and current portion of long term
borrowings 7,523,231
15,407,130
Obligations under
finance leases 1,068,799
592,860
Dividends payable
159,847,549
74,484,527
Due to related
parties 1,004,355
1,513,658
278,984,747 187,167,406
Total liabilities
375,290,834
281,371,552
TOTAL EQUITY AND LIABILITIES 1,086,224,000
999,447,602
Local sources
consider subject’s financial condition to be Good.
·
Bank of
Kuwait & the Middle East (KSC)
Abdullah Al Salem Street
PO Box: 71
Safat 13001
Tel: (965) 22459771
·
National
Bank of Kuwait SAK
Abdullah Al Salem Street
PO Box: 95
Safat 13001
Tel: (965) 22421161
·
Commercial
Bank of Kuwait SAK
Mubarek Al Kabir Street
PO Box: 2861
Safat 13029
Tel: (965) 22411001
Subject’s payment
record is reported to be met in a generally prompt manner.
Subject is a wholly
owned subsidiary of Kuwait Petroleum Corporation (KPC), which in turn is owned
by the government of Kuwait and as the subject is deemed trustworthy for
respecting its financial trade commitments.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.46 |
|
UK Pound |
1 |
Rs.83.13 |
|
Euro |
1 |
Rs.70.99 |
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 |
|
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.