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Report Date : |
29.01.2013 |
IDENTIFICATION DETAILS
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Name : |
SAUDI TELECOMMUNICATIONS CO (STC) |
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Registered Office : |
STC Building Al Mursalat City PO Box 88945 & 87912 & 67668
Riyadh 11517 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2011 |
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Year of Incorporation : |
1965 |
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Com. Reg. No.: |
1010150269, Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
National telecommunication company. |
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No. of Employees : |
23,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
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 |
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 TELECOMMUNICATIONS CO (STC)
Doing Business As : SAUDI TELECOM CO
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Start Date : 1965
Registration Date : 29th June 1998
Commercial Registration Number : 1010150269, Riyadh
Chamber Membership Number : 90247
Issued Capital : SR 15,000,000,000
Paid up Capital : SR 15,000,000,000
Total Workforce : 23,000
Activities : National telecommunication company.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
SAUDI TELECOMMUNICATIONS CO (STC)
DOING BUSINESS AS: SAUDI TELECOM CO
Building : STC Building
Area : Al Mursalat
City
PO Box :
88945 & 87912 & 67668
Town : Riyadh 11517
Country : Saudi Arabia
Telephone : (966-1) 4637225
/ 4525555
Facsimile : (966-1) 4052310
/ 4525229
Email : contact@stc.com.sa
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Riyadh.
Name Position
· Dr Mohammed Bin
Suleiman Al Jasser Chairman
· Khaled Bin
Abdulrahman Al Rajhi Board
Member
· Mohammed Bin Omran
Al Omran Board
Member
· Abdulrahman Bin
Abdulaziz Mazi Board
Member
· Abdulaziz Bin
Haban Alhabdan Board
Member
· Mohammed Bin
Abdullah Al Kharashi Board
Member
· Dr Hamed Bin
Suleiman Al Qassumi Board
Member
· Mohammed Bin Saleh
Al Daham Board
Member
· Ibrahim Bin Ali Al
Hassen Board
Member
· Khalid Bin
Abdullah Al Melhem Executive
President
· Saud Bin Majid Al
Dowaish Al
Jawal Manager
· Khalid Bin
Abdullah Al Ajlan Networks
Manager
· Abdurrzag Mohammed
Abu Bakar Commercial
Manager
· Abdullah Omar
Bajabaa Finance
Manager
· Khaled Abdurhman
Al Jaser Marketing
Manager
· Ibrahim Abdulaziz
Al Dhobaie Information
Technology Manager
· Saad Ahmed Al
Demiaty Manager
- International Services
· Dr Abdullah Ali Al
Moosa Internet
Services Manager
· Mohamed Ibrahim Al
Mohna Human
Resources Manager
Date of
Establishment : 29th
June 1998
History : Subject was
originally established in 1965 as a department of the Ministry of Post,
Telegraphs and
Telephones.
However, in 1998, subject became a legal
entity and was registered as a Joint Stock
Company. This was a result of the Saudi
government’s approval of the plan to privatise the telecommunications sector.
In
December 2002, 90,000,000 shares in the subject were made available in an
initial public offering, which was fully subscribed in early 2003.
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1010150269, Riyadh
Chamber Member No. : 90247
Issued Capital : SR 15,000,000,000
Paid up Capital : SR 15,000,000,000
· Pubic Investment
Fund * 70%
· General
Organisation for Social Insurance 5%
· Public Pension
Fund 5%
· Saudi nationals
& private investors 20%
* The Pubic
Investment Fund is directly responsible to the Saudi Government.
· Arabian Internet
and Communications Services LLC 100%
Saudi Arabia
· Telecom Investment
Company Ltd 100%
Saudi Arabia
· STC Bahrain BSCC 100%
Bahrain
· BT Axis Telecom
Indonesia 80.10%
Indonesia
· Gulf Digital Media
Holding BSCC 71.00%
Bahrain
· Sale for Distribution
& Communication Co Ltd 60.00%
Saudi Arabia
· Arab Submarine
Cables Company Ltd 50.00%
Saudi Arabia
· Call Center
Company 50.00%
Saudi Arabia
· Arab Satellite
Communications Organization (Arabsat) 36.66%
Saudi Arabia
· Oger Telecom Ltd 35.00%
United Arab
Emirates
· Kuwait Telecom
Company KSCC 26.00%
Kuwait
· Binariang GSM
Holding Group 25.00%
Malaysia
Activities: Subject is responsible for the national and international telecommunication
services throughout the
Kingdom of Saudi Arabia.
Services include full feature telephones for home, office and commercial
sites, as well as wireless communications that include GSM, paging
and satellite technologies. The company has 3.3 million working lines at the
end of July 2002.
This division is responsible for STC’s
mobile network. By the end of 2002 it had increased the number of mobile lines
to reach a total of 5,007,965 for the Kingdom, a 98% increase that is an
average of 23.5 mobile subscribers out of a possible 100.
Import Countries: United States of America and Europe.
Operating Trend: Steady
Subject has a workforce of approximately 23,000 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR 000’s)
Consolidated
Balance Sheet
31/12/11 31/12/10
Assets
Cash 6,588,554 6,050,677
Short-term investments 2,445,762 385,142
Accounts receivable 8,755,480 8,707,358
Prepayments and other current assets 4,177,239 3,561,035
Total current assets 21,967,035 18,704,212
Investments in equity 2,682,441 2,540,494
Property, plant and equipment 55,085,184 55,127,443
Intangible assets 29,317,791 31,837,104
Other non-current assets 2,349,329 2,571,666
Total non-currents assets 89,434,745 92,076,707
Total assets 111,401,780 110,780,919
Liabilities and equity
Account payable 5,190,003 7,036,414
Other payables – current 3,666,828 3,508,500
Accrued expenses 8,576,456 6,058,002
Deferred revenues 1,857,994 1,568,491
Murabaha and loans – current portion 5,971,814 8,446,926
Total current liabilities 25,263,095 26,618,333
Murabaha and loans – non-current portion 23,959,617 21,741,130
Provisions for end of service benefits 3,062,097 2,995,371
Other payables – non-current 5,034,653 5,961,740
Total non-current liabilities 32,056,367 30,698,241
Total liabilities 57,319,462 57,316,574
Shareholders’ equity
Capital 20,000,000 20,000,000
Statutory reserve 10,000,000 10,000,000
Retained earnings 19,516,064 16,287,412
Other reserves (1,133,336) (1,269,415)
Financial statements translation differences (1,474,423) (22,071)
Total shareholders’ equity 46,908,305 44,995,926
Non-controlling interests 7,174,013 8,468,419
Total equity 54,082,318 53,464,345
Total liabilities and equity 111,401,780 110,780,919
Consolidated
Statement of Income
Sales 55,662,079 51,786,828
Cost of services (24,333,827) (21,464,230)
Gross profit 31,328,252 30,322,598
Operating expense
Selling and marketing expenses (7,424,448) (7,083,100)
General and administrative expenses (3,878,940) (3,618,983)
Depreciation and amortization (8,853,844) (8,642,204)
Total operating expenses (20,157,232) (19,344,287)
Operating income 11,171,020 10,978,311
Other income and expenses
Cost of early retirement (413,529) (605,559)
Finance cost (2,237,858) (1,780,670)
Interest 449,904 308,727
Other (481,184) 2,076,253
Other income and expenses, net (2,682,667) (1,249)
Net income before Zakat, tax and
non-controlling interests 8,488,353 10,977,062
Provision for Zakat (118,002) (118,208)
Provision for tax (478,845) (820,171)
Net income before non-controlling interests 7,891,506 10,038,683
Share of non-controlling interests (162,854) (602,361)
Net income of the year 7,728,652 9,436,322
Local sources consider subject’s financial condition to be Good.
·
National Commercial Bank
Batha Branch
PO Box: 34
Riyadh 11411
Tel: (966-1)
4010076 / 4025084
Fax: (966-1)
4034625
·
Saudi British Bank
PO Box: 2907
Riyadh 11462
Tel: (966-1)
4794400
No complaints regarding subject’s payments have been reported.
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.53.89 |
|
|
1 |
Rs.84.92 |
|
Euro |
1 |
Rs.72.51 |
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 |
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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 |
|
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 |
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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 |
|
<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.