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Report Date : |
08.05.2013 |
IDENTIFICATION DETAILS
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Name : |
EQUATE PETROCHEMICAL CO KSC (C) |
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Registered Office : |
Olympia Towers, Ras Al Ard, Block 2, 8th Floor Salem Al
Mubarak Street Salmiya PO Box 4733 Safat 13048 |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
04.12.1995 |
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Legal Form : |
Kuwaiti Shareholding Company Closed – KSC (C) |
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Line of Business : |
Production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene |
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No. of Employees : |
1,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Kuwait |
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 |
KUWAIT - ECONOMIC OVERVIEW
Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 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 and 2012 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 historically 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 : EQUATE PETROCHEMICAL CO KSC (C)
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company Closed – KSC (C)
Registration Date : 4th December 1995
Trade Licence Number : 63392
Chamber Membership Number : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
Total Workforce : 1,000
Activities : Production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
EQUATE PETROCHEMICAL CO KSC (C)
Building : Olympia
Towers, Ras Al Ard, Block 2, 8th Floor
Street : Salem Al
Mubarak Street
Area : Salmiya
PO Box : 4733
Town : Safat 13048
Country : Kuwait
Telephone : (965) 24343666
/ 24312568 / 23436661 / 1898888
Facsimile : (965) 24312560
/ 24312557 / 24312558
Email : hayatm@shb.equate.com
/ pemarket@equate.com
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Safat.
Branch Office (s)
Location Description
· PO Box: 9116 Sales
Office
Safat 13048
Tel: (965)
22445655
Fax: (965)
22415121
· Equate Complex Production
plant
PO Box:
9729
Ahmadi 61008
Tel: (965)
23260326 / 23725630
· Shuaiba Administrative
Office
Tel:
(965) 23260238
Fax:
(965) 23260302
Name Position
· Yousef Al Ateeqi Chairman
· Raja Zeidan Vice
Chairman
· Bader Al Sumait Director
· Dabbous Al Dabbous Director
· Jehad Al Hajji Director
· Luciano Polo Director
· Luis Antuna Director
· Mauro Gregorio Director
· Sheikh Mubarak Al
Sabah Director
· Mohammad Hussain President
· Saad A Al Shweib Vice
President
· Khalid Bahamra General
Manager
· Mohamed Al Benali Technical
Manager
· Reimer Hasche Operations
Manager
· Tom Liles Production
Manager
· Travis Spoede Finance
Manager
· M Al Mazeedi Logistics
Manager
· Fahd Al Sumaid Public
Relations Manager
· Salah Al Kharji Chief
Financial Officer
Date of
Establishment : 4th
December 1995 (Production began in November 1997)
Legal Form : Kuwaiti
Shareholding Company Closed – KSC (C)
Trade Licence No. : 63392
Industrial Licence No. : 95-449-MM
Chamber Member No. : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
· Petrochemical
Industries Company KSC (PIC) * 42.5%
Shakir Al Kazimi
Building
Khalid Ibn Waleed
Street
PO Box: 1084
Safat 13011
Kuwait
Tel: (965)
22448280 / 22422141
Fax: (965)
22405791 / 22445913 / 23261544
· The Dow Chemical
Company
42.5%
United States of
America
· Bubiyan
Petrochemicals Company 9.0%
· Qurain
Petrochemical Industries Company 6.0%
Subject is partly owned by Petrochemical Industries
Company KSC (PIC) which in turn is wholly owned by 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%
· Equate Marketing
Co 49%
Bahrain
· Gulf Petrochemical
Industries Co (GPIC) 33%
Bahrain
· Sino Arab Chemical
Fertilizer Co (SACF) 30%
China
· Arabian Oil
Company 10%
Activities: Engaged in the production of Ethylene, Ethylene Glycol, Polyethylene
and Polypropylene. Production
began at the US$ 2 billion Shuaiba complex in November 1997.
Subject has been awarded the ISO 9002
certificate for all its operating units and also received the ISO 14001 in
2004.
The company is going to build a new ethylene and derivatives complex in
Shuaiba, named Olefins II project. Fluor Corporation has signed a MoU to
provide engineering, procurement and construction management services for the
utilities and infrastructure portion of the project. This scope is in addition
to the programme management contract it was awarded in 2004 to perform overall
management consultancy and front-end engineering services.
The billion-plus-dollar project is located approximately 40 km, south of Kuwait
City in Shuaiba. Olefins II will include construction of an
850,000-tonnes-per-year (tpy) cracker, a 600,000 tpy ethylene glycol unit, a
450,000 tpy ethyl benzene/styrene monomer unit and a debottleneck expansion of an
additional 225,000 tpy of polyethylene capacity at the existing complex.
Olefins II will be similar in volume to the first project and, consequently,
the completed facility will double the capacity at the existing olefins
complex.
Production Capacity: Ethylene 850,000 tonnes per annum
Ethylene
Glycol 550,000 tonnes per
annum
Propylene 600,000 tonnes per annum
Import Countries: Europe and the United States of America.
Operating Trend: Steady
Subject has a workforce of approximately 1,000 employees.
Financial highlights provided by local sources are given below:
Currency: United States Dollar (US$)
Year
Ending 31/12/09: Year Ending
31/12/10: Year Ending
31/12/11:
Total Sales US$ 1,050,000,000 US$
2,000,000,000 US$
2,500,000,000
Net Profit US$ 510,000,000 US$
880,000,000 US$
1,050,000,000
Local sources consider subject’s financial condition to be Good.
·
National Bank of Kuwait SAK
Main Branch
Ahmadi
Tel: (965) 23981188 / 23981189
Fax: (965) 23985643
·
Bank of Kuwait & the Middle East KSC
Abdullah Al Salem Street
Darwaza Abdul Razzak
PO Box: 71
Safat 13001
Tel: (965) 22459771
Fax: (965) 22461430
No complaints regarding subject’s payments have been reported.
Credit amount 50,000 56,000 340,000
Amount overdue 0 0 0
Payment terms 90
days 90 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Pounds
Sterling Pounds Sterling Pounds Sterling
Equate Petrochemical Co KSC (C) was incorporated in 1995 with production
beginning in 1997. It is the largest petrochemical project in Kuwait and is
42.5% owned by the well known Petrochemical Industries Company KSC (PIC).
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.54.27 |
|
|
1 |
Rs.84.31 |
|
Euro |
1 |
Rs.70.99 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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.