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Report Date : |
12.04.2014 |
IDENTIFICATION DETAILS
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Name : |
PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC) |
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Registered Office : |
Petrochemical Industries Company Building, Khalid Ibn Waleed Street, PO
Box: 1084, Safat 13011 |
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Country : |
Kuwait |
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Financials (as on) : |
31.03.2013 (Consolidated) |
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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 |
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Line of Business : |
Producers of petrochemicals |
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No. of Employees : |
600 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 - more than 6% 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. Budget surpluses have stayed around 30% of GDP, which has led to
higher budget expenditures, particularly wage hikes for many public sector
employees, as well as increased allotments to Kuwait’s Future Generations Fund.
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, though much
of these funds have yet to be allocated.
|
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 :
600
Activities :
Producers of petrochemicals.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
PETROCHEMICAL
INDUSTRIES COMPANY KSC (PIC)
Registered &
Physical Address
Building : Petrochemical
Industries Company 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
Muhammad Al Farhood Chairman
Mazen Al Sardi Vice Chairman
Asaad Ahmad Al Saad Director
Ahmad Al Jimaz Director
Nasser Al Shammaa Director
Nawal Al Fuzaia Director
Ahmad Habeeb Director
Abdul Rasool Jafar Deputy
Chief Executive Officer Olefins
Abdullah Ahmad Alswailem Deputy
Chief Executive Officer Fertilizer
Hadi Hasan Abul Redhaei Deputy
Chief Executive Officer
Aromatics
Saad Abu Khousah Deputy
Chief Executive Officer Finance
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 %
Piccan Holding Inc 100 %
Canada
ME Global BV 50 %
Netherlands
ME Global Canada Inc 50 %
Canada
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 the
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
PIC Agents
Tenant Limited Australia
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 600 employees.
Financial highlights provided by local sources are given below:
Currency: Kuwaiti Dinars (KD)
Consolidated Income Statement 31/03/13 31/03/12
Sales 658,805,645 713,761,070
Cost of sales (550,075,007) (574,003,790)
Gross profit 108,730,638
139,757,280
Share of results of associates 153,390,987 152,967,738
Distribution, general and administrative
expenses (24,455,499) (24,710,623)
Interest income 2,482,167 1,455,281
Other income 6,090,839 17,566,649
Other expenses (1,133,370) (1,978,468)
Finance costs (1,258,124) (1,503,458)
Net loss on foreign exchange (5,485,998) (3,089,616)
Provision for legal claim
- (695,400,000)
Profit (loss)
before income tax expense and board
of directors’
remuneration 238,361,640
(414,935,217)
Provision for income tax (8,985,370) (18,514,244)
Board of directors’ remuneration (43,100) (6,000)
Profit (loss) for
the year 229,333,170
(433,455,461)
Other comprehensive
income:
Foreign currency translation adjustments 12,042,229 872,115
Changes in fair value of an available for
sale
financial asset (1,540,000) 4,180,000
Other comprehensive
income for the year 10,502,229
5,052,115
Total comprehensive
income (loss) 239,835,399
(428,403,346)
Total profit (loss) for the year attributable
to:
Equity holders of the parent company 229,053,587 (433,731,793)
Non-controlling interests 279,583 276,332
229,333,170 (433,455,461)
Total comprehensive
income (loss) attributable to:
Equity holders of the parent company 239,555,816 (428,679,678)
Non-controlling interests 279,583 276,332
239,835,399 (428,403,346)
Consolidated Balance Sheet 31/03/13 31/03/12
ASSETS
Non-current assets
Property, plant and equipment 131,681,235 143,639,916
Goodwill 100,349,188 97,362,860
Intangible assets 944,767 880,335
Investments in associates 262,785,322
274,765,382
Available for sale financial asset 21,780,000 23,320,000
Amount due from the ultimate parent company 120,437,773 120,437,773
Spare parts 11,762,276 10,241,996
Other assets 86,283,615 82,821,846
736,024,176 753,470,108
Current assets
Inventories 37,553,337 34,639,919
Accounts receivable and prepayments 75,369,884 110,439,828
Amounts due from related parties 455,075 297,666
Bank balances, deposits and cash 596,670,610 304,089,406
710,048,906 449,466,819
TOTAL ASSETS 1,446,073,082
1,202,936,927
EQUITY AND
LIABILITIES
Equity
Share capital 600,000,000 600,000,000
Statutory reserve 120,437,773 120,437,773
Foreign currency translation reserve (7,783,973) (19,826,202)
Fair value reserve 10,780,000 12,320,000
Accumulated losses (204,678,206) (433,731,793)
Equity attributable
to equity holders of the parent
company 518,755,594
279,199,778
Non-controlling interests 2,995,808 2,920,680
Total equity 521,751,402
282,120,458
Non-current
liabilities
Long term borrowings 22,111,913 20,722,920
Obligations under finance leases - 13,490,760
Employees’ end of service benefits 20,448,079 18,794,901
Other liabilities 33,744,571 31,113,677
76,304,563 84,122,258
Current liabilities
Accounts payable and accruals 105,715,615 109,327,876
Short term borrowings and current portion of
long
term borrowings 17,404,215 23,921,760
Obligations under finance leases - 417,240
Amounts due to related parties 11,609,787 7,627,335
Provision for legal claim 713,287,500 695,400,000
848,017,117 836,694,211
Total liabilities 924,321,680 920,816,469
TOTAL EQUITY AND
LIABILITIES 1,446,073,082
1,202,936,927
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.
Established in 1963, Petrochemical Industries Company (PIC) now exports
its products, including fertilizer, feedstocks, and ammonia, to more than 50
countries worldwide.
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.60.26 |
|
UK Pound |
1 |
Rs.101.09 |
|
Euro |
1 |
Rs.83.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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.