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Report Date : |
12.08.2014 |
IDENTIFICATION DETAILS
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Name : |
EQUATE PETROCHEMICAL CO KSCC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
04.12.1995 |
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Legal Form : |
Kuwaiti Shareholding Company Closed |
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Line of Business : |
Subject is engaged in the production of Ethylene, Ethylene Glycol,
Polyethylene and Polypropylene. |
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No. of Employees : |
1000 |
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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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.
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Source
: CIA |
SUMMARY
Company Name :
EQUATE PETROCHEMICAL CO KSCC
Country of Origin :
Kuwait
Legal Form :
Kuwaiti Shareholding Company Closed – KSCC
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
COMPANY NAME
EQUATE PETROCHEMICAL CO KSCC
ADDRESS
Registered &
Physical Address
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
Premises
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
KEY PRINCIPALS
Name Position
Abdulrasool Jafar Chairman
Raja Zeidan Vice
Chairman
Bader Al Sumait Director
Dabbous Al Dabbous Director
Hamad Al Subaie Director
James Fitterling Director
Jasser Al Jasser Director
Keith Cleason Director
Luis Antuna Director
Sheikh Mubarak Al Sabah Director
Mohammad Hussain President
Eliezer Maldonado Vice
President
Mohamed Al Benali Technical
Manager
Bob Brandt Operations
Manager
Salah Al Kharji Chief
Financial Officer
Tareq Al Kandari Business
Development Manager
Abeer Al Omar Administration
Manager
LEGAL FORM & OWNERS
Date of Establishment : 4th
December 1995 (Production began in November 1997)
Legal Form :
Kuwaiti
Shareholding Company Closed – KSCC
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
Name of Shareholder
(s) Percentage
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%
AFFILIATED COMPANIES
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
PO Box: 5291
Safat 13053
Tel: (965) 2421677
Fax: (965) 2437985
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%
OPERATIONS
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 DATA
Financial highlights provided by local sources are given below:
Currency: United States Dollar (US$)
Year Ending 31/12/11: Year Ending 31/12/12: Year Ending 31/12/13:
Total Sales US$
2,500,000,000 US$
2,600,000,000 US$
2,880,000,000
Net Profit US$
1,050,000,000 US$
1,090,000,000 US$
1,245,000,000
Local sources consider subject’s financial condition to be Good.
BANKERS
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
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction September
2004 March 2005 March 2006
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
GENERAL COMMENTS
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.12 |
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1 |
Rs.102.54 |
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Euro |
1 |
Rs.81.87 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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.