MIRA INFORM REPORT

 

 

Report Date :

06.05.2014

 

IDENTIFICATION DETAILS

 

Name :

FARABI PETROCHEMICALS

 

 

Formerly Known As :

GULF FARABI PETROCHEMICAL COMPANY LTD

 

 

Registered Office :

Jubail Industrial City, P O Box 11763, Jubail 31961

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.03.2002

 

 

Com. Reg. No.:

2055005152, Jubail

 

 

Legal Form :

Closed Shareholding Company

 

 

Line of Business :

manufacturer of 120,000 MT of normal Paraffin and 70,000 MT of Linear Alkyl Benzene

 

 

No. of Employees :

170

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No Complaints 

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

Saudi Arabia ECONOMIC OVERVIEW

 

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 17% 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. Over 5 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 2005. 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

 

SUMMARY

 

Company Name                                    : FARABI PETROCHEMICALS

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Closed Shareholding Company

Registration Date                                  : 26th March 2002

Commercial Registration Number           : 2055005152, Jubail

Chamber Membership Number               : 50076

Issued Capital                                       : SR 500,000,000

Paid up Capital                                     : SR 500,000,000

Total Workforce                         : 170

Activities                                               : Manufacture of normal Paraffin and Linear Alkyl Benzene.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Ahmed Al Moubaini, Treasury Manager

 

 

 

COMPANY NAME

 

FARABI PETROCHEMICALS

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Jubail Industrial City

PO Box            : 11763

Town                : Jubail 31961

Country : Saudi Arabia

 

Telephone         : (966-3) 3565000 / 3565012

Facsimile          : (966-3) 3565008 / 3565010

Email                : info@farabipc.com / nmh@farabipc.com

 

Premises

Subject operates from a large suite of offices and a production plant that are owned and located in the Industrial Area of Jubail.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Al Wadey                                                                         President

 

·       Abdullah Shujaa Al Shareef                                                               General Manager

 

·       Sulaiman K Al Homaidan                                                                   Purchasing Manager

 

·       Abdulrahman Z Al Garni                                                                    Human Resources Manager

 

·       Mounaguru Samy Periyanayaham                                                      Marketing Manager

 

·       Mohamed Nour El Shareef                                                                Accounting Manager

 

·       Ahmed Al Moubaini                                                                          Treasury Manager

 

·       Nawas Al Hozami                                                                              Budgeting Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12/01/1423 Hijri (corresponding to 26th March 2002)

 

History                         : Subject was originally established in 2002 under the name of “Gulf Farabi Petrochemical Company Ltd”, however in September 2010 it changed its name to the current style of“Farabi Petrochemicals”.

 

Legal Form                  : Closed Shareholding Company

 

Commercial Reg. No.   : 2055005152, Jubail

 

Chamber Member No.  : 50076

 

Issued Capital              : SR 500,000,000

 

Paid up Capital            : SR 500,000,000

 

Name of Partner (s)

 

·       Mada Investment Company for Industry & Trade

 

·       Prince Sultan Bin Mohammed Bin Saud Al Kabeer

 

·       Abdul Latif & Mohamed Al Fozan Co

 

·       Sara Development

 

·       Sheikh Saleh Nasser A Al Sorayai

 

·       Muhammed & Abdullah Al Subeaei Investment Company

 

·       Sheikh Omar Kassim Alesayi

 

·       Sheikh Abdulaziz Sulaiman Al Rajhi

 

 

AFFILIATED COMPANIES

 

·       Arnon Plastic Industries Company

Saudi Arabia

 

·       Building and Construction Company

Saudi Arabia

 

·       Al Oula Development Company

Saudi Arabia

 

·       Injaz Projects

Saudi Arabia

 

·       ARC Engineering Consultants

Saudi Arabia

 

·       Dhahran International Exhibitions Company

Saudi Arabia

 

·       MADAR Building Material – Jordan

Jordan

 

·       MADAR Building Material – Sudan

Sudan

 

·       Projects and Supplies Company

Saudi Arabia

 

·       United Transformers Electric Company

Saudi Arabia

 

·       Amwal Al Khaleej Commercial Investment Company

Saudi Arabia

 

·       United Electronics Company

Saudi Arabia

 

·       Madar Emirates for Building Materials Co LLC

United Arab Emirates

 

·       Madar Holding FZCO

     United Arab Emirates

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of 120,000 MT of normal Paraffin and 70,000 MT of Linear Alkyl Benzene.

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 170 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/11:               Year Ending 31/12/12:

 

Total Revenue                           SR 1,355,000,000                      SR 1,470,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Ahmed Al Moubaini, Treasury Manager

 

 

BANKERS

 

·       Al Rajhi Banking & Investment Corporation

Al Amir Mohamed Street

PO Box: 1362

Al Khobar 31952

Tel: (966-3) 8640019 / 8641234 / 8649468

Fax: (966-3) 8649482

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.60.05

UK Pound

1

Rs.101.32

Euro

1

Rs.83.34

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

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

--

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.