MIRA INFORM REPORT

 

 

Report Date :

14.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

 

 

Registered Office :

Old Mina Road, Aramco Industrial Area, PO Box 5518, Jeddah 21432

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

28.08.1976

 

 

Com. Reg. No.:

4030010447

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the production of lubricating base oils.

 

 

No of Employees :

1,100

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 16% 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 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 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                                    : SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 28th August 1976

Commercial Registration Number           : 4030010447, Jeddah

Chamber Membership Number               : 1150

Issued Capital                                       : SR 441,000,000

Paid up Capital                                     : SR 441,000,000

Total Workforce                                     : 1,100

Activities                                               : Producers of lubricating base oils.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Abdul Mohsin Al Dulaijan, Finance Manager

 

 


COMPANY NAME

 

SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Old Mina Road

Area                 : Aramco Industrial Area

PO Box            : 5518

Town                : Jeddah 21432

Country             : Saudi Arabia

 

Telephone         : (966-2) 2296555 / 2296677 / 2296556 / 2296514 / 2296465 / 2296464 / 2296462 / 22996544

Facsimile          : (966-2) 4275026

Email                : alsaudn@luberef.com / bazuhairo@luberef.com / aldulaijana@lubrefc.com

                          alkharboushz@lubref.com

 

Premises

 

Subject operates from a large suite of offices, warehousing and an oil refinery that are owned and located in the Industrial Area of Jeddah.

 

Branch Offices

 

Location                                                                                   Description

 

PO Box: 30122                                                                          Oil refinery

Yanbu

Tel: (966-4) 3252777

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Hassan Gamman Al Zahrani                                                       Chief Executive Officer & President

 

Prince Nawaf Bin Saud Al Saudi                                                 Vice President

 

Zayad Al Kharboosh                                                                  Human Resources Manager

 

Mohamed Al Harbi                                                                     Commercial Manager

 

Saeed Ba Duraish                                                                     Refinery Manager

 

Abdul Mohsin Al Dulaijan                                                           Finance Manager

 

Hatim Qatani                                                                             Accountant

 

Khalid Al Zeali                                                                           Administration Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 03/09/1396 Hijri (corresponding to 28th August 1976)

 

History : Subject began in 1976 under the name “Saudi Aramco Lubricating Oil Refining Co

  (LUBREF)”. However in December 2013 it changed its name to “Saudi Aramco Base Oil

  Company (LUBREF)”.

 

Legal Form      : Limited Liability Company

 

Commercial Reg. No.   : 4030010447, Jeddah

 

Chamber Member No.  : 1150

 

Issued Capital              : SR 441,000,000

 

Paid up Capital            : SR 441,000,000

 

Name of Shareholder (s)                                                      Percentage

 

Saudi Arabian Oil Company (Saudi Aramco)                               70%

 

Jadwa Industrial Investment Co (JIIC)                              30%

 

In November 2007, Jadwa Industrial Investment Co (JIIC) of Saudi Arabia reached an agreement with ExxonMobil to acquire its interest in Luberef.

 

 

OPERATIONS

 

Activities: Engaged in the production of lubricating base oils.

 

The sole in-Kingdom producer of lubricating base oils, Luberef owns and operates refineries in Jiddah (Luberef I) and Yanbu' (Luberef II). The four base oils it produces are used in every lubricant brand blended in Saudi Arabia, including Petromin Oils, Toyota, Castrol, Mobil, Shell, Fuchs, Caltex and Gulf.

 

About 60 percent of Luberef’s production is consumed locally. The balance is exported to GCC countries, Eastern Mediterranean and Red Sea countries, East & South Africa and the Indian subcontinent.

 

Luberef, established in 1976, produces around 550,000 tonnes per year of oil lubricants at its two refineries on the kingdom's Red Sea coast at Jeddah and Yanbu.

As a result of the expansion in the Yanbu refinery, which now has a capacity of 280,000 tpy of oil lubricants, a type of base oil that is new to the Gulf region will be produced.

U.S. Jacobs Engineering conducted front-end engineering and design (FEED) for the expansion of the refinery, whose capacity will double once the project is completed in 2015.

 

Import Countries: United States of America and Europe.

 

Subject has a workforce of approximately 1,100 employees.

 

 

FINANCIAL DATA

 

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

Saudi American Bank

Andalous Street

PO Box: 490

Jeddah 21411

Tel: (966-2) 6533555

 

 

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.61.56

UK Pound

1

Rs.97.10

Euro

1

Rs.76.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 


 

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%)

 

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