MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT OIL COMPANY KSC (KOC)

 

 

Registered Office :

Laila Tower, Block 49, Building No. 35 5614, P O Box 9758, Ahmadi 61008, Salmiya 22067

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.03.2012

 

 

Year of Establishments :

1934

 

 

Legal Form :

Kuwaiti Shareholding Company

 

 

Line of Business :

·         engaged in the exploration, drilling, production and transportation of hydrocarbon oil and gas. It is also engaged in the storage of crude oil.

·         Subject also engaged in exploration, drilling and production of oil and gas located in the Saudi Kuwait divided zone of Wafra under a joint operations agreement with Saudi Arabian Texaco Inc.

·         Subject also provides marine services to KNPC’s Mina Al-Ahmadi and Mina Abdulla refineries and The oil pier at Mina Al-Shuaiba

 

 

No of Employees :

7,000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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)

Kuwait

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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


SUMMARY

 

Company Name                                    : KUWAIT OIL COMPANY KSC (KOC)

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Company – KSC

Start Date                                             : 1934

Registration Date                                  : 11th April 1960

Chamber Membership Number               : 1302

Issued Capital                                       : KD 30,188,000

Paid up Capital                                     : KD 30,188,000

Total Workforce                                     : 7,000

Activities                                               : Exploration, drilling, production and transportation of hydrocarbon oil

and gas.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 


COMPANY NAME

 

KUWAIT OIL COMPANY KSC (KOC)

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Laila Tower, Block 49, Building No. 35 5614

PO Box            : 9758, Ahmadi 61008

Town                : Salmiya 22067

Country             : Kuwait

Telephone         : (965) 23989111 / 23865203

Facsimile          : (965) 23983661

Email                : kocinfo@kockw.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Salmiya.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Nabil Buresli                                                                                     Chairman

 

·       Anwar Bin Salamh                                                                             Vice Chairman

 

·       Hashem Sayed Hashem                                                                    Director

 

·       Ali Bin Sabt                                                                                      Director

 

·       Mutlaq Al Azmi                                                                                 Director

 

·       Wafa Al Zaabi                                                                                  Director

 

·       Abdullah Baronn                                                                               Director

 

·       Saud Al Shammari                                                                            Director

 

·       Hassan Abdulla Ahmed Al Kandari                                                    Human Resources Manager

 

·       Sami Juhaim Awadh Al Juhaim                                                          Public Relations Manager

 

·       Suweileh Mohammed Musleh Al Mutairi                                              Finance Manager

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was originally established in 1934, however it was registered on 11th April 1960.

 

Legal Form                  : Kuwaiti Shareholding Company – KSC

 

Chamber Member No.  : 1302

 

Issued Capital              : KD 30,188,000

 

Paid up Capital            : KD 30,188,000

 

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.

 

 

AFFILIATED COMPANIES

 

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 National Petroleum Company KSC (KNPC)                                      100%

Fahad Al Salem Street

PO Box: 70

Safat 13001

       Tel: (965) 22420121 / 22449400 / 22449401

Fax: (965) 22433839

 

·       Petrochemical Industries Company KSC (PIC)                                            100%

Shakir Al Kazimi Building

Khalid Ibn Waleed Street

PO Box: 1084 / 9116, Ahmadi

Safat 13011

Tel: (965) 22448280 / 22422141

Fax: (965) 22405791 / 22445913 / 23261544

 

·       Kuwait Oil Tanker Co (KOTC)                                                                     100%

PO Box: 810

Safat 13009

Tel: (965) 22455455

Fax: (965) 22445907

 

·       Kuwait Foreign Petroleum Exploration Co (KUFPEC)                                  100%

PO Box: 5291

Safat 13053

Tel: (965) 22421677

Fax: (965) 22437985

 

·       Kuwait Santa Fe Braun for Engineering & Petroleum Enterprises KSC         100%

PO Box: 9282

Ahmadi 61003

Tel: (965) 23985011

Fax: (965) 23981030

 

·       Kuwait Aviation Fuelling Co KSC (KAFCO)                                                 100%

PO Box: 1654

Safat 13017

Tel: (965) 24330507 / 24330483

Fax: (965) 24330475

    

·       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

 

·       Boubyan Petrochemical Co                                                                         10%

 

·       Arabian Oil Company                                                                                  10%

 

 

OPERATIONS

 

Activities: Kuwait Oil Company KSC (KOC) is engaged in the exploration, drilling, production and transportation of hydrocarbon oil and gas. It is also engaged in the storage of crude oil.

 

     Crude oil is extracted from reserves in Kuwait and on the instructions of KPC is exported as blended crude

     or passed to Kuwait National Petroleum Company KSC (KNPC) for further processing or to the Ministry of

     Electricity & Water for power generation. Gas produced as part of the exploration process is treated

     similarly.

 

     KOC also engaged in exploration, drilling and production of oil and gas located in the Saudi Kuwait divided

     zone of Wafra under a joint operations agreement with Saudi Arabian Texaco Inc.

 

     The Company owns no oil and gas reserves nor any oil and gas inventory other than those required for

     operations.

 

     The Company also provides marine services to KNPC’s Mina Al-Ahmadi and Mina Abdulla refineries and

     The oil pier at Mina Al-Shuaiba. KNPC is charged for direct and certain indirect costs relating to these

     activities. The Company charges Group companies for medical and other services provided to their

     employees.

 

Export Countries : Subject exports worldwide, but particularly to China and South East Asia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 7,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD 000’s)

 

Balance Sheet                                                                          31/03/12                        31/03/11

 

Assets

Property, plant and equipment:

Crude oil and general purpose                                                   3,187,003                      2,314,679

Gas collection and transmission                                                             10,595                          12,478

Drilling and exploration                                                              18,880                          34,593

Export operations                                                                     217                               253

Mobile plant                                                                              757                               1,238

Capital work in progress                                                            1,653,214                      1,851,802

Total property, plant and equipment                                           4,870,666                      4,215,043

Intangible assets                                                                       14,937                          17,738

Construction inventories                                                            134,295                         175,531

Receivable from Parent Company                                              15,094                          15,094

Total non-current assets                                                             5,034,992                      4,423,406

Consumable inventories                                                             84,442                          81,103

Advances and other receivables                                                 328,162                         290,584

Amounts due from group companies                                         50,707                          59,487

Cash and cash equivalents                                                        2,091                            6,544

Total current assets                                                                   465,402                         437,718

Total assets                                                                              5,500,394                      4,861,124

Equity and liabilities

Equity

Share capital – authorized, issued and fully paid shares

of KD 1 each                                                                            30,188                          30,188

Shareholder’s current account                                                    2,114,791                      2,114,791

Statutory reserve                                                                       15,094                          15,094

Total equity                                                                               2,160,073                      2,160,073

Liabilities

Due to Parent Company, net                                                      1,474,018                      1,343,940

Post-employment benefits                                                         152,758                         114,439

Non-current liabilities                                                                 1,626,776                      1,458,379

Accounts payable and other liabilities                                         538,066                         451,574

Amounts due to group companies                                             2,165                            1,392

Dividend payable                                                                      1,173,314                      789,706

Current liabilities                                                                        1,713,545                      1,242,672

Total liabilities                                                                           3,340,321                      2,701,051

Total equity and liabilities                                                           5,500,394                      4,861,124

 

Statement of Income

 

Revenue:

Revenue (net of royalty, levy and marketing fees)                       5,350,316                      3,698,527

Operating cost (cost of production):

Contract services                                                                      (380,575)                       (286,650)

Employee cost                                                                          (403,187)                       (282,623)

Material cost                                                                             (45,308)                        (38,111)

Depreciation and amortization                                                    (343,240)                       (295,023)

Total operating cost                                                                  (1,172,310)                    (902,407)

Other operating income                                                                         13,193                          15,028

Recoverable costs                                                                    101,974                         65,997

Cost of production                                                                    (1,057,143)                    (821,382)

Deferred cost recognized                                                          (27,360)                        (22,278)

Deferred cost                                                                            30,488                          27,360

Total cost of sales                                                                   (1,054,015)                    (816,300)

Gross profit                                                                              4,296,301                      2,882,227

General and administrative expenses                                          (105,969)                       (61,921)

Net operating profit                                                                   4,190,332                      2,820,306

Interest income                                                                          117                               113

Directors’ remuneration                                                              (42)                               (42)

Net profit before contribution to shareholder                               4,190,407                      2,820,377

Contribution to the shareholder                                                  (3,017,093)                    (2,030,671)

Net profit                                                                                  1,173,314                      789,706

Total comprehensive income for the year (transferable

to Parent Company)                                                                  1,173,314                      789,706

 

Please note that figures for the years ending 31st March 2013 and 31st March 2014 were not made available.

 

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

 

 

BANKERS

 

·       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

 

·       National Bank of Kuwait SAK

Ahmadi

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

·       Commercial Bank of Kuwait

     East Ahmadi

     Tel: (965) 23980422

 

 

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.61.87

UK Pound

1

Rs.97.23

Euro

1

Rs.77.21

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

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.