MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARABIA SAIPEM CO LTD

 

 

Registered Office :

Al Hugayat Sky Line Building, 17th Floor, King Fahad Abdulaziz Road, Dammam-Al Khobar Highway, PO Box 31770, Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

22.12.1976

 

 

Com. Reg. No.:

2051002660

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the provision of offshore and onshore gas and oil drilling and construction projects.

 

 

No of Employees :

439

 

 

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 ARABIA SAIPEM CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 22nd December 1976

Commercial Registration Number           : 2051002660, Al Khobar

Chamber Membership Number               : 439

Issued Capital                                       : SR 5,000,000

Paid up Capital                                     : SR 5,000,000

Total Workforce                                     : 3,000

Activities                                               : Providers of offshore and onshore gas and oil drilling and construction

                                                                  projects

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Wagdy Al Assad, Legal Officer

 

 

 

COMPANY NAME

 

SAUDI ARABIA SAIPEM CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Al Hugayat Sky Line Building, 17th Floor

Street               : King Fahad Abdulaziz Road, Dammam-Al Khobar Highway

PO Box            : 31770

Town                : Al Khobar 31952

Country             : Saudi Arabia

Telephone         : (966-13) 8116111 / 8828737

Facsimile          : (966-13) 8493799

Email                : khalid.al-otaibi@saipem.com

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Al Khobar.

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Romano Berganzi                                                                                  Chief Executive Officer

 

Luca Pretari                                                                                           Operations Manager

 

Abdul Majeed Zubair                                                                             Accounts Manager

 

Khalid Baraz Al Otaibi                                                                            Administration Manager

 

Khathleen Mastan                                                                                  Human Resources Manager

 

Wagdy Al Assad                                                                                   Legal Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd December 1976

 

Legal Form      : Limited Liability Company

 

Commercial Reg. No.   : 2051002660, Al Khobar

 

Chamber Member No.  : 439

 

Issued Capital              : SR 5,000,000

 

Paid up Capital            : SR 5,000,000

 

Name of Partner (s)                                                      

 

Saipem International BV

Netherlands

 

Prince Abdullah Al Saud

 

 

AFFILIATED COMPANIES

 

Snam Projetti Saudi Arabia Co Ltd

Al Khobar

 

 

OPERATIONS

 

Activities: Engaged in the provision of offshore and onshore gas and oil drilling and construction projects.

 

Import Countries: Europe and the Far East

 

Current Contracts:

 

Saipem has been awarded by Saudi Aramco three contracts in Saudi Arabia for onshore engineering and construction activities.

 

Two EPC contracts relevant to the Jazan Integrated Gasification Combined Cycle project are to be located near the city of Jizan, in southwestern Saudi Arabia.

 

Package 1 contract comprises the Gasification Unit, the Soot/Ash Removal Unit, the Acid Gas Removal and the Hydrogen Recovery Units. Package 2 contract includes six Sulphur Recovery Unit (SRU) Trains and relevant Storage Facilities.

 

The scopes of work of both packages include engineering, procurement, construction, pre-commissioning, assistance to commissioning and performance tests of the concerned facilities. These two packages are part of the current Saudi Aramco development of the largest gasifier-based power facility built in the world, adjacent to its new Jazan Refinery & Terminal project. The power plant will be based on gasification technology and the primary feedstock to the power plant will be the vacuum residue produced in the refinery as well as high sulfur fuel oil. The power plant will serve the refinery power needs and export a large amount of power to the national grid.

As part of the Jazan Economic City, Saudi Aramco’s Jazan Refinery and Terminal Project is part of its strategic intent to facilitate a diversified and sustainable expansion of Saudi Arabia’s economy and enable a globally competitive and vibrant Saudi energy sector. The Jazan Refinery and Terminal Project itself will provide more than 1,000 direct jobs in addition to 4,000 indirect jobs.


Furthermore, Saudi Aramco has awarded to Saipem an EPC contract for the Loops 4 & 5 of the Shedgum-Yanbu Gas Pipeline, linking Shedgum to Yanbu.


The scope of work of this third contract includes detailed design, engineering, procurement, installation, commissioning and start up assistance for two pipelines, which will be completed in the second half of 2017.

 

Subject has a workforce of approximately 3,000 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

 

National Commercial Bank

PO Box: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

 

 

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 :

KAR

 

 

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