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MIRA INFORM REPORT
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Report Date : |
16.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SAUDI BASIC INDUSTRIES CORPORATION (SABIC) |
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Registered Office : |
Sabic Complex, Exit 8, |
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Country : |
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Financials (as on) : |
31.12.2012 (Consolidated) |
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Date of Incorporation : |
06.09.1976 |
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Com. Reg. No.: |
1010010813, |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacturer of Basic Chemicals, Intermediates, Polymers,
Fertilizers and metals |
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No. of Employees : |
16,000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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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Saudi Arabia |
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 |
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 : SAUDI BASIC INDUSTRIES CORPORATION (SABIC)
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 6th September 1976
Commercial Registration Number : 1010010813, Riyadh
Membership Number : 70000
Issued Capital : SR 30,000,000,000
Paid up Capital : SR 30,000,000,000
Total Workforce : 16,000
Activities : Manufacture of basic chemicals, intermediates, polymers, fertilizers and
metals
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Mohamed Nasser Al Ghamdi, Administration Manager
COMPANY NAME
SAUDI BASIC
INDUSTRIES CORPORATION (SABIC)
company ADDRESS
Registered &
Physical Address
Location : Sabic
Complex, Exit 8, North Ring Road
Street : Sitteen
Street
Area : Al Maather
District
PO Box : 5101 &
59090 & 42503
Town : Riyadh 11525
Country : Saudi Arabia
Telephone : (966-1) 4012033
/ 4069900 / 2258000
Facsimile : (966-1)
4012045 / 4013831 / 2259000
Email : info@sabic.com
/ dalaanas@sabic.com / ghamdinm@sabic.com
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Riyadh.
Branch Office (s)
Location Description
· PO Box: 10040
& 11115 Factory
premises
Jubail Industrial
City
Al Jubail 31961
Tel: (966-3)
3477200 / 3595155 / 3452567
Fax: (966-3)
3411552 / 3595394 / 3452996
· PO Box: 30382 Factory
premises
Yanbu
Tel: (966-4)
3211660
Fax: (966-4)
3211754
· PO Box: 2629 Factory
premises
Dammam 31461
Tel: (966-3)
8575000
Fax: (966-3)
8578075
· PO Box: 5027 Office
premises
Al Qassim
Tel: (966-6)
3220866
Fax: (966-6)
3220376
· PO Box: 30204 Office
premises
Jeddah 21477
Tel: (966-2)
6352802
Fax: (966-2)
6362561
KEY PRINCIPALS
Name Position
· HH Prince Saud Bin
Thunayan Al Saud Chairman
· Mohamed
Bin Mohamed Al Mady Vice
Chairman & Chief Executive Officer
· Dr Abdulrahman
Abdullah Al Humaidi Director
· Bander Abdulaziz
Al Wael Director
· Abdullah
Abdulrahman Al Homoodi Director
· Mohamed S
Abanumay Director
· Abdullah M Al Issa Director
· Abdullah
Nojaidi Manager
– Petrochemicals
· Abdulrahman
Al Ubaid Manager
– Polyolefins
· Fahad Al
Sheaibi Manager
– PVC / Polyester
· Khaled
Al Mana Manager
– Intermediate Chemicals
· Mohammad
Al Jaber Manager
– Metals
· Nasser
Al Sayyari Manager
– Fertilisers
· Yousef
Al Zamel Manager
– Basic Chemicals
· Ibrahim
Al Shuweir Manager
– Research & Technology
· Homood
Al Tuwaijri Manager
– Finance
·
Mohammad Al Bat'hi Manager
– Human Resources
·
M S Humaid Senior
Planning Manager
· Abdulrahman Al
Dalaan Procurement
Manager
·
Mohamed Nasser Al Ghamdi Administration
Manager
·
Naveed Sheikh Fareed Company
Secretary
LEGAL FORM & OWNERS
Date of
Establishment : 13/9/1396 Hijri
(corresponding to 6th September 1976)
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1010010813, Riyadh
Membership No. : 70000
Issued Capital : SR 30,000,000,000
Paid up Capital : SR 30,000,000,000
Name of Shareholder
(s) Percentage
· Government of
Saudi Arabia 70%
· Local businessmen
and private investors 30%
AFFILIATED COMPANIES
Name Shareholding
%
Arabian Petrochemical Company and subsidiary (Petrokemya)
100.00
Saudi Iron and Steel Company (Hadeed)
100.00
SABIC Industrial Investments Company and subsidiaries (SIIC)
100.00
SABIC Luxembourg S.à.r.l. and subsidiaries 100.00
SABIC Sukuk Company 100.00
SABIC Industrial Catalyst Company 100.00
Saudi European Petrochemical Company (Ibn Zahr) 80.00
Jubail United Petrochemical Company (United) 75.00
National Chemical Fertilizer Company (Ibn Al-Baytar) 71.50
National Industrial Gases Company (Gas) 70.00
Yanbu National Petrochemical Company 51.95
Saudi Methanol Company (Ar-Razi) 50.00
Al-Jubail Fertilizer Company (Al-Bayroni) 50.00
Saudi Yanbu Petrochemical Company (Yanpet) 50.00
National Methanol Company (Ibn Sina) 50.00
Saudi Petrochemical Company (Sadaf) 50.00
Eastern Petrochemical Company (Sharq)
50.00
Al-Jubail Petrochemical Company (Kemya) 50.00
Saudi Japanese Acrylonitrile Company 50.00
Arabian Industrial Fiber Company (Ibn Rushd) 47.26
Saudi Arabian Fertilizer Company (Safco) 42.99
Saudi Kayan Petrochemical Company 35.00
OPERATIONS
Activities: Engaged in the manufacture of basic chemicals, intermediates, polymers,
fertilizers and metals.
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Basic Chemicals - SABIC’s basic chemicals include
methanol, ethylene, propylene, benzene, xylene, MTBE (Methyl Tertiary Butyl
Ether), Styrene, CIE (Crude Industrial Ethanol), butadiene and butene-1.
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Intermediates - Intermediates chemicals such as EG,
EDC, VCM, 2-EH, Caustic Soda and DOP are ingredients used by the petrochemical
industry to manufacture other products. Intermediates chemicals are produced
for use by SABIC and for export to industries around the world using basic
chemicals as raw materials. The intermediates sector also produces a range of
industrial gases - Oxygen, Nitrogen, Argon and Krypton-Xenon.
·
Polymers - SABIC is one of the largest exporters of
plastics in the world with a production capacity of nearly 4 million tons. They
produce three different polyethylenes; polypropylene, PVC and general purpose,
high impact and expandable polystyrenes. They produce polyester fibers and
filaments, textile grade chips and PET packaging resins and also melamine.
·
Fertilizers - SABIC's fertilizer group is dedicated
to helping the worldwide agriculture industry produce higher yields of quality
crops to feed an ever-growing global population. The range of products
includes, ammonia and urea, as well as compound, phosphate and liquid
fertilizers. SABIC is now the world's largest exporter of urea. SABIC’s
nitrogen, phosphate and compound fertilizers are used in an increasing number
of applications to improve food security worldwide. In Saudi Arabia, SABIC
fertilizers provide the essential nutrients needed to achieve impressive crop
yields from farm acreage that until recently had been arid desert.
·
Metals - The Metals Group is a major part of
SABIC's diversified manufacturing portfolio in Saudi Arabia. Today, its wholly
owned Saudi Iron & Steel Co (Hadeed) affiliate is the leading steel maker
in the Gulf region. Since 1983, Hadeed has produced long steel products for the
Kingdom's construction industry. Its output now includes flat, hot and cold
rolled steel for expanding Saudi and regional engineering and manufacturing
industries. The Metals Group also manages large offshore aluminium manufacturing
shareholdings in Bahrain, as well as the sales and marketing of ferro-alloys
produced in Saudi Arabia.
Sabic Supply Management Organization Ltd is
not a separate legal entity. It is a division of the subject that is
responsible for internal issues relating to
purchasing, account management and local business development.
Import & Export Countries: Worldwide
Brand Names: SABIC
Operating Trend: Steady
Subject has a workforce of approximately 16,000 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR’000)
Consolidated Balance Sheet 31/12/12 31/12/11
%20-%20286530%2016-Sep-2014_files/image003.gif)
Consolidated Statement of Income
For the three month
For the year ending period ending
31/12/12 31/12/11 31/12/12 31/12/11
%20-%20286530%2016-Sep-2014_files/image005.gif)
Local sources consider subject’s financial condition to be Good.
BANKERS
·
National Commercial Bank
Malaz Branch
PO Box: 42536
Riyadh 11551
Tel: (966-1)
4776450
Fax: (966-1)
4769502
·
Arab National Bank
King Faisal Street
PO Box: 56921
Riyadh 11564
Tel: (966-1)
4029000
Fax: (966-1) 4027747
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
Date of
transaction July 2002 January 2005 April 2008
Amount overdue 0 0 0
Payment terms 60
days 60 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Canadian
Dollars Canadian Dollars Euros
GENERAL COMMENTS
Established in 1976, SABIC is widely regarded as the largest
manufacturing company in the Middle East and is engaged in the manufacture of
basic chemicals, intermediates, polymers, fertilizers and metals.
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.60.99 |
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1 |
Rs.99.09 |
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Euro |
1 |
Rs.79.03 |
INFORMATION DETAILS
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Report Prepared
by : |
NIS |
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.