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Report No. : |
335683 |
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Report Date : |
07.08.2015 |
IDENTIFICATION DETAILS
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Name : |
EQUATE
PETROCHEMICAL CO KSCC |
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|
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Registered Office : |
Olympia Towers,
Ras Al Ard, Block 2, 8th Floor, Salem Al Mubarak Street, Salmiya,
P O Box 4733, Safat 13048 |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.12.1995 |
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Legal Form : |
Kuwaiti Shareholding Company Closed – KSCC |
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Line of Business : |
Engaged in the production
of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene |
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No of Employees : |
1,000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Kuwait |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
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 |
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 |
Company Name : EQUATE PETROCHEMICAL CO KSCC
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company Closed – KSCC
Registration Date : 4th December 1995
Trade Licence Number : 63392
Chamber Membership Number : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
Total Workforce : 1,000 (Approximately)
Activities : Production of Ethylene, Ethylene Glycol, Polyethylene and
Polypropylene
Financial Condition : Good
Payments : Regular
Operating Trend : Steady
EQUATE PETROCHEMICAL CO KSCC
Registered &
Physical Address
Building : Olympia Towers, Ras Al
Ard, Block 2, 8th Floor
Street : Salem Al Mubarak Street
Area : Salmiya
PO Box : 4733
Town : Safat 13048
Country : Kuwait
Telephone : (965) 24343666 / 24312568 / 23436661
/ 1898888
Facsimile : (965) 24312560 / 24312557 / 24312558
Email : hayatm@shb.equate.com / pemarket@equate.com
Premises
Subject operates
from a large suite of offices that are rented and located in the Central
Business Area of Safat.
Branch Office (s)
Location Description
·
PO Box:
9116 Sales
Office
Safat 13048
Tel: (965) 22445655
Fax: (965) 22415121
·
Equate
Complex Production
plant
PO Box: 9729
Ahmadi 61008
Tel: (965) 23260326 / 23725630
·
Shuaiba Administrative
Office
Tel: (965) 23260238
Fax: (965) 23260302
Name Position
·
Abdulrasool
Jafar Chairman
·
Raja
Zeidan Vice
Chairman
·
Bader
Al Sumait Director
·
Dabbous
Al Dabbous Director
·
Hamad
Al Subaie Director
·
James
Fitterling Director
·
Jasser
Al Jasser Director
·
Keith
Cleason Director
·
Luis
Antuna Director
·
Sheikh Mubarak
Al Sabah Director
·
Mohammad
Hussain President
·
Eliezer
Maldonado Vice
President
·
Mohamed
Al Benali Technical
Manager
·
Bob
Brandt Operations
Manager
·
Salah
Al Kharji Chief
Financial Officer
·
Tareq
Al Kandari Business Development
Manager
·
Abeer
Al Omar Administration
Manager
Date of Establishment : 4th
December 1995 (Production began in November 1997)
Legal Form :
Kuwaiti Shareholding
Company Closed – KSCC
Trade Licence No. : 63392
Industrial
Licence No. : 95-449-MM
Chamber Member No. : 48090
Issued Capital : KD 86,000,000
Paid up Capital : KD 86,000,000
Name of Shareholder
(s) Percentage
·
Petrochemical
Industries Company KSC (PIC) * 42.5%
Shakir Al Kazimi Building
Khalid Ibn Waleed Street
PO Box: 1084
Safat 13011
Kuwait
Tel: (965) 22448280 / 22422141
Fax: (965) 22405791 / 22445913 / 23261544
·
The Dow
Chemical Company 42.5%
United States of America
·
Bubiyan
Petrochemicals Company 9.0%
·
Qurain Petrochemical
Industries Company 6.0%
Subject is partly owned by Petrochemical Industries Company KSC (PIC)
which in turn is wholly owned by 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
Oil Co (KOC) 100%
PO Box: 9758
Ahmadi 61008
Tel:
(965) 3989111 / 3984111
Fax: (965) 3982661
·
Kuwait
National Petroleum Co (KNPC) 100%
PO Box: 70
Safat 13001
Tel: (965) 2420121 / 2449401
Fax: (965) 2442954
·
Kuwait
Oil Tanker Co (KOTC) 100%
PO Box: 810
Safat 13009
Tel: (965) 2455455
Fax: (965) 2445907
·
Kuwait
Foreign Petroleum Exploration Co (KUFPEC) 100%
PO Box: 5291
Safat 13053
Tel: (965) 2421677
Fax: (965) 2437985
·
Kuwait
Santa Fe Braun for Engineering & Petroleum Enterprises KSC 100%
PO Box: 9282
Ahmadi 61003
Tel: (965) 3985011
Fax: (965) 3981030
·
Kuwait Aviation
Fuelling Co KSC (KAFCO) 100%
PO Box: 1654
Safat 13017
Tel: (965) 4330507 / 4330483
Fax: (965) 4330475
·
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
·
Arabian
Oil Company 10%
Activities:
Engaged in the production of Ethylene, Ethylene Glycol, Polyethylene and Polypropylene. Production began at the US$ 2 billion Shuaiba complex in November 1997.
Subject has been awarded the ISO 9002 certificate for all its operating units and also received the ISO 14001 in 2004.
The company is going to build a new ethylene and derivatives
complex in Shuaiba, named Olefins II project. Fluor Corporation has signed a
MoU to provide engineering, procurement and construction management services
for the utilities and infrastructure portion of the project. This scope is in
addition to the programme management contract it was awarded in 2004 to perform
overall management consultancy and front-end engineering services.
The billion-plus-dollar project is located approximately 40
km, south of Kuwait City in Shuaiba. Olefins II will include construction
of an 850,000-tonnes-per-year (tpy) cracker, a 600,000 tpy ethylene glycol
unit, a 450,000 tpy ethyl benzene/styrene monomer unit and a debottleneck
expansion of an additional 225,000 tpy of polyethylene capacity at the existing
complex. Olefins II will be similar in volume to the first project and,
consequently, the completed facility will double the capacity at the existing
olefins complex.
Subject has contributed to the growth of the local plastics industry by over 400% from 1998 to 2014, and has supported Kuwaiti producers of plastics to launch export operations of their products to several countries around the world. Moreover, the subject has introduced several sustainability-based initiatives within and outside Kuwait by establishing sustainable partnerships with many governmental, private and civic organizations in industrial, medical, educational, health, professional development, safety, health and other fields.
Production
Capacity: Ethylene 850,000
tonnes per annum
Ethylene
Glycol 550,000 tonnes per
annum
Propylene 600,000 tonnes per annum
Import
Countries: Europe and the
United States of America.
Operating Trend: Steady
Subject has a workforce
of approximately 1,000 employees.
Financial
highlights provided by local sources are given below:
Currency: United
States Dollar (US$)
Year Ending
31/12/12: Year Ending
31/12/13: Year Ending
31/12/14:
Total Revenue US$ 2,600,000,000 US$ 2,880,000,000 US$ 2,600,000,000
Net Profit US$ 1,090,000,000 US$ 1,245,000,000 US$ 1,040,000,000
Local sources
consider subject’s financial condition to be Good.
·
National
Bank of Kuwait SAK
Main Branch
Ahmadi
Tel: (965) 23981188 / 23981189
Fax: (965) 23985643
·
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
Regular
Amount overdue 0 0 0
Payment terms 90
days 90
days 90
days
Payment Method Letters
of Credit Letters
of Credit Letters
of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Pounds
Sterling Pounds
Sterling Pounds
Sterling
Equate
Petrochemical Co KSC (C) was incorporated in 1995 with production beginning in
1997. It is the largest petrochemical project in Kuwait and is 42.5% owned by
the well known Petrochemical Industries Company KSC (PIC).
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.63.76 |
|
|
1 |
Rs.99.60 |
|
Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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 |
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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.