MIRA INFORM REPORT
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Report No. : |
354857 |
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Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SAUDI BASIC
INDUSTRIES CORPORATION (SABIC) |
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Registered Office : |
Sabic Complex, Exit 8, North Ring Road, Sitteen Street, Al Maather District, P O Box: 5101 & 59090 & 42503, Riyadh 11525 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.9.1396 Hijri
(Corresponding to 6th September 1976) |
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Com. Reg. No.: |
1010010813,
Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacture of
Basic Chemicals, Intermediates, Polymers, Fertilizers and Metals. |
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No. of Employees : |
40,000 |
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 : |
Excellent |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 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, telecommuncations, 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. In 2014 the Kingdom
ran its first budget deficit since 2009, and faces budget deficits for the
foreseeable future because it requires an oil price greater than $100 per
barrel to balance its budget. Although the Kingdom can finance high deficits
for several years by drawing down its considerable foreign assets or borrowing,
it probably will begin to reduce capital spending if oil prices stay low
through the next year.
|
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 : 40,000
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)
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 : (966-11) 4012033 / 4069900 / 2258000
Facsimile : (966-11) 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
·
Highway
218 Factory
premises
Jubail 1st Industrial City
PO Box: 10040 & 11115
Al Jubail 31961
Tel: (966-13) 3477200 / 3595155 / 3452567 /
3471160
Fax: (966-13) 3411552 / 3595394 / 3452996 /
3477993
CR No. 2055003702
·
PO Box:
30382 Factory
premises
Yanbu
Tel: (966-14) 3211660
Fax: (966-14) 3211754
CR No. 4700012745
·
PO Box:
2629 Factory
premises
Dammam 31461
Tel: (966-13) 8575000
Fax: (966-13) 8578075
·
PO Box:
5027 Office
premises
Al Qassim
Tel: (966-16) 3220866
Fax: (966-16) 3220376
·
PO Box:
30204 Office
premises
Jeddah 21477
Tel: (966-12) 6352802
Fax: (966-12) 6362561
CR No. 4030204784
·
2nd
Industrial Zone Office
premises
PO Box: 5101
Riyadh 11422
Tel: (966-11) 4985555
CR No. 1010152830
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
·
Abdulaziz
Habdan Al Habdan Director
·
Mohammed
Abdullah Al Kharashi Director
·
Dr
Khaled Nahas Director
·
Abdullah
M Al Issa Director
·
Dr Saad
Bin Abdullah Bin Othman Al Kasabi Director
·
Abdullah
Hassan Al Sheikh Director
·
Yusuf
Bin Abdullah Al Bunyan Chief
Executive Officer
· 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
· Khaled Al Mana Manager
– Fertilisers
·
Yousef Al Zamel Manager
– Basic Chemicals
·
Ibrahim Al Shuweir Manager
– Research &
Technology
· Homood Al Tuwaijri Manager
– Finance
· Fahad Al Sheaibi 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 70.0%
·
Local
businessmen and private investors 24.3%
·
General
Organization for Social Insurance (GOSI) 5.7%
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
Saudi
Methacrylates Company 50.00
Arabian
Industrial Fiber Company (Ibn Rushd) 48.07
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.
·
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.
·
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
Local Clients:
·
Group
Five Pipe Saudi Company
· Arabian Sulfonates Co Ltd
Brand Names: SABIC
Operating Trend: Steady
Subject has a
workforce of approximately 40,000 employees.
FINANCIAL
DATA
Financial highlights
provided by local sources are given below:
Currency: Saudi
Riyals (SR’000)
Consolidated
Balance Sheet 31/12/14
31/12/13
%20-%20354857%2015-Dec-2015_files/image007.gif)
Consolidated
Statement of Income
Sales 188,775,373
188,986,038
Cost of sales (136,375,265)
(133,687,137)
GROSS PROFIT 52,400,108
55,298,901
Selling, general,
and administrative expenses (13,614,963)
(12,759,672)
INCOME FROM MAIN
OPERATIONS 38,785,145
42,539,229
Share in earnings
of equity-accounted investees 933,372
328,756
Financial charges
(1,611,044) (1,756,272)
Other income 1,341,191 1,354,735
INCOME BEFORE
SHARE OF NON-CONTROLLING
INTERESTS AND
ZAKAT
39,448,664 42,466,448
Share of
non-controlling interests (13,915,356)
(14,888,066)
INCOME BEFORE
ZAKAT 25,533,308
27,578,382
Zakat (2,100,000)
(2,300,000)
NET INCOME 23,433,308
25,278,382
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
National
Commercial Bank
Malaz Branch
PO Box: 42536
Riyadh 11551
Tel: (966-11) 4776450
Fax: (966-11) 4769502
·
Arab
National Bank
King Faisal Street
PO Box: 56921
Riyadh 11564
Tel: (966-11) 4029000
Fax: (966-11) 4027747
PAYMENT
HISTORY
No complaints regarding
subject’s payments have been reported.
Date of transaction July
2002 January 2005 April 2008
Credit amount 250,000 397,024 400,000
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
SAR |
1 |
Rs. 17.76 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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.