|
Report No. : |
306844 |
|
Report Date : |
04.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
SAUDI BASIC INDUSTRIES CORPORATION (SABIC) |
|
|
|
|
Registered Office : |
Sabic Complex, Exit
8, North Ring Road, Sitteen Street, Al Maather District, P O Box: 5101 &
59090 & 42503, Riyadh 11525 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
06.09.1976 |
|
|
|
|
Com. Reg. No.: |
1010010813, |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacturer of
Basic Chemicals, Intermediates, Polymers, Fertilizers and Metals |
|
|
|
|
No. of Employees : |
16,000
(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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
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
SAUDI BASIC INDUSTRIES CORPORATION (SABIC)
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
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
· 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
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
·
Government
of Saudi Arabia 70%
·
Local
businessmen and private investors 30%
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
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
Brand Names: SABIC
Operating Trend: Steady
Subject has a workforce
of approximately 16,000 employees.
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR’000)
Consolidated
Balance Sheet 31/12/13 31/12/12
ASSETS
Current assets
Cash and cash equivalents
37,546,960
36,836,440
Short-term
investments 30,681,255
28,985,367
Accounts
receivable 30,116,345
31,542,075
Inventories 32,441,952
34,498,649
Prepayments and
other current assets 4,065,816
4,432,836
Total current
assets 134,852,328
136,295,367
Non-current
assets
Investments 13,491,379
10,381,738
Property, plant,
and equipment 165,434,911
165,440,316
Intangible assets
22,196,733
22,661,123
Other non-current
assets 3,095,218 2,659,344
Total non-current
assets 204,218,241
201,142,521
TOTAL ASSETS 339,070,569
337,437,888
LIABILITIES AND
EQUITY
Current
liabilities
Short-term bank
borrowings 2,191,243
874,188
Current portion of
long-term debt 5,725,889 15,029,453
Accounts payable 19,503,827
19,604,347
Accruals and
other current liabilities 13,995,357
9,627,281
Zakat payable 3,049,797
3,207,770
Total current
liabilities 44,466,113
48,343,039
Non-current
liabilities
Long-term debt 73,947,077
79,531,700
Other non-current
liabilities 3,506,577
3,175,896
Employee benefits
10,494,719
10,535,928
Total non-current
liabilities 87,948,373
93,243,524
Total liabilities
132,414,486
141,586,563
EQUITY
Shareholders’
equity
Share capital 30,000,000
30,000,000
Statutory reserve
15,000,000
15,000,000
General reserve 93,799,473
84,021,011
Retained earnings
17,471,944
16,394,004
Total
shareholders’ equity 156,271,417
145,415,015
Non-controlling
interests 50,384,666
50,436,310
Total equity 206,656,083
195,851,325
TOTAL LIABILITIES AND EQUITY 339,070,569
337,437,888
Consolidated
Statement of Income
Sales 189,031,500
189,025,547
Cost of sales (133,687,137)
(135,632,216)
GROSS PROFIT 55,344,363
53,393,331
Selling, general,
and administrative expenses (12,759,672)
(12,367,794)
INCOME FROM MAIN
OPERATIONS 42,584,691
41,025,537
Share in earnings
of equity-accounted investees 328,756 1,031,719
Financial charges
(1,756,272)
(2,492,797)
Other income 1,309,273
1,279,936
INCOME BEFORE
SHARE OF NON-CONTROLLING
INTERESTS AND ZAKAT
42,466,448 40,844,395
Share of
non-controlling interests (14,888,066)
(13,564,133)
INCOME BEFORE
ZAKAT 27,578,382
27,280,262
Zakat (2,300,000)
(2,500,000)
NET INCOME 25,278,382
24,780,262
Local sources
consider subject’s financial condition to be Good.
·
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
No complaints
regarding subject’s payments have been reported.
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
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.61.74 |
|
|
1 |
Rs.92.71 |
|
Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.