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Report No. : |
301906 |
|
Report Date : |
07.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
PETROCHEMICAL
INDUSTRIES COMPANY KSC (PIC) |
|
|
|
|
Registered Office : |
Petrochemical Industries
Company Building, Khalid Ibn Waleed Street, P O Box 1084, Safat 13011 |
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Country : |
Kuwait |
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|
|
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Financials (as on) : |
31.03.2013 (Consolidated) |
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|
|
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Date of Incorporation : |
23.07.1963 |
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|
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Com. Reg. No.: |
9049, Safat |
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|
|
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Legal Form : |
Kuwaiti
Shareholding Company - KSC |
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|
|
|
Line of Business : |
Producers of
Petrochemicals. |
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|
|
|
No. of Employees : |
600 |
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 |
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|
|
|
Payment Behaviour : |
Regular |
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|
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Kuwait |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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 :
PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC)
Country of Origin : Kuwait
Legal Form :
Kuwaiti Shareholding Company - KSC
Registration Date : 23rd
July 1963
Commercial Registration
Number : 9049, Safat
Membership Number : 544
Issued Capital : KD
600,000,000
Paid up Capital : KD
600,000,000
Total Workforce : 600
Activities :
Producers of petrochemicals.
Financial Condition : Good
Payments : Nothing
detrimental uncovered
Operating Trend : Steady
PETROCHEMICAL
INDUSTRIES COMPANY KSC (PIC)
Building : Petrochemical Industries Company
Building
Street : Khalid Ibn Waleed Street
PO Box : 1084
Town : Safat 13011
Country : Kuwait
Telephone : (965) 23211000 / 22448280 / 22422141
Facsimile : (965) 23211171 / 22405791 / 22445913
Email : media@pic.com.kw
Subject operates from
a large suite of offices that are owned and located in the Central Business
Area of Safat.
Branch Office
(s)
Location Description
·
PO Box:
9116 Owned
fertiliser plant
Ahmadi 61002
Tel: (965) 23260622 / 23261544
Fax: (965) 23261860
·
PO Box:
9453 Owned
Poly-Propylene
Plant
Ahmadi 61005
Tel: (965) 23262032
Fax: (965) 23261779
·
Subject
operates a further 9 branches located throughout Kuwait.
Name Position
· Maha Abdul Rahman
Mulla Hussain Chairman
· Anwar Ben Salama Vice Chairman
·
Ahmad Al Jimaz Director
· Hussain Ismail Director
· Nawal Al Fuzaia Director
· Abdullatif
Al Hoti Director
· Mefreh Al Shemmari Director
· Mohammed Al Farhood Director
· Abdul Rasool Jafar Deputy
Chief Executive Officer Olefins
· Abdullah Ahmad
Alswailem Deputy
Chief Executive Officer Fertilizer
· Hadi Hasan Abul
Redhaei Deputy
Chief Executive Officer Aromatics
· Saad Abu Khousah Deputy
Chief Executive Officer Finance
Date of Establishment : 23rd
July 1963
Legal Form :
Kuwaiti Shareholding
Company - KSC
Commercial Reg. No. : 9049, Safat
Membership
No. : 544
Issued Capital : KD 600,000,000
Paid up Capital : KD 600,000,000
·
Kuwait
Petroleum Corporation (KPC) * 100%
Salhiya Complex, 1st
– 15th Floors
Fahed Al Salem Street
PO Box: 26565
Safat 13126
Tel: (965) 22455455 / 22463318
Fax: (965) 22467159 / 22423371
/ 22451403
* Kuwait Petroleum Corporation (KPC) is wholly owned by the
Government of Kuwait and is responsible to the Ministry of Oil.
Subject is a wholly owned subsidiary of 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 %
·
Piccan
Holding Inc 100 %
Canada
·
ME Global
BV 50 %
Netherlands
·
ME
Global Canada Inc 50 %
Canada
·
Kuwait
Drilling Co KSC 49 %
·
Gulf
Petrochemical Industries Co (GPIC) 33 %
Bahrain
·
Sino
Arab Chemical Fertilizer Co (SACF) 30 %
China
·
Boubyan
Petrochemical Co 10 %
·
Arabian
Oil Company 10 %
Activities: Petrochemical Industries Company was
founded with the objective of setting up various types of
petrochemical industries to promote and diversify the sources of
national income through the exploitation of the natural gas that accompanies
crude oil reserves.
Subject’s facilities have undergone several phases of expansion and new
plants have been constructed over the past few years. The company now claims
the largest ammonia and urea manufacturing complex in the Middle East, and an
ultra-modern plant for salt and chlorine products. PIC’s fertiliser plants have
gone through several stages of expansion, merger and development over the years
and now comprise of the following units:
4 - Liquid ammonia plants
3 - Urea plants
1 - Concentrated sulphuric acid plant
Product Daily Production
Capacity Daily Production
Capacity
(Designed) (Actual)
Salt 150
tonnes 100
tonnes
Chlorine Gas 75 tonnes 38 tonnes
Liquid Chlorine 50 tonnes 25 tonnes
Liquid Caustic Soda 84 tonnes 43 tonnes
Caustic Soda Flakes 50 tonnes 17 tonnes
Solid Caustic Soda 80 tonnes 17 tonnes
Hydrochloric acid 40
cubic metres 31 cubic metres
Sodium Hypochlorate 35 cubic
metres 17 cubic metres
Compressed Hydrogen Gas 303 cubic metres 129 cubic metres
·
S.K. Global North
Korea
·
Transfert
Ltd. India
·
Minaz
International India
·
Ahmed
Jaffer & Company (P) Ltd Pakistan
·
Yordan
Obeji & Co Jordan
·
Al
Matin Co. for Trade & Industry Syria
·
Omnitrade
Marketing Lebanon
·
Tunice
Negoce Tunisia
·
Mitsubishi
Corporation Hong Kong
Import
Countries: United States of
America
Operating Trend: Steady
Subject has a
workforce of approximately 600 employees.
Financial
highlights provided by local sources are given below:
Currency: Kuwaiti
Dinars (KD)
Consolidated
Income Statement 31/03/13 31/03/12
Sales 658,805,645 713,761,070
Cost of sales (550,075,007) (574,003,790)
Gross profit 108,730,638
139,757,280
Share of results
of associates 153,390,987 152,967,738
Distribution,
general and administrative expenses (24,455,499) (24,710,623)
Interest income 2,482,167 1,455,281
Other income 6,090,839 17,566,649
Other expenses (1,133,370) (1,978,468)
Finance costs (1,258,124) (1,503,458)
Net loss on
foreign exchange (5,485,998) (3,089,616)
Provision for
legal claim
- (695,400,000)
Profit (loss) before income tax expense and board
of directors’ remuneration 238,361,640
(414,935,217)
Provision for
income tax (8,985,370) (18,514,244)
Board of
directors’ remuneration (43,100) (6,000)
Profit (loss) for the year 229,333,170
(433,455,461)
Other comprehensive income:
Foreign currency
translation adjustments 12,042,229 872,115
Changes in fair
value of an available for sale
financial asset (1,540,000) 4,180,000
Other comprehensive income for the year 10,502,229
5,052,115
Total comprehensive income (loss) 239,835,399
(428,403,346)
Total profit
(loss) for the year attributable to:
Equity holders of
the parent company 229,053,587 (433,731,793)
Non-controlling
interests 279,583 276,332
229,333,170 (433,455,461)
Total comprehensive income (loss) attributable to:
Equity holders of
the parent company 239,555,816 (428,679,678)
Non-controlling
interests 279,583 276,332
239,835,399 (428,403,346)
Consolidated
Balance Sheet 31/03/13 31/03/12
ASSETS
Non-current assets
Property, plant
and equipment 131,681,235 143,639,916
Goodwill 100,349,188 97,362,860
Intangible assets 944,767 880,335
Investments in
associates 262,785,322
274,765,382
Available for
sale financial asset 21,780,000 23,320,000
Amount due from
the ultimate parent company 120,437,773 120,437,773
Spare parts 11,762,276 10,241,996
Other assets 86,283,615 82,821,846
736,024,176 753,470,108
Current assets
Inventories 37,553,337 34,639,919
Accounts
receivable and prepayments 75,369,884 110,439,828
Amounts due from
related parties 455,075 297,666
Bank balances,
deposits and cash 596,670,610 304,089,406
710,048,906 449,466,819
TOTAL ASSETS 1,446,073,082
1,202,936,927
EQUITY AND LIABILITIES
Equity
Share capital 600,000,000 600,000,000
Statutory reserve
120,437,773 120,437,773
Foreign currency
translation reserve (7,783,973) (19,826,202)
Fair value
reserve 10,780,000 12,320,000
Accumulated
losses (204,678,206) (433,731,793)
Equity attributable to equity holders of the parent
company 518,755,594
279,199,778
Non-controlling
interests 2,995,808 2,920,680
Total equity 521,751,402
282,120,458
Non-current liabilities
Long term
borrowings 22,111,913 20,722,920
Obligations under
finance leases - 13,490,760
Employees’ end of
service benefits 20,448,079 18,794,901
Other liabilities
33,744,571 31,113,677
76,304,563 84,122,258
Current liabilities
Accounts payable
and accruals 105,715,615 109,327,876
Short term
borrowings and current portion of long
term borrowings 17,404,215 23,921,760
Obligations under
finance leases - 417,240
Amounts due to
related parties 11,609,787 7,627,335
Provision for
legal claim 713,287,500 695,400,000
848,017,117 836,694,211
Total liabilities 924,321,680
920,816,469
TOTAL EQUITY AND LIABILITIES 1,446,073,082 1,202,936,927
Figures for the
year ending 31st March 2014 were not available.
Local sources
consider subject’s financial condition to be Good.
·
Bank of
Kuwait & the Middle East (KSC)
Abdullah Al Salem Street
PO Box: 71
Safat 13001
Tel: (965) 22459771
·
National
Bank of Kuwait SAK
Abdullah Al Salem Street
PO Box: 95
Safat 13001
Tel: (965) 22421161
·
Commercial
Bank of Kuwait SAK
Mubarek Al Kabir Street
PO Box: 2861
Safat 13029
Tel: (965) 22411001
Subject’s payment
record is reported to be met in a generally prompt manner.
Subject is a wholly
owned subsidiary of Kuwait Petroleum Corporation (KPC), which in turn is owned
by the government of Kuwait and as the subject is deemed trustworthy for
respecting its financial trade commitments.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.39 |
|
|
1 |
Rs.96.72 |
|
Euro |
1 |
Rs.75.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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 |
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|
-- |
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.