MIRA INFORM REPORT

 

 

Report No. :

302463

Report Date :

12.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARAMCO SHELL REFINERY CO LTD

 

 

Registered Office :

Madinat Al Jubail Al Sinaiyah Street, Jubail Industrial City, PO Box 10088 & 10025, Jubail 31961

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

1979

 

 

Com. Reg. No.:

2055000925

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Owners and Operators of a Petroleum Refinery

 

 

No. of Employee :

640

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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


SUMMARY

 

Company Name                                    : SAUDI ARAMCO SHELL REFINERY CO LTD

Trading As                                            : SASREF

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Joint Stock Company

Registration Date                                  : 1979

Commercial Registration Number           : 2055000925, Jubail

Issued Capital                                       : SR 1,600,000,000

Paid up Capital                                     : SR 1,600,000,000

Total Workforce                                     : 640

Activities                                               : Owners and operators of a petroleum refinery

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

 


COMPANY NAME

 

SAUDI ARAMCO SHELL REFINERY CO LTD

 

TRADING AS: SASREF

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Madinat Al Jubail Al Sinaiyah Street

Area                 : Jubail Industrial City

PO Box            : 10088 & 10025

Town                : Jubail 31961

Country             : Saudi Arabia

Telephone         : (966-13) 3572000 / 3572233 / 3572572

Facsimile          : (966-13) 3580150 / 3573142 / 3572525

Email                : info@sasref.com.sa

 

Premises

 

Subject operates from a large suite of offices and a refining plant that are owned and located in the Industrial Area of Jubail.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Abdulrahman Al Wuhaib                                                             Chairman

 

Abdulhakim Al Gouhi                                                                 President

 

Raja Ahmad Murad Raja Bahrin                                                  Vice President

 

Andrew Smith                                                                            Director

 

Michle Faure                                                                             Director

 

Chris Streng                                                                              Director

 

Ahmad A Al Sa'adi                                                                    Director

 

Fuad A Al Hazmi                                                                       Director

 

Qassem Al Sheikh                                                                     General Manager

 

Nabil Mohamed Bassam                                                            Finance Manager

 

S I Al Husseini                                                                           Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1979

 

History : Subject was originally established in 1979 under the name of “Petromin Shell Refinery Co”

  with the following shareholders:

 

  -  General Petroleum & Mineral Organisation (Petromin)

  -  Shell Saudi Arabia (Refining) Ltd

 

On 1st July 1993, and following an order by Royal Decree, Saudi Aramco took control of the net assets of the General Petroleum &  Mineral Organisation (Petromin) and subsequently the business was re-organised and re-registered under the current style of “Saudi Aramco

Shell Refinery Co Ltd (Sasref)”.

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 2055000925, Jubail

 

Issued Capital              : SR 1,600,000,000

 

Paid up Capital            : SR 1,600,000,000

 

Name of Shareholder (s)                                                           Percentage

 

Saudi Arabian Oil Company (Saudi Aramco)                                    50%

Saudi Aramco Compound

PO Box: 5000

Dhahran 31311

Tel: (966-13) 8754915 / 8756110

Fax: (966-13) 8738490 / 8738190

 

Shell Saudi Arabia (Refining) Ltd                                                     50%

PO Box: 16996

Riyadh 11474

Tel: (966-11) 4762710

Fax: (966-11) 4762719

 

 

OPERATIONS

 

Activities: Owners and operators of a petroleum refinery located in Jubail.

 

The refinery, which started operation in 1985 with a total investment of SR 6 billion, makes use of advanced technology for the refining of more than 300,000 bpd of crude oil. It also produces various derivatives of petroleum like naphtha, kerosene, petrol, gas oil, sulphur, liquid petroleum gas, fuel oil and diesel. The refinery's products are also used as fuel and primary raw stock in petrochemical companies.

 

The refinery consists of two crude distillation units, a hydro cracker unit and aromatics, and has two 5 megawatts (each) turbo generators and another 34 megawatts by co-generation in the TGU that supply power to the complex. Around 24 megawatts are imported from the Saudi Electricity Company. Marafiq supplies the potable and sea cooling water while SABIC supplies Nitrogen to the refinery facility. Saudi Aramco supplies Arabian Light Crude feedstock and natural gas by pipeline to the refinery.

 

Subject’s product range includes Benzene, Fuel Oil, Gas Oil, Kerosene, Naphtha, Sulphur and Mogas component.

 

On 14th December 2009 SASREF inaugurated the refurbished central control room and the instrumentation master plan project. The ceremony ribbon was cut by the chairman of SASREF Board Mr. Abdulrahman F Al-Wuhaib in the presence of SASREF board of directors and management team, and from Yokogawa Middle East (YME), Mr. Akira Ogawa, President and CEO. The project is the second and final phase implementation of the Instrumentation Master Plan (IMP) program.  The program is based on ensuring business continuity and reliable operations at SASREF's plants for the next decade.

 

On 1st February 2010, Saudi Aramco Shell Refinery Co. (SASREF) signed a lump-sum turnkey contract with JGC-Gulf International Company Limited, to carry out the Engineering, Procurement and Construction   (EPC) to implement a project of two units to improve SASREF environmental performance. The project  involves a state of the art technology to build industrial facilities that would help bring down the refinery emissions to meet the environmental regulations of the Royal Commission.  On start up SASREF Sulphur dioxide emission will be less than 250 part per million. This will make SASREF’s emission the lowest of its kind in kingdom.

 

In February 2010, subject started the commissioning activities of the Ultra - Low Sulfur Diesel project to   produce around 100 thousand barrel per day of diesel with Sulphur less than 10 parts per million.

 

Production Capacity: 305,000 barrels per day

 

Import Countries: Europe and the United States of America

 

Export Countries: Asia and Europe

 

Subject has a workforce of 640 employees.

 

 


FINANCIAL DATA

 

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

National Commercial Bank

PO Box: 58

Jubail 51951

Tel: (966-13) 3612896

Fax: (966-13) 3611750

 

Saudi American Bank

Jubail Industrial City

PO Box: 10123

Jubail

Tel: (966-13) 3410433

 

Saudi British Bank

Industrial City Branch

PO Box: 10015

Jubail

Tel: (966-13) 3419147

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                January 2006

Credit amount                                       68,000

Amount overdue                                    0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Established in 1979, Saudi Aramco Shell Refinery Co Ltd (Sasref) owns and operates a petroleum refinery located in Jubail. Sasref’s total capacity of 305,000 barrels per day ranks it as one of the largest of refineries.

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.62.40

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.