MIRA INFORM REPORT
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Report No. : |
331148 |
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Report Date : |
10.07.2015 |
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, PO 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 : |
06.09.1976 |
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Com. Reg. No.: |
1010010813 |
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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 Company |
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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.
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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
PO Box: 10040 & 11115 Factory
premises
Jubail Industrial City
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-%20331148%2010-Jul-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
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.63.51 |
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|
1 |
Rs.97.85 |
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Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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.