MIRA INFORM REPORT

 

 

Report No. :

348934

Report Date :

05.11.2015

 

IDENTIFICATION DETAILS

 

Name :

S-OIL CORPORATION

 

 

Registered Office :

192, Baekbeom-ro, Mapo-gu, Seoul, Korea, 04196

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

06.01.1976

 

 

Com. Reg. No.:

116-81-36743

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Petroleum Refineries

 

 

No. of Employees :

2,800

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Exist

 

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

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible economic growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies. A system of close government and business ties, including directed credit and import restrictions, initially made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 7% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long-term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA


Basic Information

 

Company Name

S-OIL CORPORATION

(Korean Company Name : “에쓰-오일()”)

Registered Address

192, Baekbeom-ro, Mapo-gu, Seoul, Korea

Building

 

Zip Code

04196

Tel

+82-2-3772-5151

Fax

+82-2-786-4030

E-mail

hlbjo@s-oil.com

Website

www.s-oil.com

Trading Address

192, Baekbeom-ro, Mapo-gu, Seoul, Korea

(Old Address System : 471, Gongdeok-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-3772-5151

Fax

+82-2-786-4030

Other Address-Onsan Factory

360, Sanam-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-231-2114

Fax

+82-52-231-2048

Type

Export/Import

Industry

Petroleum Refineries

  Main Business

Gasoline, Kerosene, Light Oil, Lubricants, Asphalt, Petrochemicals, LPG

  Sub Business

 

Established (mm/dd/yyyy)

01/06/1976

The Subject owns the premises of Onsan Factory.

 

 

Detailed products

 

Activity

Detailed Products (UNSPSC)

Sell

Gasoline or Petrol(15101506)

Sell

Lubricating preparations(15121500)

Sell

Diesel fuel(15101505)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Kerosene(15101502)

Sell

Engine oil(15121501)

Sell

Chemistry reagents or solutions(41116105)

 

 

CEO’s

 

Name

Nasser Al-Mahasher

Address

 

Date of Birth

08/06/1960

Title

President & CEO

Sex

Male

Nationality

Saudi Arabian

Profiles

 

Capital (KRW)

291,511,797,500

Employees

2,800

Formation

Listed Company (Korea Stock Exchange : 010950) as of 05/08/1987

A Company of S-OIL CORPORATION

Foreign Direct Investment Corporation

Bank Details

Woori Bank-East Yoido Branch

Hana Bank-Yoido Branch

Shinhan Bank-Yoido Nam Branch

Korea Development Bank-HQ Office

Corporate Registered No.

110111-0189955

Business Registered No.

116-81-36743

Permit & Licenses

Int’l Trade No.: 813156

Shareholder Position

Name

Shares

%

ARAMCO OVERSEAS COMPANY, B.V. ("AOC")

71,739,062

61.52

NATIONAL PENSION SERVICE(110171-0007134)

4,517,223

3.87

OTHERS

40,348,434

34.60

TOTAL

116,604,719

100.00

Company History

01/1976 Korea-Iran Petroleum Co., Ltd. was established as a joint venture between Ssangyong Cement Industrial Co., Ltd. and NIOC to secure stable supply of crude oil after the first oil crisis in the early 1970s

05/1980 Began operation of the first atmospheric distillation unit (90,000 B/D)

06/1980 Company name changed to Ssangyong Oil Refining Co., Ltd. as Ssangyong Cement Industrial Co., Ltd. took over NIOC's share in the Company

01/1981 Began operation of high-class lube base oil plant

05/1985 Began commercial operation of a gasoline manufacturing plant

05/1987 Launched initial public offering on the Korea Exchange

07/1989 Accomplished vertical integration in the lube oil sector with the production and supply of Dragon-branded automotive engine oil, utilizing high-quality lube base oil of international competitiveness

01/1991 Began operation of the second atmospheric distillation unit (240,000B/D)

04/1991 Entered into a petrochemical downstream by beginning operation of BTX plant that produces high value-added benzene, toluene and Xylene

05/1991 Concluded joint venture agreement and crude-oil purchase agreement with AOC. AOC invested USD 400 million for 35% stake in company shares, enabling the Company to push its Bunker-C cracking and desulfurizing complex projects

11/1991 Established R & D Center

01/1995 Began operation of the third atmospheric distillation unit (250,000 B/D)

03/1996 Began operation of the 1st stage Bunker-C Cracking Center facilities: HYC (Hydrocracking) 75,000 B/D, Hyvahl (Residue Desulfurization) 52,000 B/D

04/1997 Began operation of the 2nd stage Bunker-C Cracking Center Facilities : R2R (RFCC) 68,000 B/D, MHC (VGO HDS) 40,000 B/D. With the completion of the 1st and 2nd stage Bunker-C Cracking Centers, the Company owned the nation's largest Bunker-C cracking plants - the Bunker-C cracking plant (143,000 B/D) and the Bunker-C desulfurizing plant (92,000 B/D)

12/1997 Completed Xylene Center, one of the world's largest single plant facilities to Produce para-xylene with an annual production capacity of 650,000 tons

12/1999 Inaugurated stand-alone management system. As part of Ssangyong Group’s restructuring program, the Company bought back the equity held by Ssangyong Cement Industrial Co., Ltd., then the second largest shareholder, as treasury shares

03/2000 Company name changed to S-Oil Corporation

09/2000 Completed large-scale storage tanks with a combined capacity of 9 million barrels

12/2001 Implemented 2-for-1 stock split

11/2002 Completed 2nd Hyvahl Complex (52,000 B/D) to produce high value low-sulfur fuel oils and light oils from low-value high viscosity/highsulfur fuel oils

12/2002 Began production of Ultra-S (very high VI Group III) lube base oils, with the completion of total hydro-processing plants (hydrocracking, wax hydroisomerization and hydrofinishing)

09/2003 Acquired ISO9001 (Quality Management System) Certificate

07/2004 Launched S-Oil Bonus Card system

05/2005 Launched new-concept synthetic engine oil “SSU”

01/2006 Launched premium gasoline “S-Gasoline Premium”

06/2006 30th Anniversary of the Company

04/2007 Successfully concluded joint venture agreement between AOC and Hanjin Energy, and re-established the economic cooperation between an oil producing country and an oil consuming country

06/27/2011 Moved to the present HQ address from 45th Fl., Korea Life Insurance 63 Bldg., 60, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea (Yeouido Post Office Box 758)

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Nasser Al-Mahasher

Saudi Arabian

1960.08.06

Wayne State  Univ.
 Ex. Head of Saudi Petroleum Ltd. Tokyo

Ex. Head of Refining Operation & Engineering of Saudi Aramco

Director

Mr.

A. F. Al-Wuhaib

Saudi Arabian

1954.03

Saudi Aramco Senior Vice President

Univ. of California Riverside MBA, USA
King Fahd Univ. of Petroleum & Minerals, Saudi Arabia

Director

Mr.

M. O. Al-Subaie

Saudi Arabian

1957.09

Executive of Saudi Aramco

King Fahd Univ., Saudi Arabia

Columbia College, USA

Director

Mr.

S.A. Al-Hadrami

Saudi Arabian

1962.11

Saudi King Fahd Univ. of Petroleum & Minerals
MBA

Director

Mr.

I.Q. Al-Buainain

Saudi Arabian

1967.08

Phoenix Univ. MBA, USA

Outside Director

Mr.

S.A. Al-Ashgar

Saudi Arabian

1937. 09. 07

Univ. of Texas Austin, USA

Outside Director

Mr.

A.A. Al-Talhah

Korean

1948.05

East Texas State Univ., USA

Outside Director

Mr.

Kim Cheol-Soo

Korean

1941.01

Univ. of Mass., USA

Outside Director

Mr.

Hong Seok-Woo

Korean

1953.06

Sungkyunkwan University, Korea

Outside Director

Mr.

Lee Seung-Won

Korean

1932.02

Univ. of North Carolina, Korea

Outside Director

Mr.

Shin Eui-Soon

Korean

1950.06

Univ. of Washington, USA

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

9,516,290,000,000

10,970,970,000,000

639,977,000,000

(*)2014

28,557,562,000,000

10,249,414,000,000

-288,165,000,000

(*)2013

31,158,528,000,000

11,914,935,000,000

289,306,000,000

(*)2012

34,723,291,000,000

12,492,041,000,000

580,015,000,000

(*)2011

31,913,863,000,000

13,204,101,000,000

1,192,426,000,000

(*)2010

20,511,068,000,000

10,003,498,000,000

710,066,000,000

2009

17,423,951,000,000

9,049,990,000,000

273,246,000,000

2008

23,000,290,510,213

7,655,788,692,167

446,214,250,304

2007

15,229,397,740,616

9,459,371,809,587

746,495,688,118

2006

14,565,353,496,739

6,663,938,543,924

758,563,379,017

2005

12,232,327,031,738

6,114,528,848,059

654,925,847,878

2004

10,688,705,170,836

5,545,661,724,236

941,103,632,216

(*) Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

600,000,000,000

Paid-Up Capital(KRW)

291,511,797,500

Total Issues Shares

116,604,719 (Common:112,582,792, Preferable:4,021,927)

 

Balance Sheet

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

10,970,970

10,249,414

11,914,935

Current Assets

6,358,197

5,706,292

7,911,340

Cash & Cash Equivalents

320,804

710,321

583,438

Trade Receivables

1,332,289

1,524,056

2,160,193

Other Receivables

416,739

575,433

560,559

Current Financial Instruments

1,504,438

441,183

356,751

Derivatives

6,714

816

4,768

Inventories

2,761,364

2,415,448

4,237,915

Other Current Assets

15,849

9,591

7,716

Deferred Income Taxes

 

29,444

 

Non-Current Assets

4,612,773

4,543,122

4,003,595

Other Receivables

79,417

78,982

74,993

Other Financial Assets

56,869

60,255

92,191

Investment_Related Companies

25,754

25,754

25,490

Tangibles

4,394,594

4,321,716

3,760,426

Intangibles

47,197

49,960

46,526

Other Non-Current Assets

8,942

6,455

3,969

Total Liabilities

5,426,881

5,345,197

6,565,330

Current Liabilities

3,955,287

3,955,145

5,884,823

Trade Payables

1,393,921

840,852

2,328,601

Other Payables

600,998

644,211

714,026

Short-Term Borrowings

1,691,741

2,324,356

2,686,599

Derivatives

6,862

341

4,503

Accrued Income Tax

126,625

 

23,264

Provisions

13,754

4,885

4,216

Deferred Income Tax Credit

27,844

27,663

28,085

Other Current Liabilities

93,542

112,837

95,529

Non-Current Liabilities

1,471,594

1,390,052

680,507

Other Payables

20,569

19,693

17,890

Long-Term Borrowings

1,310,793

1,313,289

519,879

Provision for Severance & Retirement

47,285

32,723

9,027

Deferred Income Tax Credit

92,947

24,347

133,711

Capital Stock

291,512

291,512

291,512

Capital Surplus

379,190

379,190

379,190

Installments

977,834

977,843

1,002,488

Treasury Stock

-1,876

-1,876

-1,876

Profit Surplus

3,897,429

3,257,548

3,678,291

Total Equity

5,544,089

4,904,217

5,349,605

Liab. & Shareholder’s Equity

10,970,970

10,249,414

11,914,935

 

Income Statement

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

9,516,290

28,557,562

31,158,528

Cost of Sold Goods

8,380,113

28,282,216

30,229,317

Gross Profit

1,136,177

275,346

929,211

Selling Expenses

246,251

479,102

475,847

Admin. Expenses

45,584

85,948

87,320

Operating Income

844,342

-289,704

366,044

Other Operating Income

205,346

480,780

517,835

Other Operating Expenses

175,996

468,024

537,965

Finance Income

76,844

220,230

290,879

Finance Expenses

113,222

329,258

250,001

Income Before Taxes

837,314

-385,976

386,792

Income Taxes Expenses

197,337

-97,811

97,486

Net Income

639,977

-288,165

289,306

 

Cash Flows

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

1,587,964

879,212

793,070

Cash Flows from Operating

1,568,994

942,651

1,024,016

Interests Received

13,867

29,286

41,895

Interests Paid

-27,833

-47,498

-56,568

Income Taxes

27,336

-52,382

-224,366

Dividends Received

5,600

7,155

8,093

Cash Flows from Investing

-1,300,456

-964,197

-95,500

Cash Inflow from Investing

12,557

66,401

401,304

Cash Outflows for Investing

-1,313,013

-1,030,598

-496,804

Cash Flows from Financing

-677,025

211,868

-547,369

Cash Inflows from Financing

 

798,289

76,636

Cash Outflows from Financing

-677,025

-586,421

-624,005

Increase/Decrease in Cash

-389,517

126,883

150,201

Cash at the Beginning of Year

710,321

583,438

433,237

Cash at the End of Year

320,804

710,321

583,438

 

Products, Technologies, Services Description

 

Main Products & Services

OIL REFINING PRODUCTS

Gasoline, Premium Gasoline

Diesel

Kerosene

Bunker-C

 

LUBE PRODUCTS

Lube base oil

Marine lubricants

 

PETROCHEMICALS

Benzene

Toluene

Xylene

Para-xylene

 

Brand Name : S-Gasoline, S-Diesel, Ultra-S

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SAUDI ARAMCO (SAUDI ARABIA)

Customers

KOREA SOUTHERN POWER CO., LTD.(110111-2207135)

KOREA EAST-WEST POWER CO., LTD.(110111-2207151)

OCEAN POLICE OFFICE

MINISTRY OF DEFENSE, KOREA

KOREAN AIR LINES CO., LTD.(110111-0108484)

Competitors

SK ENERGY CO., LTD.

SK BLDG., 99, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2121-5114  FAX:+82-2-2121-7001

 

GS CALTEX CORPORATION

GS GANGNAM TOWER, 679, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2005-1114 FAX:+82-2-2005-6051

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA OIL TERMINAL CO., LTD.(134111-0379079)

SAUDI ARAMCO PRODUCTS TRADING COMPANY

ARAMCO ASIA JAPAN

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

S-OIL TOTAL LUBRICANT CO., LTD.(110111-2805004)

(50.%+1 held by the subject company) With TOTAL RAFFINAGE MARKETING S.A.

Subsidiary

S-INTERNATIONAL LTD.(LIBERIA)

(100.0% held by the subject company)

NOVASAGE CHAMBERS,PO BOX 3018, LEVEL 2, CCCS BUILDING, BEACH ROAD, APIA, SAMOA

Corporate Ownership

SAUDI ARABIAN OIL COMPANY(SAUDI ARABIA)

ARAMCO OVERSEAS COMPANY, B.V. (AOC : NETHERLANDS)

Major Shareholders

ARAMCO OVERSEAS COMPANY, B.V. (AOC : NETHERLANDS)

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2015

2014

2013

Export

5,556,697

17,559,037

18,863,700

Domestic

3,959,593

10,998,525

12,294,828

Total

9,516,290

28,557,562

31,158,528

The Subject exports to China and USA.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

Seoul High Court

Korea National Oil Corporation(114671-0001753)

The Subject Company

Related to Imposed Dues

32,009

3rd Round is proceeding.

 

 

News Clipping

 

-----

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.57

UK Pound

1

Rs.101.13

Euro

1

Rs.71.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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.