MIRA INFORM REPORT

 

 

Report No. :

349009

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC)

 

 

Registered Office :

Petrochemical Industries Company Building Khalid Ibn Waleed Street1084 Safat 13011

 

 

Country :

Kuwait

 

 

Financial as on :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

27.07.1963

 

 

Com. Reg. No.:

9049, Safat

 

 

Legal Form :

Kuwaiti Shareholding Company - KSC

 

 

Line of Business :

Producers of petrochemicals.

 

 

No. of Employee :

600

 

 

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Kuwait

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

SUMMARY

 

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

 

 

COMPANY NAME

 

PETROCHEMICAL INDUSTRIES COMPANY KSC (PIC)

 

 

ADDRESS

 

 

Registered & Physical Address

 

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

 

Premises

 

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 / 23260343 / 23262450

 

·       PO Box: 9453                                                                                   Owned Poly-Propylene Plant

Ahmadi 61005

Tel: (965) 23262032

Fax: (965) 23261779

 

·       Subject operates a further 9 branches located throughout Kuwait.

 

 

KEY PRINCIPALS

 

 

     Name                                                                                               Position

 

·       Mohammed Al Farhood                                                                    Chairman

 

·       Mazen Al Sardi                                                                                 Vice Chairman

 

·       Ahmad Al Jimaz                                                                               Director

 

·       Asaad Al Saad                                                                                 Director

 

·       Nawal Al Fzaiea                                                                                Director

 

·       Nasser Al Shammaa                                                                         Director

 

·       Ahmad Habeeb                                                                                Director

 

·       Asaad Ahmad          Al Saad                                                                        Chief Executive Officer

 

·       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

 

 

LEGAL FORM & OWNERS

 

 

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

 

Name of Shareholder (s)                                     Percentage

 

·       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.

 

 

AFFILIATED COMPANIES

 

 

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 %

 

·       Equate Petrochemical Company                                                                              42.5 %

 

·       Dow Chemical Co                                                                                                   42.5 %

 

·       The Kuwait Olefins Company                                                                       42.5 %

 

·       Gulf Petrochemical Industries Co (GPIC)                                                                  33 %

     Bahrain

 

·       Sino Arab Chemical Fertilizer Co (SACF)                                                                  30 %

China

 

·       Arabian Oil Company                                                                                              10 %

 

·       Boubyan Petrochemical Co                                                                                      9 %

 

·       Qurain Petrochemical Industries Co                                                                          6 %

 

 

OPERATIONS

 

 

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.

 
Facilities

 

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

 

Production Capacity

 

                        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

 

PIC Agents

 

·       Tenant Limited                                                                                                                                  Australia

·       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 DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Consolidated Income Statement                                     31/03/14                        31/03/13

 

Sales                                                                            166,921,492                  173,449,557

Cost of sales                                                                (136,492,764)                (120,781,456)

Gross profit                                                                  30,428,728                    52,668,101

Share of results of associates                                       190,153,996                  153,390,987

Share of results of joint ventures                                                66,779,306                    46,969,944

Distribution, general and administrative expenses           (31,235,581)                  (23,655,463)

Interest income                                                             367,244             2,342,375

Other income                                                                6,847,081                      5,531,673

Other expenses                                                             (103,532)                       (1,133,370)

Net gain (loss) on foreign exchange                               3,093,258                      (5,346,206)       

Reversal of provision for legal claim                              86,898,990                    -                      

Profit before board of directors remuneration                 353,229,490                  230,768,041

Board of directors’ remuneration                                    (44,350)                        (43,100)           

Profit (loss) for the year                                                             353,185,140                  230,724,941

Other comprehensive income:

Foreign currency translation adjustments                        (2,061,374)                    12,042,229

Changes in fair value of an available for sale                  4,840,000                      (1,540,000)

financial asset                                                              

Share of associates and joint ventures reserves              (5,284,572)                    -

Other comprehensive loss for the year                           (2,505,946)                    10,502,229

Total comprehensive income                                          350,679,194                  241,227,170     

 

Consolidated Balance Sheet                                           31/03/14                        31/03/13

 

ASSETS

Non-current assets

Property, plant and equipment                                       80,174,962                    82,892,370       

Intangible assets                                                           682,611             944,768

Investments in associates                                              270,350,814                  262,785,322

Investments in joint ventures                                          165,306,215                  158,148,408

Available for sale financial asset                                    26,620,000                    21,780,000

Amount due from the ultimate parent company               120,437,773                  120,437,773

Spare parts                                                                   11,927,171                    11,762,277

Other assets                                                                 57,463,349                    60,297,016

732,962,895                  719,047,934

Current assets

Inventories                                                                    3,139,121                      4,279,747                                 

Accounts receivable and prepayments                           195,743,190                  30,147,456

Amounts due from related parties                                  327,544             455,075

Bank balances, deposits and cash                                 48,444,942                    581,691,572

                                                                                    247,654,797                  616,573,850

TOTAL ASSETS                                                            980,617,692                  1,335,621,784

 

EQUITY AND LIABILITIES

Equity

Share capital                                                                 600,000,000                  600,000,000

Statutory reserve                                                           135,460,037                  120,437,773

Foreign currency translation reserve                               (9,845,347)                    (7,783,973)

Fair value reserve                                                          15,620,000                    10,780,000

Re-measurement pf retirement benefits                           (5,284,572)                    -

Accumulated losses                                                      -                                   (203,006,852)

Total equity                                                                   735,950,118                  520,426,948

Non-current liabilities

Employees’ end of service benefits                               41,275,443                    20,448,080

Other liabilities                                                              22,992,404                    19,764,136

                                                                                    64,267,847                    40,212,216

 

Current liabilities

Accounts payable and accruals                                      43,960,047                    50,085,333

Amounts due to related parties                                      1,283,656                      11,609,787

Dividends payable                                                        135,156,024                  -          

Provision for legal claim                                                -                                   713,287,500

                                                                                    180,399,727                  774,982,600

Total liabilities                                                               244,667,574                  815,194,836

TOTAL EQUITY AND LIABILITIES                                   980,617,692                  1,335,621,784

 

Figures for the year ending 31st March 2015 were not available.

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       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

 

 

PAYMENT HISTORY

 

Subject’s payment record is reported to be met in a generally prompt manner.

 

 

GENERAL COMMENTS

 

Established in 1963, Petrochemical Industries Company (PIC) now exports its products, including fertilizer, feedstocks, and ammonia, to more than 50 countries worldwide.

 

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.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

ANK

 


 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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