MIRA INFORM REPORT

 

 

Report No. :

503152

Report Date :

10.04.2018

 

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

 

 

Formerly Known As :

SAUDI ARAMCO LUBRICATING OIL REFINING CO (LUBREF)

 

 

Registered Office :

Old Mina Road Aramco Industrial Area, Jeddah 21432, P O Box: 5518

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

28.08.1976

 

 

Com. Reg. No.:

4030010447, Jeddah

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the production of lubricating base oils.

 

 

No. of Employees :

1,100

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Saudi Arabia

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 87% of budget revenues, 42% 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. Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors; at the same time, however, 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 2017, the Kingdom incurred a budget deficit estimated at 8.3% of GDP, which was financed by bond sales and drawing down reserves. Although the Kingdom can finance high deficits for several years by drawing down its considerable foreign assets or by borrowing, it has cut capital spending and reduced subsidies on electricity, water, and petroleum products and plans to introduce a value-added tax. In January 2016, Crown Prince and Deputy Prime Minister MUHAMMAD BIN SALMAN announced that Saudi Arabia intends to list shares of its state-owned petroleum company, ARAMCO - another move to increase revenue and outside investment. The government has also looked at privatization and diversification of the economy more closely in the wake of a diminished oil market. Historically, Saudi Arabia has focused diversification efforts on power generation, telecommunications, natural gas exploration, and petrochemical sectors. More recently, the government has approached investors about expanding the role of the private sector in the health care, education and tourism industries. While Saudi Arabia has emphasized their goals of diversification for some time, current low oil prices may force the government to make more drastic changes ahead of their long-run timeline.

 

Source : CIA

 

 

Company name

 

SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

 

 

IDENTIFICATION & CONTACT DETAILS

1) Name (s):

Organization Official Name

:

SAUDI ARAMCO BASE OIL COMPANY (LUBREF)

Previously Known As

:

SAUDI ARAMCO LUBRICATING OIL REFINING CO (LUBREF)

 

2) Registered Address:

Address

:

Old Mina Road Aramco Industrial Area

Town

:

Jeddah 21432

Country

:

Saudi Arabia

PO Box

:

5518

Phone (s)

:

(966-12) 6366933 / 2296555 / 2296677 / 2296556 / 2296514 / 2296465 / 2296464 / 2296462 / 22996544

Facsimile

:

(966-12) 4275026

Email

 

alsaudn@luberef.com / bazuhairo@luberef.com / aldulaijana@lubrefc.com alkharboushz@lubref.com

 

3) Operational Address & Contact Details:

Address

:

Old Mina Road Aramco Industrial Area

Town

:

Jeddah 21432

Country

:

Saudi Arabia

PO Box

:

5518

Phone (s)

:

(966-12) 6366933 / 2296555 / 2296677 / 2296556 / 2296514 / 2296465 / 2296464 / 2296462 / 22996544

Facsimile

:

(966-12) 4275026

Email

 

alsaudn@luberef.com / bazuhairo@luberef.com / aldulaijana@lubrefc.com alkharboushz@lubref.com

 

LEGAL FORM & INCORPORATION (REGISTRATION) DETAILS

Legal Form - Category

:

Limited Liability Company

Date of Registration

:

28th August 1976

Commercial Registration Number

:

4030010447, Jeddah

History

:

Subject began in 1976 under the name “Saudi Aramco Lubricating Oil Refining Co (LUBREF)”. However in December 2013 it changed its name to “Saudi Aramco Base Oil  Company (LUBREF)”.

 

OTHER REGISTRATION/ MEMBERSHIPS

Chamber Membership Number

:

1150

 

KEY FACTS

Operational Status

:

Normal

Financial Condition

:

Undetermined

Primary Business Activity

:

Producers of lubricating base oils

Number of Employees

:

1,100

Capital

:

SR 441,000,000

Note:

Engaged in the production of lubricating base oils.


The sole in-Kingdom producer of lubricating base oils, Luberef owns and operates refineries in Jeddah (Luberef I) and Yanbu (Luberef II). The four base oils it produces are used in every lubricant brand blended in Saudi Arabia, including Petromin Oils, Toyota, Castrol, Mobil, Shell, Fuchs, Caltex and Gulf.


About 60 percent of Luberef’s production is consumed locally. The balance is exported to GCC countries, Eastern Mediterranean and Red Sea countries, East & South Africa and the Indian subcontinent.


Luberef, established in 1976, produces around 550,000 tonnes per year of oil lubricants at its two refineries on the kingdom's Red Sea coast at Jeddah and Yanbu.

 

The total base oil production capacity from both refineries is 550,000 metric tons/year of Group I base oil. Jeddah refinery is designed at 270,000 MT and Yanbu refinery is designed at 280,000 MT.


Luberef has undergone a major expansion project at its Yanbu refinery to produce Group II base oil. This raised the total production of base oil to 1,100,000 MT.


The production slate will include Group I & II base oil and Drilling oil 50-80 N.

 

CAPITAL DETAILS

Issued Capital:

No of Shares

No of Shares

Amount

N/A

N/A

SR 441,000,000

 

Paid Up Capital:

No of Shares

No of Shares

Amount

N/A

N/A

SR 441,000,000

 

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

1

Name

Saudi American Bank

 

Address

Andalous Street

 

PO Box

490 Jeddah 21411

 

Tel

(966-12) 6533555

 

BRANCH OFFICES

1

Address

30122 Yanbu

 

Tel

(966-14) 3252777

 

Description

Oil refinery

 

SHAREHOLDERS

Sr.No

Name

Percentage

1

Saudi Arabian Oil Company (Saudi Aramco)

70%

2

Jadwa Industrial Investment Co (JIIC)

30%

 

 

100%

Note:

In November 2007, Jadwa Industrial Investment Co (JIIC) of Saudi Arabia reached an agreement with ExxonMobil to acquire its interest in Luberef.

 

SENIOR MANAGEMENT

Sr.No

Name

Designation

1

Moatassim Al Mashouq

Chairman

2

Khalid Al Juraifani

Director

3

Adel Al Dossary

Director

4

Khalid Al Hamed

Director

5

Tariq Al Sudairi 

Director

6

Khalid Al Zamil

Director

7

Salahaddin Dardeer

Chief Executive Officer

8

Mazen Damanhouri

Chief Financial Officer

9

Abdulwasea A Bukhari

Planning Manager

10

Abdulhamid A Jan

Audit Manager

11

Ziad Al Kharboush

Corporate Affairs Manager

12

Abdulmounim F Zaher

Legal Manager

13

Prince Nawaf Al Saud 

Marketing Manager

 

INTERNATIONAL TRADE ACTIVITY MARKETS

Sr.No

Country

Activity

1

United States of America

Import

2

Europe

Import

 

PREMISES

Subject operates from a large suite of offices, warehousing and an oil refinery that are owned and located in the Industrial Area of Jeddah.

 

PAYMENT

No complaints regarding subject’s payments have been reported.

 

ADVERSE DATA

Performance Defaults

:

No record found

Payment Defaults

:

No record found

Adverse Press Coverage

:

No record found

Litigations

:

No record found

Former Business Relationships

:

No record found

 

INVESTIGATOR'S COMMENTS

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

INR 64.93

UK Pound

1

INR 91.50

Euro

1

INR 79.69

SAR

1

INR 17.00

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VAR

 

 

Report Prepared by :

KET

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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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.