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MIRA INFORM REPORT
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Report No. : |
490721 |
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Report Date : |
08.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SAUDI KAYAN PETROCHEMICAL COMPANY (SAUDI KAYAN) |
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Registered Office : |
Jubail Industrial City, PO Box 10302 & 10040, Jubail 31961 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
February 2006 |
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Com. Reg. No.: |
2055008450, Jubail |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Subject is engaged in the manufacture of specialized chemicals, including aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate. |
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No. of Employees : |
100 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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Status : |
Good |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
SUMMARY
Company Name :
SAUDI KAYAN PETROCHEMICAL COMPANY (SAUDI KAYAN)
Country of Origin :
Saudi Arabia
Legal Form :
Joint Stock Company
Registration Date :
February 2006
Commercial Registration Number :
2055008450, Jubail
Issued Capital :
SR 15,000,000,000
Paid up Capital :
SR 15,000,000,000
Total Workforce :
100
Activities :
Manufacture of specialised chemicals
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
SAUDI KAYAN PETROCHEMICAL COMPANY (SAUDI KAYAN)
ADDRESS
Registered &
Physical Address
Location : Jubail
Industrial City
PO Box :
10302 & 10040
Town : Jubail 31961
Country : Saudi Arabia
Telephone : (966-13) 3473333
/ 3593000 / 3477200 / 3563300 / 3563530
Facsimile : (966-13)
3476666 / 3593111
Email : hejifi@saudikayan.sabic.com
Premises
Subject operates from a medium sized suite of offices that are rented and
located in the Industrial Area of Jubail.
KEY
PRINCIPALS
Name Position
Omar Bin Abdullah Al Amoudi Chairman
Abdulaziz A Al Habardi Director
Mansour Al Kharboush Director
Mohammed A Al Ghamdi Director
Fahad M Al Dawood Director
Tariq Al Abdulhadi Director
Yahya E Al Ansari Director
Nasser A Abanmi President
Ayed H Al Haider Board
Secretary
Mahdi Habab Al Bogami General
Manager
LEGAL
FORM & OWNERS
Date of Establishment : February 2006
Legal Form : Joint Stock
Company
Commercial Reg. No. : 2055008450,
Jubail
Issued Capital : SR 15,000,000,000
Paid up Capital : SR 15,000,000,000
Name of
Shareholder (s) Percentage
Saudi Basic Industries Corporation (SABIC)
35%
Al Kayan Petrochemical Company (Kayan) 20%
Members of the general public & private investors 45%
AFFILIATED
COMPANIES
Saudi Butanol Company Ltd
OPERATIONS
Activities: Subject is engaged in the manufacture of specialized chemicals, including aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate.
Subject has a manufacturing complex in Jubail Industrial City with annual capacity of approximately six million tons, including: aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate. This is in addition to ethylene, propylene, polypropylene, ethylene glycol, butene-1 and many specialty products produced locally for the first time as well as other petrochemical products.
Operating Trend: Steady
Subject has a workforce of 100 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR 000’s)
Balance Sheet
31/12/17
31/12/16
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 32,754,054 34,140,903
Intangible assets 222,869 238,381
Investments in an associate and advances 303,005 318,330
Other non-current financial assets 219,952 270,540
TOTAL NON-CURRENT
ASSETS 33,499,880
34,968,154
CURRENT ASSETS
Inventories 1,286,060 1,500,979
Trade receivables 2,556,844 2,557,103
Prepayments 107,047 101,526
Other current financial assets 347,460 515,775
Cash and cash equivalents 2,513,999 1,387,001
TOTAL CURRENT
ASSETS 6,811,410
6,062,384
TOTAL ASSETS 40,311,290
41,030,538
EQUITY AND
LIABILITIES
EQUITY
Share capital 15,000,000 15,000,000
Statutory reserve 49,408 49,408
Other components of equity 620,874 620,874
Accumulated losses (1,762,236) (2,418,937)
TOTAL EQUITY 13,908,046
13,251,345
LIABILITIES
NON-CURRENT
LIABILITIES
Term loans 19,812,633 21,184,258
Subordinated loans from a shareholder 2,675,837 2,602,863
Employee benefits 564,372 479,843
Other non-current financial liability - 19,409
TOTAL NON-CURRENT LIABILITIES 23,052,842
24,286,373
CURRENT LIABILITIES
Current portion of term loans 1,600,087 1,761,845
Trade payables and accruals 1,255,622 1,447,195
Other current financial liabilities 369,052 185,024
Zakat provision 125,641 98,756
TOTAL CURRENT
LIABILITIES 3,350,402
3,492,820
TOTAL LIABILITIES 26,403,244
27,779,193
TOTAL EQUITY AND
LIABILITIES 40,311,290
41,030,538
Income Statement
Sales 9,983,926 8,608,817
Cost of sales (7,582,919) (6,803,499)
Gross profit 2,401,007 1,805,318
Selling and distribution expenses (203,938) (217,109)
General and administrative expenses (566,958) (529,013)
Operating profit 1,630,111 1,059,196
Share in net results of an associate 49,477 35,951
Financial income 84,134 44,267
Other (expenses) income (61,085) (22,275)
Financial charges (910,335) (868,366)
Income before Zakat 792,302 248,773
Zakat (124,128) (96,716)
Net profit for the year 668,174 152,057
Local sources consider subject’s financial condition to be Good.
BANKERS
Al Rajhi Banking & Investment Corporation
King Saud Street
PO Box: 176
Dammam 31411
Tel: (966-13) 8338387 / 8346189
Fax: (966-13) 8323843
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
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
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Indian Rupees |
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US Dollar |
1 |
INR 64.14 |
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1 |
INR 89.50 |
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Euro |
1 |
INR 79.43 |
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SAR |
1 |
INR 17.14 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.