MIRA INFORM REPORT

Report No. :	492358
Report Date :	21.02.2018

IDENTIFICATION DETAILS

Name :	SAUDI ARAMCO PRODUCTS TRADING COMPANY (ARAMCO TRADING)
Registered Office :	Al Midra Tower, 3^rd Floor, East Wing, Jubail Road, PO Box 5000, Dhahran 31311
Country :	Saudi Arabia
Date of Incorporation :	20.11.1979
Com. Reg. No.:	2052001749, Dhahran
Legal Form :	Limited Liability Company
Line of Business :	Subject is engaged in the import and export of refined petroleum products.
No. of Employees :	80

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
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

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

SUMMARY

Company Name : SAUDI ARAMCO PRODUCTS TRADING COMPANY (ARAMCO

TRADING)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 20^th November 1979

Commercial Registration Number : 2052001749, Dhahran

Membership Number : 170170

Issued Capital : SR 1,000,000

Paid up Capital : SR 1,000,000

Total Workforce : 80

Activities : Import and export of refined petroleum products

Financial Condition : Undetermined

Payments : Regular

COMPANY NAME

SAUDI ARAMCO PRODUCTS TRADING COMPANY (ARAMCO TRADING)

ADDRESS

Registered & Physical Address

Building : Al Midra Tower, 3^rd Floor, East Wing

Street : Jubail Road

PO Box : 5000

Town : Dhahran 31311

Country : Saudi Arabia

Telephone : (966-13) 8801434 / 8720115 / 8801010 / 8809090 / 8801788 / 8800272 / 8801111

Facsimile : (966-13) 8738190 / 8758484

Email : general@aramcotrading.com / saidhadrami@aramco.com

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Dhahran.

KEY PRINCIPALS

Name Position

Said A Al Hadrami Chief Executive Officer

Mohamed Al Mulim Supply Manager

Ali Lafi Chief Financial Officer

LEGAL FORM & OWNERS

Date of Establishment : 20^th November 1979

Legal Form : Limited Liability Company

Commercial Reg. No. : 2052001749, Dhahran

Membership No. : 170170

Issued Capital : SR 1,000,000

Paid up Capital : SR 1,000,000

Name of Shareholder (s) Percentage

Saudi Aramco Co 100%

Saudi Aramco Compound

Al Dhahran High Street

PO Box: 5000 & 1565

Dhahran 31311

Tel: (966-13) 8754915 / 8756110 / 8747400 / 8770110 / 8730115 / 8720110

Fax: (966-13) 8738490 / 8738190

AFFILIATED COMPANIES

Aramco Overseas Co BV

Schuttersveld 14

Leiden

Netherlands

Aramco Services Co

PO Box: 4535

Houston

Texas 77210

United States of America

Tel: (1-713) 4324000

Aramco Associated Co

16875 JFK Boulevard

Houston

Texas

United States of America

Saudi Refining Inc

W Loop Street

Houston

Texas

United States of America

Saudi Petroleum International Inc

Houston

Texas 77210

United States of America

Tel: (1-713) 4324000

Saudi Petroleum Overseas Ltd

United Kingdom

Vela International Marine Ltd

Liberia

Petron Corp

Philippines

OPERATIONS

Activities: Engaged in the import and export of refined petroleum products.

Subject represents Saudi Aramco's interest in sales and purchases of refined petroleum products such as condensates, naphtha, gasoline, middle distillate fuels, fuel oil nd residual products and bulk petrochemical products.

Subject has agreed to sell undisclosed volumes of the fuel at a premium of about $2.70 a barrel above Middle East quotes for the cargoes, to be loaded from Jubail. That is nearly 30 per cent higher than its current term contracts. Royal Dutch Shell is the likely buyer, although this could not immediately be confirmed.

Aramco is still negotiating the sale of term cargoes to be loaded from the Red Sea port of Rabigh, and may finalise these by year-end.

The company was offering either 45,000-tonne or 65,000-tonne cargo lots for loading from Jubail and Rabigh, with a half-yearly term instead of its usual yearly term.

Traders were surprised at the premium finalised for Saudi's jet fuel term, which they said was too high at 15 to 20 percent more than those agreed by other Middle Eastern refiners.

On 9^th February 2015, Saudi Aramco Products Trading Co signed a US$ 1.1 billion (SR4.13 billion) trade agreement with S-Oil Corp, a refiner based in Seoul, South Korea. By the end of 2015, Saudi Aramco will trade 120,000 tons of paraxylene and 2 million barrels of heavy naphtha in return for 14 million barrels of light oil and 14 million barrels of light naphtha. In January, Saudi Aramco increased its stake in S-Oil to 63.4 percent after purchasing a US$ 2 billion (SR7.5 billion) stake. S-Oil is the third largest oil refiner in South Korea.

Aramco Trading achieved a record trading volume of 1.5 million barrel per day of liquid products, while polymer sales grew to 400 kilotons per annum (KTA). Aramco Trading steadily increased volume from the company system and third parties, coupled with increased blending capabilities

Subject operates a fleet of more than 40 tankers

Import Countries: Europe and the Far East.

Subject has a workforce of 80 employees.

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

National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-13) 8331188

Fax: (966-13) 8336058

Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-13) 8337171

Saudi British Bank

PO Box: 1618

Dammam 31411

Tel: (966-13) 8331553

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

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.53
UK Pound	1	INR 90.13
Euro	1	INR 79.85
SAR	1	INR 17.27

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

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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