|
|
|
MIRA INFORM REPORT
|
Report No. : |
484586 |
|
Report Date : |
06.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
S-OIL
CORPORATION |
|
|
|
|
Registered Office : |
192, Baekbeom-ro, Mapo-gu, Seoul, Korea 04196 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
30.09.2017 |
|
|
|
|
Date of Incorporation : |
06.01.1976 |
|
|
|
|
Com. Reg. No.: |
116-81-36743 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
· Petroleum Refineries · Gasoline, Kerosene, Light Oil, Lubricants, Asphalt, Petrochemicals, LPG |
|
|
|
|
No. of Employees : |
3,258 |
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+ |
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 (30.06.2017) |
Current Rating (30.09.2017) |
|
South Korea |
A1 |
A1 |
|
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 |
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 2016, the economy experienced slow growth – 2%-3% per year - due to sluggish domestic consumption, a drop in foreign demand for South Korean exports, increased competition from regional rivals such as China and Japan, and declining investment. The administration in 2016 faced the challenge of balancing heavy reliance on exports with domestic restructuring efforts in the country’s shipbuilding and shipping industries.
The South Korean economy's short-term challenges include a potential loss of consumer confidence due to issues with its mobile phone industry, as well as uncertainty stemming from a tumultuous domestic political situation. In the long-term, South Korea must deal with a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise more than 40% of GDP. South Korea’s low overall unemployment rate masks problems with high youth unemployment, low worker productivity, high labor underutilization, and low female participation in the workforce. The government has tried to implement structural reforms, but continues to face significant headwind from vested interests. Finally, the country could eventually face an unprecedented financial burden in the event the unification of the Korean Peninsula were to occur.
|
Source
: CIA |
Basic
Information
|
Company Name |
S-OIL
CORPORATION |
|
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 |
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 |
Othman Al-Ghamdi |
|
Date of Birth |
10/20/1967 |
|
Title |
President & CEO |
|
Nationality |
Saudi Arabian |
Profiles
|
Capital (KRW) |
291,511,797,500 |
|||||||||||||||
|
Employees |
3,258 |
|||||||||||||||
|
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 KEB 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 |
|
|||||||||||||||
|
Company History |
01/06/1976 Incorporated as Korea-Iran
Petroleum Co., Ltd., 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 10/23/2001 Increased the authorized shares
to 240,000,000 shares from 120,000,000 shares 12/2001 Implemented 2-for-1 stock split 12/01/2001 Split off the par value to 2,500
KRW from 5,000 KRW 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 11/30/2004 Increased capital to
291,511,797,500 KRW from 289,936,882,500 KRW 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) |
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
President & CEO |
Othman Al-Ghamdi |
Saudi Arabian |
10/20/1967 |
09/05/2016 |
|
Director |
S.A. Al-Hadrami |
Saudi Arabian |
11/28/1962 |
03/20/2015 |
|
Director |
N.A. Al-Nuaim |
Saudi Arabian |
02/02/1969 |
03/18/2016 |
|
Director |
S.M. Al-Hereagi |
Saudi Arabian |
11/28/1966 |
03/18/2016 |
|
Director |
A.I. Al-Saadan |
Saudi Arabian |
11/28/1962 |
03/18/2016 |
|
Outside Director |
A.A. Al-Talhah |
Korean |
05/10/1948 |
03/20/2015 |
|
Outside Director |
Lee Sung-Won |
Korean |
02/18/1932 |
03/20/2015 |
|
Outside Director |
Kim Cheol-Soo |
Korean |
01/26/1941 |
03/20/2015 |
|
Outside Director |
Hong Seok-Woo |
Korean |
06/17/1953 |
03/20/2015 |
|
Outside Director / Auditor |
Shin Eui-Soon |
Korean |
06/09/1950 |
03/20/2015 |
|
Outside Director / Auditor |
Y.A. Al-Zaid |
Saudi Arabian |
07/20/1946 |
03/18/2016 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
15,077,007,000,000 |
14,393,363,000,000 |
861,392,000,000 |
|
|
2016 |
16,321,843,000,000 |
13,950,676,000,000 |
1,207,083,000,000 |
|
2015 |
17,890,272,000,000 |
10,784,946,000,000 |
628,136,000,000 |
|
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 |
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 |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total Assets |
14,393,363 |
13,950,676 |
10,784,946 |
|
Current
Assets |
7,104,798 |
7,973,051 |
5,688,480 |
|
Cash & Cash Equivalents |
402,172 |
766,091 |
199,904 |
|
Trade Receivables |
1,352,030 |
1,154,608 |
1,030,881 |
|
Other Receivables |
291,436 |
181,249 |
253,207 |
|
Current Financial Instruments |
2,678,114 |
3,433,772 |
2,497,628 |
|
Derivatives |
126 |
2,078 |
17,302 |
|
Inventories |
2,367,562 |
2,423,440 |
1,598,710 |
|
Other Current Assets |
13,358 |
11,813 |
16,709 |
|
Deferred Income Taxes |
|
|
74,139 |
|
Non-Current
Assets |
7,288,565 |
5,977,625 |
5,096,466 |
|
Other Receivables |
63,514 |
64,895 |
72,007 |
|
Other Financial Assets |
49,427 |
49,308 |
50,154 |
|
Investment_Related Companies |
26,331 |
26,291 |
26,153 |
|
Tangibles |
7,045,574 |
5,710,804 |
4,730,793 |
|
Intangibles |
49,567 |
54,462 |
47,243 |
|
Other Non-Current Assets |
42,769 |
43,731 |
170,116 |
|
Confirmed
Salaries |
11,383 |
28,134 |
|
|
Total
Liabilities |
7,949,997 |
7,565,429 |
5,403,055 |
|
Current
Liabilities |
4,486,353 |
4,832,781 |
3,222,157 |
|
Trade Payables |
767,593 |
1,140,725 |
589,528 |
|
Other Payables |
1,287,224 |
1,022,911 |
911,229 |
|
Short-Term Borrowings |
2,100,924 |
2,145,876 |
1,587,942 |
|
Derivatives |
6,173 |
50,873 |
11,081 |
|
Accrued Income Tax |
128,037 |
348,255 |
7,073 |
|
Provisions |
5,704 |
1,803 |
4,678 |
|
Deferred Income Tax Credit |
25,497 |
27,433 |
28,016 |
|
Other Current Liabilities |
165,201 |
94,905 |
82,610 |
|
Non-Current
Liabilities |
3,463,644 |
2,732,648 |
2,180,898 |
|
Other Payables |
31,305 |
27,036 |
23,581 |
|
Long-Term Borrowings |
3,252,620 |
2,563,585 |
2,007,255 |
|
Provision for Severance &
Retirement |
|
|
4,523 |
|
Deferred Income Tax Credit |
179,719 |
142,027 |
145,539 |
|
Capital
Stock |
291,512 |
291,512 |
291,512 |
|
Capital Surplus |
379,190 |
379,190 |
379,190 |
|
Installments |
977,439 |
977,313 |
977,959 |
|
Treasury Stock |
-1,876 |
-1,876 |
-1,876 |
|
Profit Surplus |
4,797,101 |
4,739,108 |
3,735,106 |
|
Total Equity |
6,443,366 |
6,385,247 |
5,381,891 |
|
Liab. & Shareholder’s Equity |
14,393,363 |
13,950,676 |
10,784,946 |
|
Income Statement |
|||
|
Unit : Million Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
15,077,007 |
16,321,843 |
17,890,272 |
|
Cost
of Sold Goods |
13,574,385 |
14,020,892 |
16,438,773 |
|
Gross
Profit |
1,502,622 |
2,300,951 |
1,451,499 |
|
Selling
& Admin. Expenses |
498,661 |
684,062 |
633,895 |
|
Operating
Income |
1,003,961 |
1,616,889 |
817,604 |
|
Other
Operating Income |
258,927 |
495,344 |
491,316 |
|
Other
Operating Expenses |
231,273 |
475,037 |
392,871 |
|
Finance
Income |
211,256 |
184,999 |
145,960 |
|
Finance
Expenses |
122,438 |
244,830 |
253,480 |
|
Income
Before Taxes |
1,120,433 |
1,577,365 |
808,529 |
|
Income
Taxes Expenses |
259,041 |
370,282 |
180,393 |
|
Net
Income |
861,392 |
1,207,083 |
628,136 |
|
Cash Flows |
|||
|
Unit : Million Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating
Activities Cash Flows |
518,422 |
1,721,984 |
2,475,536 |
|
Cash Flows from Operating |
934,619 |
1,711,592 |
2,586,176 |
|
Interests Received |
50,886 |
44,016 |
30,576 |
|
Interests Paid |
-80,831 |
-82,982 |
-57,116 |
|
Income Taxes |
-393,574 |
39,635 |
-89,700 |
|
Dividends Received |
7,322 |
9,723 |
5,600 |
|
Cash
Flows from Investing |
-698,072 |
-1,966,919 |
-2,801,853 |
|
Cash Inflow from Investing |
|
54,472 |
87,318 |
|
Cash Outflows for Investing |
|
-2,021,391 |
-2,889,171 |
|
Cash
Flows from Financing |
-184,256 |
811,125 |
-184,101 |
|
Cash Inflows from Financing |
|
1,032,310 |
698,919 |
|
Cash Outflows from Financing |
|
-221,185 |
-883,020 |
|
Increase/Decrease
in Cash |
-363,906 |
566,190 |
-510,418 |
|
Cash at
the Beginning of Year |
766,091 |
199,904 |
710,321 |
|
Cash at
the End of Year |
402,172 |
766,091 |
199,904 |
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 |
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) (18.0% held by the subject company) SAUDI ARAMCO PRODUCTS TRADING COMPANY ARAMCO ASIA JAPAN |
|
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. (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) |
Sales
by Region (Activity & Markets)
|
Sales/ Unit :Mil KRW |
09/2017 |
2016 |
2015 |
|
Export |
8,731,027 |
9,237,566 |
10,380,552 |
|
Domestic |
6,345,980 |
7,084,277 |
7,509,720 |
|
Total |
15,077,007 |
16,321,843 |
17,890,272 |
The Subject exports
to China and USA.
Court
Action
No.
News
Clipping
-------------
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.38 |
|
|
1 |
INR 86.02 |
|
Euro |
1 |
INR 76.50 |
|
KRW |
1 |
INR 0.060 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
NIT |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.