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MIRA
INFORM REPORT
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Report No. : |
509788 |
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Report Date : |
22.05.2018 |
IDENTIFICATION DETAILS
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Name : |
EQUATE PETROCHEMICAL CO. KSCC |
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Registered Office : |
Block 9, East Ahmadi, Kuwait |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
04.12.1995 |
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Com. Reg. No.: |
63392 |
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Legal Form : |
Kuwait Shareholding Company (Closed) |
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Line of Business : |
Manufacture of refined petroleum products |
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No. of Employees : |
1,600 |
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 (30.09.2017) |
Current Rating (31.12.2017) |
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Kuwait |
A1 |
A1 |
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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 |
KUWAIT - ECONOMIC OVERVIEW
Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - more than 6% of world reserves. Kuwaiti officials plan to increase production to 4 million barrels of oil equivalent per day by 2020. Petroleum accounts for over half of GDP, 92% of export revenues, and 90% of government income.
In 2015, Kuwait, for the first time in 15 years, realized a budget deficit after decades of high oil prices; in 2016, the deficit grew to 16.5% of GDP. Kuwaiti authorities announced cuts to fuel subsidies in August 2016, provoking outrage among the public and National Assembly, and the Amir dissolved the government for the seventh time in ten years. In 2017 the deficit was reduced to 7.2% of GDP, and the government raised $8 billion by issuing international bonds. Despite Kuwait’s dependence on oil, the government has cushioned itself against the impact of lower oil prices, by saving annually at least 10% of government revenue in the Fund for Future Generations.
Kuwait has failed to diversify its economy or bolster the private sector, because of a poor business climate, a large public sector that employs about 74% of citizens, and an acrimonious relationship between the National Assembly and the executive branch that has stymied most economic reforms. The Kuwaiti Government has made little progress on its long-term economic development plan first passed in 2010. While the government planned to spend up to $104 billion over four years to diversify the economy, attract more investment, and boost private sector participation in the economy, many of the projects did not materialize because of an uncertain political situation or delays in awarding contracts. To increase non-oil revenues, the Kuwaiti Government in August 2017 approved draft bills supporting a Gulf Cooperation Council-wide value added tax scheduled to take effect in 2018
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Source
: CIA |
COMPANY SUMMARY
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COMPANY NAME |
Equate Petrochemical Co. KSCC |
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ADDRESS |
Building |
Street |
Area |
PO Box |
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Building No. 900011 |
Hamad Al Zuwayer Street |
Next to Kuwait National Petroleum Co |
PO Box 100-Ahmadi 61001 |
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TEL/FAX |
Verified Phones: (+965) 189 8888 /
Fax: (+965) 2576 5733 |
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EMAIL/WEBSITE |
Email: premarket@equate.com / ccd@equate.com / Website:
www.equate.com |
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ACTIVITY |
NACE 1920 - Manufacture of refined petroleum products; |
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PRINCIPAL |
Dr. Ramesh
Ramachandran |
Workforce |
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President & CEO |
1,600 |
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LEGAL INFO |
Date Of Est. |
Reg. No. |
Legal Form |
Status |
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04/12/1995 |
63392 |
Kuwait
Shareholding Company (Closed) |
Active |
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CAPITAL |
CURRENCY |
AMOUNT |
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USD |
700,000,000 |
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COMPANY INFORMATION
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IDENTIFICATION |
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CO. NAME |
Equate Petrochemical Co. KSCC |
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TRADEMARK |
Equate |
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ALSO KNOWN NAME (S) |
Equate Petrochemical Co.
K.S.C.C / Equate Petrochemical Company / Equate Group |
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BUILDING |
Building No. 900011 |
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STREET |
Hamad Al Zuwayer Street |
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AREA |
Next to Kuwait National
Petroleum Co |
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POSTAL ADDRESS |
PO Box 100-Ahmadi 61001 |
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CITY |
Ahmadi |
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COUNTRY |
Kuwait |
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TELEPHONE |
(965) 189 8888 ext. 5767
(Treasury Specialist) / ext. 2232 (Accountant) / ext. 4891 (Accountant) /
ext. 2101 (Cost Accountant) |
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FAX |
(+965) 2576 5733 |
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VERIFIED EMAIL |
premarket@equate.com /
ccd@equate.com / alfarefh@equate.com |
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WEBSITE |
www.equate.com |
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BUSINESS HOURS |
DAYS |
OFFICE HOURS |
BREAK TIME |
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Sun-Thu |
09:00-17:00 |
13:00-13:30 |
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REGISTERED ADDRESS |
Block 9, East Ahmadi,
Kuwait |
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FORMER ADDRESS |
Olympia Towers, 6th
Floor, Salem Al Mubarak Street, Ras Al Ard - Block 2, PO Box: 4733 Safat
13048 |
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SENIOR PERSONNEL |
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MANAGEMENT |
NAME |
POSITION |
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Dr. Ramesh Ramachandran |
President & CEO |
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Board of Directors Waleed Al-Bader Raja Zeidan Dabbous Al-Dabbous Sheikh Mubarak Al-Sabah Nayef Al-Enezi Luis Antuna Luciano Poli Javier Constante Dr. Salman Alajmi Sulaiman Al-Marzouqi Management Dr. Ramesh Ramachandran Naser Aldousari Tareq Al-Kandari Arnd Thomas Dawood Al-Abduljalil Naif Al Smairi Trevor Moderi Shakeel Ahmed |
Chairman of the Board Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Chief Executive Officer Senior Vice President Vice President for
Technical Services Vice President
Operations Chief Financial Officer Treasury Specialist Cost Accountant Accountant |
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WORKFORCE |
NO. OF EMPLOYEES |
PERIOD |
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1,600 |
05.2018 |
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1,496 98,000 (DowDuPont Inc.) |
01.2017 01.2017 |
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FINANCIAL SUMMARY |
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REVENUE |
31/12/2017 |
31/12/2016 |
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USD 4,374,000,000 |
USD 3,645,000,000 |
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NET PROFIT / (LOSS) |
31/12/2017 |
31/12/2016 |
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USD 771,000,000 |
USD 415,000,000 |
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STOCK/INVENTORIES |
USD 232,000,000 as of 31/12/2017 |
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NOTES |
The following consolidated financial statements as at 31/12/2017,
showed:
31/12/2017 31/12/2016
(in
millions of USD) ASSETS Property, plant and equipment 1,851 1,762 Goodwill
1,689 1,689
Intangible assets
365 417 Deferred tax assets
48 33
Deferred charges and other assets
591 297 Loans to related parties
237 384 Non-current assets 4,781 4,582 Inventories
232 229
Loans to related parties
147 140 Due from related parties
156 49 Trade and other receivables 775 688 Deferred charges and other assets
25 23 Cash and bank balances
1,774 1,542 Current
assets 3,109 2,671 Total assets
7,890 7,253 Equity and Liabilities Equity Share capital
700 700
Treasury shares
(450) (450) Statutory reserve
350 350 Retained earnings
771 415 Remeasurement of retirement benefit obligation
(59) (52) Foreign currency translation reserve
45 6 Total equity
1,357 969 Liabilities Loans and borrowings
4,715 4,672 Deferred income
333 368
Deferred tax liabilities
230 252 Retirement benefit obligation
416 310 Long term
incentives 4 4 Non-current liabilities
5,698 5,606 Current liabilities Long term incentives
5 5 Deferred income
32 32 Due to related parties
194 277 Trade and
other payables 604 364 Current liabilities
835 678 Total liabilities
6,533 6,284 TOTAL EQUITY AND LIABILITIES
7,890 7,253 INCOME STATEMENT Sales
4,374 3,645 Cost
of sales (3,311) (3,042) Gross profit
1,063 603 Management fee 7 9 Reservation right fees
32 32 General,
administrative and selling expenses (99)
(93) Other income
8 6
Foreign exchange gain
(5) (4) Profit from operation
1,006 553 Finance income
33 36 Finance costs
(187) (122)
Profit before statutory contributions and Board of Directors’ remuneration
852 467 Contribution to KFAS
(8) (4) Contribution
to Zakat (5) (3) Tax on subsidiaries
(68) (45) Net profit for the year
771 415 Other comprehensive
income Items that will not be reclassified subsequently to profit or loss Remeasurements of retirement benefit obligation
(7) (8) Exchange differences on translating foreign operations
39 1 Other comprehensive expenses for the year
(32) (7) Total comprehensive income for the year
803 408 |
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FISCAL YEAR-END |
31 December |
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LEGAL STATUS |
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INCORPORATION |
04/12/1995 |
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REGISTRATION NO. |
C.R. NUMBER |
ISSUED BY |
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63392 |
Kuwait Chamber of
Commerce & Industry |
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OTHER REGISTRATION
NO. |
KCCI Membership No.:
48090 (expiry date: 21/01/2019) |
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AUTHORISED CAPITAL |
AMOUNT |
CURRENCY |
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700,000,000 |
USD |
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PAID-UP CAPITAL |
AMOUNT |
CURRENCY |
|
700,000,000 |
USD |
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LEGAL FORM |
Kuwait Shareholding Company (Closed) |
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BUSINESS HISTORY |
In June 1993, Petrochemical
Industries Company KSC (PIC) and Union Carbide Corporation signed a
memorandum of understanding (MoU). In July 1994 Fluor Daniel, USA was
appointed project management consultant. The Equate management team was
formed in January 1995 and site preparation work started in March 1995. Between March and
October 1995 US$685 million engineering, procurement and construction (EPC)
contracts were awarded to Brown & Root, USA, Foster Wheeler Italiana,
Italy and Snamprogetti, Italy for the Equate plant. The power substation was
activated in April 1997 and in June 1997 the first boiler was started up. In
October 1997 the first feed of ethane to the furnace took place. The US$2,000
million Equate complex in Shuaiba was inaugurated on 12 November 1997 by Amir
Shaikh Jaber Al Ahmad Al Sabah. Equate experienced
startup difficulties in 1998, its first full year of operations. After
correcting defects in warrantied equipment that had hampered its performance,
Equate improved production and earnings in 1999. J. Travis Spoede
(employee of Union Carbide) was Chief Financial Officer of Equate
Petrochemical Company from 1997 to 1999. Former President &
Chief Executive Officer, Charles R. Kline was appointed in 1994, and retired
on 31 October2001. He was succeeded by Hamad Al Terkait, who joined Equate in
1998, and was appointed CEO on 1 November 2001. Equate Petrochemical
Company was established on 4 December 1995 as a joint venture between PIC
(45%), Dow Chemical Company (45%), and Boubyan Petrochemicals Company (10%).
In 2005, QPIC acquired a share of 6% in Equate, reducing the ownership of PIC
(42.5%), Dow (42.5%) and Boubyan (9%). |
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STATUS |
Active |
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SHAREHOLDERS |
NAME |
PERCENTAGE |
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1. Petrochemical Industries Company KSC (PIC) South of Sabahia Area PO Box 1084 Safat 13011 Kuwait Telephone: (+965) 2321 1000 Fax : (+965) 2321 1171 Email : media@pic.com.kw Website : www.pic.com.kw 2. Dow Europe Holding B.V. Herbert H. Dowweg 5 Hoek, 4542 NM The Netherlands 3. Boubyan Petrochemical Industries
Co. (can also be spelt
"Bubyan") Public shareholding
company established in June 1995
PIC holds 10% of Boubyan Petrochemical Company 4. Qurain Petrochemicals Industries Company Petrochemicals Industries
Company Building Exit 213, Off
Fahaheel Express Highway South
Sabahiya PO Box 29299 Safat 13153 Kuwait City Telephone: (+965) 2321
1907 Fax : (+965) 2362 7288 Ultimate Parent Company Petrochemical Industries Company (PIC). With world-scale manufacturing
facilities around the world, PIC manufactures and markets chemicals that are
the essential building blocks for countless products that people use every
day and that serve diversified markets worldwide. Whether our products help
increase crop yields to feed a growing world or are used to produce
insulation that increases a home's energy efficiency, our materials are helping
to improve quality of life. Based in Kuwait, our company was founded in 1963
as the first chemical fertilizer complex of its kind in the region. Today,
PIC is a subsidiary of the Kuwait Petroleum Corporation (KPC) and is a
petrochemical industry leader in Kuwait and throughout the Middle East, and a
growing leader worldwide. In addition to manufacturing and marketing
fertilizers, olefins and aromatics in Kuwait, we participate in multiple
joint ventures that also produce and market chemicals both locally and
internationally. Ultimate Parent Company DowDuPont Inc. 2030 Dow Center Midland Mi 48674-2030 USA Telephone: (+1 517) 636
1000 DowDuPont Inc. is an American company formed after the
merger of Dow Chemical and DuPont on August 31, 2017. It is the world's
largest chemical company in terms of sales. Within 18 months the company will
be split into three publicly-traded companies which will focus on the
following: agriculture, materials science, and specialty products. The
agriculture division is named Corteva Agriscience, the materials science
division is named Dow, and the specialty products division is named DuPont.
Andrew Liveris is the chairman of the board of directors, and Edward Breen is
the CEO. The merger has been reported to be worth an estimated $130 billion.
In March 2018, it was announced that Jeff Fettig will become executive
chairman of DowDuPont on July 1, 2018, and Jim Fitterling will become CEO of
Dow Chemical on April 1, 2018. On December 11, 2015,
DuPont announced a merger with Dow Chemical Company, in an all-stock
transaction. The combined company, DowDuPont, will have an estimated value of
$130 billion, being equally held by both companies’ shareholders, while also
maintaining its two headquarters. The merger of the two largest U.S. chemical
companies closed on August 31, 2017. Both companies' boards
of directors decided that following the merger, DowDuPont would pursue a
separation into three independent, publicly-traded companies: an agriculture,
a materials science, and a specialty products company. The agriculture
business--Corteva Agriscience would unite Dow and DuPont’s seed and crop
protection unit, with an approximate revenue of $16 billion. The materials
science segment--to be called Dow--would consist of DuPont’s Performance
Materials unit, together with Dow’s Performance Plastics, Materials and
Chemicals, Infrastructure and Consumer Solutions, but exclude DOW's
Electronic Materials business. Combined revenue for this branch totals an
estimated $51 billion. Finally, the specialty products unit--to be called
DuPont--would include DuPont’s Nutrition & Health, Industrial
Biosciences, Safety & Protection and Electronics & Communications, as
well as Dow’s aforementioned Electronic Materials business. Combined revenue
for Specialty Products will total approximately $12 billion. Advisory Committees were
established for each of the businesses. DuPont CEO Ed Breen would lead the
Agriculture and Specialty Products Committees, and Dow CEO Andrew Liveris
would lead the Materials Science Committee. These Committees were intended to
oversee their respective businesses, and would work with both CEOs on the
scheduled separation of the businesses’ standalone entities.[13] Announced in
February 2018, DowDuPont's agriculture division is named Corteva Agriscience,
its materials science division is named Dow, and its specialty products
division is named DuPont. |
42.5% 42.5% 9% 6% |
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OPERATION |
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BANKERS |
1. Commercial Bank Of
Kuwait (CBK) Mubarak Al Kabir Street P.O. Box : 2861 Safat 13029 Telephone: (+965) 2241 1001 Fax
: (+965) 2245 0150 2. National Bank Of
Kuwait (NBK) Abdullah Al Salem Street PO Box 95 Safat 13001 Telephone: (+965) 2242 2011 Fax
: (+965) 2246 4156 3. Gulf Bank Mubarak Al Kabir Street PO Box 3200 Safat 13032 Telephone: (+965) 2244 9501 Fax
: (+965) 2244 5212 4. Citibank Next to Al Aali Mall Seef district Manama Bahrain Telephone: (+973) 1758 8588 Fax
: (+973) 1758 8399 |
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AUDITORS |
KPMG
Safi Al-Mutawa & Partners Al
Hamra Tower, 25th Floor Abdulaziz
Al Saqr Street PO
Box: 24, Safat 13001 Kuwait Telephone:
(+965) 2228 7000 Fax : (+965) 2228 7444 |
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ACTIVITY CODE
(NACE) |
NACE 1920 - Manufacture
of refined petroleum products; |
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LINE OF BUSINESS |
Production and supply of
various petrochemical products - ethylene glycol and a broad variety of
linear low and high density polyethylene. Ethylene glycol is a key
intermediate for polyester fibre and container resin. Polyethylene is used in
a broad variety of packaging and agricultural film and container molding
applications. Subject’s products
include: - Polyethylene - Styrene Monomer - Ethylene Glycol - Polypropylene - Paraxylene Uses ethane feedstock
from the nearby National Petroleum Company's LPG plant. Subject operates the
following department : Equate Material Management, engaged in
the purchasing of materials. Production Capacity : Ethylene : 850,000
tonnes per year Polyethylene : 1,000,000
tonnes per year ISO 9002 certification On 17 August 2000 the
British Standard Institution Auditors (BSI) officially issued ISO 9002
certification for Equate's Ethylene Glycol and Polypropylene
manufacturing facilities. The term ISO is used to refer to the International
Organisation for Standardisation, which is a worldwide federation of national
standards bodies from 130 countries. Equate's products are
sold through Equate Marketing Company, Bahrain. |
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IMPORT FROM |
Worldwide. |
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EXPORT TO |
Worldwide, mainly to UK,
the Netherlands, Belgium, Sweden, Poland, Germany, France, Portugal, Spain,
Switzerland, Italy, Turkey, Greece, Cyprus, India, UAE, Lebanon, Jordan,
Egypt, Tunisia, Algeria, Morocco, Pakistan, Sri Lanka, Malaysia, Thailand,
Vietnam, Bangladesh, China, Taiwan, Hong Kong, Philippines, Singapore and
Indonesia.. |
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FACILITIES |
Owned premises
comprising administrative offices located at the heading address as well as a
manufacturing unit located elsewhere in Kuwait (see "Branch Office"
below). Equate Group has overseas offices in USA, Germany, UAE and China. Equate operates a world
class petrochemical complex at the Shuaiba Industrial Area. The
plant in this complex was commissioned late 1997. |
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BRANCH OFFICES |
Equate Complex Shuaiba Industrial Area PO Box 9729 Al Ahmadi 61008 Kuwait Telephone: (+965) 2431
2568 / 2434 3666 Fax : (+965) 2431 2559 / 2431 2560 |
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RELATED COMPANIES |
Subsidiaries 1. Equate Petrochemical B.V.
100% the Netherlands Activity: Holding Company 2. MEGlobal Canada ULC
100% Canada Activity: Manufacturing and
sales of EG 3. Equate Sukuk SPC Limited
100% UAE Activity: Special Purpose
Company Held through Equate Petrochemical B.V. 4. MEGlobal B.V. the Netherlands Activity: Holding Company Sole Shareholder: Equate
Petrochemical B.V. 5. MEGlobal Americas Inc USA Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 6. MEGlobal Asia Limited China Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 7. MEGlobal International FZE UAE Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 8. MEGlobal Mexico S.A. de C.V. Mexico Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 9. MEGlobal Trading Group China Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 10.MEGlobal Europe GmbH Switzerland Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 11.MEGlobal Comercio Do Brasil Ltda Brazil Activity: Marketing and
distribution of EG Sole Shareholder: Equate
Petrochemical B.V. 12.Equipolymers GmbH Germany Activity: Manufacturing and
sales of PET Sole Shareholder: Equate
Petrochemical B.V. 13.Equipolymers Srl Italy Activity: Marketing of
PET Sole Shareholder: Equate
Petrochemical B.V. 14.Alberta & Orient Glycol Company ULC Canada Activity: Manufacturing and
sales of EG Affiliated companies of Petrochemical Industries Company (KSC),
subject's shareholder : Subsidiary Piccan Holding Inc. (PICCAN) Canada Est: 14 June 2004 Associates 1. EQUATE Marketing Co. E.C.
49.9%
Bahrain 2. The Kuwait Styrene Company KSCC Petroleum Industries Company
(PIC) Building South Sabahia Area PO Box 4733 Safat 13048 Telephone: (+965) 2385 1405 Fax : (+965) 2385 1404 C.R. No.: 104444 KCCI Membership No.: 100641 3. Kuwait Olefins Company K.S.C.C.
42.5% PO Box 1084 Kuwait city 13011 Kuwait Telephone: (+965) 2321 1000 Fax
: (+965) 2326 0820 4. Gulf Petrochemical Industries Co.
33.33% B.S.C. Building No. 51 Road No. 1401, Government
Avenue Umm Al Baidh Area, Sitra
Industrial Area PO Box 26730 Manama Bahrain Telephone: (+973) 1773
1777 Fax : (+973) 1773 1047 E-Mail : gpic@gpic.com Website : www.gpic.com C.R. No.: 10210-1 5. Kuwait Aramotics Company K.S.C.C. (KARO) Kuwait 6. Kuwait Aromatics Company (KARO) PO Box 1084 Safat 13011 Telephone: (965) 2321
1147 Fax : (965) 2321 1141 Date of Reg.: 16/01/2005 C.R. No.: 101900 KCCI Membership No.: 92521 Affiliated companies of The Dow Chemical Company in the region : Associates 1. Dow Chemical IMEA GmbH - Business Center Emaar Square, Building 6, Level 3 Sheikh Zayed Road P.O. Box 7893 Dubai, United Arab Emirates Telephone : (+971 4) 453 7000 Fax : (+971 4) 453 7117 2. Dow Chemical Kuwait B.V. Al Raya Centre, No. 2 Level 27 Abdulaziz Hamad Al-Saqar St., P.O. Box 994 Safat, 13010 Kuwait Telephone : (+965) 2299 7949 Fax : (+965) 2299 7960 3. Arabian Chemical Company (Latex) Ltd (ACC (Latex) Ltd) PO Box 1049 Jeddah 21431 Telephone: (+966 12) 667 2222 Fax : (+966 12) 660 9028 Established 1995 4. Arabian Chemical Company (Polystyrene) Ltd PO Box 5728 Jeddah 21432 Telephone: (+966 12) 667 4818 Fax : (+966 12) 660 9028 (ACC (Polystyrene) Ltd) joint venture with Dow
Chemical Co 5. Saudi Acrylic Monomer Company New Akaria Building, Tower 2 Sitteen Street Malaz Area P.O Box 26707 Riyadh 11496 Telephone: (+966 11) 476 7166 Fax : (+966 11) 477 0898 6. Sadara Chemical Company Jubail Industrial Area II P.O.Box No.11811 Jubail 31961 Saudi Arabia Website : www.sadara.com C.R. no. : 2055014427 7. Equate Marketing Company E.C. Manama Bahrain 8. The Kuwait Olefins Company KSC(C) PO Box 1084 Kuwait city 13011 Kuwait Telephone: (+965) 2321 1000 Fax : (+965) 2326 0820 9. The Kuwait Styrene Company Petroleum Industries Company
(PIC) Building South Sabahia Area PO Box 4733 Safat 13048 Telephone: (+965) 2385 1405 Fax : (+965) 2385 1404 C.R. No.: 104444 KCCI Membership No.: 100641 10.Arabian Chemical Insulation Company FZCO Jebel Ali Free Zone P.O. Box 18667 / 51167 Dubai United Arab Emirates Telephone: (+971 4) 343 7266 Fax : (+971 4) 343 7145 11.MEGlobal International FZE Bulding 5WB, 6th Floor Dubai Airport Free Zone
(DAFZA) P.O. Box 293615 Dubai United Arab Emirates Telephone: (+971 4) 292 3999 Fax : (+971 4) 292 3911 |
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FINANCIAL INFORMATION |
|
|
CURRENCY |
USD |
|
NOTES |
The following
consolidated balance sheets as at 31 December 2017 applies to subject’s
ultimate parent company, DowDuPont
Inc.: 31/12/2017 31/12/2016 (in millions of
USD) Current Assets Cash and cash
equivalents (variable interest
entities restricted - 2017:
$107; 2016: $75) 13,438 6,607 Marketable
securities 956 — Accounts and notes
receivable: Trade (net of allowance
for doubtful receivables - 2017:
$127; 2016: $110) 11,314 4,666 Other 5,579 4,312 Inventories 16,992 7,363 Other current
assets 1,614 711 Total current assets 49,893 23,659 Investments Investment in
nonconsolidated affiliates 5,336 3,747 Other investments
(investments carried at fair value
- 2017: $1,512; 2016:
$1,959) 2,564 2,969 Noncurrent receivables 680 708 Total investments 8,580 7,424 Property Property 73,304 57,438 Less accumulated depreciation 37,057 33,952 Net property (variable
interest entities restricted -
2017: $907; 2016: $961) 36,247 23,486 Other Assets Goodwill 59,527 15,272 Other intangible
assets (net of accumulated
amortization – 2017: $5,550; 2016:
$4,295) 33,274 6,026 Deferred income tax
assets 1,869 3,079 Deferred charges and
other assets 2,774 565 Total other
assets 97,444 24,942 Total Assets 192,164 79,511 Liabilities and Equity Current Liabilities Notes payable 1,948 272 Long-term debt due
within o ne year 2,067 635 Accounts payable: Trade 9,134 4,519 Other 3,727 2,097 Income taxes
payable 843 600 Accrued and other
current liabilities 8,409 4,481 Total current
liabilities 26,128 12,604 Long-Term Debt
(variable interest entities
nonrecourse - 2017: $249; 2016:
$330) 30,056 20,456 Other Noncurrent
Liabilities Deferred income tax liabilities 6,266 923 Pension and other
postretirement benefits -
noncurrent 18,581 11,375 Asbestos-related
liabilities - noncurrent 1,237 1,364 Other noncurrent
obligations 7,969 5,560 Total other noncurrent
liabilities 34,053 19,222 Stockholders' Equity Common stock (2017:
authorized 5,000,000,000 shares
of $0.01 par value each, issued
2,341,455,518 shares; 2016:
authorized 1,500,000,000 shares
of $2.50 par value each, issued 1,242,794,836) 23 3,107 Additional paid-in
capital 81,257 4,262 Retained earnings 29,211 30,338 Accumulated other comprehensive
loss (8,972) (9,822) Unearned ESOP
shares (189) (239) Treasury stock at cost
(2017: 14,123,049 shares;
2016: 31,661,501
shares) (1,000) (1,659) DowDuPont's
stockholders' equity 100,330 25,987 Noncontrolling
interests 1,597 1,242 Total equity 101,927 27,229 Total Liabilities and Equity 192,164 79,511 Consolidated Statements
of Income 31/12/2017 31/12/2016 (in millions of USD) Net sales 62,484 48,158
Cost of sales
50,414 37,640 Research and development expenses
2,110 1,584 Selling, general and administrative expenses
4,021 2,956
Amortization of intangibles
1,013 544 Restructuring, goodwill impairment and asset related charges - net
3,280 595 Integration and separation costs
1,101 349 Asbestos-related charge
— 1,113 Equity in earnings of nonconsolidated affiliates
764 442 Sundry income (expense) – net
966 1,452 Interest expense and amortization of debt discount
1,082 858 Income from continuing operations before income taxes
1,193 4,413 Provision (Credit) for income taxes on continuing operations
(476) 9 Income from continuing operations, net of tax
1,669 4,404 Loss from discontinued operations, net of tax
(77) — Net income
1,592 4,404 Net income attributable to noncontrolling interests
132 86 Net income attributable to DowDuPont Inc. 1,460 4,318
Preferred stock dividends
— 340 Net income available for DowDuPont Inc. common stockholders
1,460 3,978 |
SPECIAL REMARKS |
|
|
INTERVIEWED |
Shakeel Ahmed
(Accountant). |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.96 |
|
|
1 |
INR 91.88 |
|
Euro |
1 |
INR 80.26 |
|
KWD |
1 |
INR 225.27 |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.