to download the complete report - GulfBase.com

PriceSR57.5Pricing / Valuation as on May 27, 2009Mkt capSR0.9bn ($230.3mn)Sh. outstanding15.0mnKey statistics52 week range H/L (SR) 80.8/37.3Avg daily turnover (mn) SR US$3m 38.75 10.3512m 41.84 11.17Raw Beta 6m 3yr1.32 1.05Reuters2030.SEBloombergSARCO ABPrice perform (%) 1M 3M 12MAbsolute (%) 30 34 (18)Market (%) 6 32 (39)Sector (%) 11 28 (45)Website: www almasafi com.saValuation multiples2007 2008 TTMP/E (x) 133.2 8.8 NMP/B (x) 4.3 1.5 NMP/Sales (x) 105.6 NM NMDiv yield (%) 0.4 1.4 NMMULTI-INVESTMENTSaudi Arabia Refin.Also known asSARCOThe Saudi Arabia Refineries Company (SARCO), established in Jeddah in 1959,invests in commercial and industrial projects in and outside Saudi Arabia. Thecompany principally invests in petroleum refining, transportation services, andhydraulic projects.Company financials2006 2007 2008 8M-08YoY*(%)CAGR(%)(06-08)Net Revenues SRmn 7 14 1 9 - NMEBITDA SRmn 5 11 (2) 7 - NMNet Income SRmn 4 11 99 8 - 426.4Assets SRmn 498 351 609 229 - 10.6Equity SRmn 483 331 597 212 - 11.1Total Debt SRmn - 8 0 0 - NACash & Equiv SRmn 6 1 43 47 - 159.7EBITDA Mgn % 69.7 84.4 (251.5) 81.4 - -Net Mgn % 54.1 79.3 15465.1 90.5 - -ROE % 0.6 2.6 21.3 3.7 - -ROA % 0.6 2.5 20.6 3.4 - -Div Payout % NA 55.9 15.2 94.3 - -EPS SR 0.9 1.8 16.7 0.5 - NMBVPS SR 120.8 55.1 99.5 14.1 - (9.3)Source: Company, NCBC Research * The comparable 8M figure for FY2008 are not availableSegment-wise business analysisProduct segment H109 Geographic H109%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.19MSCI Saudi (domestic –small cap) 1.10Free float (%)Free float 100.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)10080604020-SARCO (RHS)HH Mete'eb Bin Abdul Aziz Al Saud 7.3HH Prince Khalid Turki Abdul Aziz 5.0Turki Al SaudSource: Company, NCBC Research• Business brief: Currently, SARCO owns stakes in Arabian Salfonates Company(34%), Arabian Tankers Company (27%), Saudi Industrial Investment Group (3.33%),Tabuk Cement and Riyad Bank. SARCO generates income from: (i) its stakes in theearnings of other companies; and (ii) capital gains on the sale of its investments.• Financials: SARCO reported revenues of SR8.7mn and net profit of SR7.9mn during8M-08. The company also recorded impressive net margin of 90.5% while EBITDAmargin was 81.4%. The company paid a dividend of SR0.5 per share, with a dividendpayout of 94.3%. EPS for 8M-08 was SR0.5.• Recent developments: In April 2009, SARCO reported net profit of SR0.08 mn for1Q 09 compared to a net profit of SR98.6 mn in 1Q 08. In December 2008, thecompany increased its capital from SR60mn to SR150mn, through an issue of 2.5bonus shares for every share held.Source: NCBC ResearchJUNE 2009SAUDI ARABIA REFINERIES CO208