MIRA
INFORM REPORT
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Report Date : |
04.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
MODEC INC |
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Registered Office : |
Mitsui Seimei Bunkyo Kohinata Bldg, 4-2-8 Kohinata Bunkyoku Tokyo
112-0006 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun 1987 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Engineering firm of offshore oil
& gas production facilities |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 2560.6 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
MODEC INC
REGD NAME
Mitsui Kaiyo Kaihatsu KK
MAIN OFFICE
Mitsui Seimei Bunkyo Kohinata Bldg, 4-2-8 Kohinata Bunkyoku Tokyo
112-0006 JAPAN
Tel: 03-5800-6081
Fax: 03-5800-6060
URL : http://www.modec.com/
E-Mail address: general@modec.com
ACTIVITIES
Engineering firm of offshore oil & gas production
facilities
BRANCHES
Houston, Rio de Janeiro, Mexico City, Vietnam, Singapore,
Jakarta, Belawan, Darwin, Africa, other (--affiliates, project sites)
CHIEF EXEC
KENJI YAMADA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 99,149 M
PAYMENTS REGULAR CAPITAL Yen 12,391 M
TREND STEADY WORTH Yen 42,222 M
STARTED 1987 EMPLOYES 189
COMMENT
ENGINEERING OF OFFSHORE OIL & GAS PRODUCTIN FACILITIES. FINANCIAL SITUATION CONSIDERED FAIR AND
GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,560.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject company was established jointly by Mitsui
Engineering & Shipbuilding and Mitsui & Co as Engineering Firm with
design, construction and leasing of offshore oil & gas drilling facilities
as mainline. World’s second largest mfr
of such facilities based on strength of original technology for floating body-method. Has good & abundant experiences overseas. Operations cover
USA, Asia, Africa, Oceania, etc. In
Dec/2006, acquired FMC Technologies Floating Systems, a manufacturer of
moorings for offshore plants, for US$54.4 million, or about Yen 6,300 million.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 99,149 million, a 38.4% up from Yen 71,614 million in the previous term. Orders received rose 7.7% to Yen 179,353 million. Ship construction up 51.0% to Yen 83,016 million, completing construction for Amerada Hess Oveng TLP and Okume/Ebano TLP. Charter & operation was up 7.0% to Yen 15,154 million, providing services to 8 projects (see OPERATION). The recurring profit was posted at Yen 4,664 million and the net profit at Yen 3,305 million, respectively, compared with Yen 5,408 million recurring profit and Yen 3,213 million net profit, respectively, a year ago. Net profit decrease is referred to the employment of asset-impairment accounting system.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 6,400 million and the net profit at Yen 4,200 million, on a
10.9% rise in turnover, to Yen 110,000 million. Sales will expand
thanks to increased order backlog of marine vessels. Actively participating in bidding for projects in Brazil, other.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 2,560.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1987
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 102,868,000
shares
Issued: 37,408,000
shares
Sum: Yen
12,391 million
Major shareholders (%): Mitsui Engineering &
Shipbuilding*(50.1), Mitsui & Co (6.5), Goldman Sachs International (6.5),
Master Trust Bank of Japan T (2.4), Japan Trustee Services Bank (1.8), Bank of
New York (Europe) Ltd (1.5), Sojitz Corp (1.0), Morgan Stanley & Co Int’l
Ltd (1.0), City Bank London Global Wind Scottish Equitable (1.0), Evergreen
Hominines Ltd Trustee Acct (0.9)
No. of shareholders: 4,395
*.. Major mfr in shipbuilding & heavy electric machinery,
Tokyo, founded 1937, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 44,384
million, turnover Yen 568,484 million, recurring profit Yen 12,566 million, net profit Yen 5,671 million, total
assets Yen 706,310 million, net worth Yen 120,821 million, employees 11,488,
pres Takao Motoyama
Listed on the S/Exchange (s) of: Tokyo
Managements: Kenji Yamada, pres & CEO; Nobuhiro Yaji, v
pres; Mitsuhiro Mokumoto, s/mgn dir; Masaki Kawase, dir; Naomasa Kosaka, dir;
Shashank Karve, dir; Takao Sunami, dir; Saburo Sakamaki, dir; Tamiyoshi
Iwasaki, dir; Yasuo Asama, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Modec Int’l LLC, other (Tot 19 as of Dec/06)
OPERATION
Activities: Engineering firm specializing in offshore oil &
gas drilling facilities:
Breakdown of sales: Vessel construction and engineering works
(77%), leasing, chartering and operations (20%), others (3%).
Overseas operations 100%: Asia 11.6%; Africa 5.6%; Oceania
22.6%; Latin America 45.7%; N America 14.5%).
Projects providing vessel leasing, chartering &
operations services are:
Conoco/Phillips Elang/Kakatus EPSO* (East Timor/Australia)
Pemex Cantarell FSO (Mexico)
CLJOC Su Tu Den EPSO (Vietnam)
MEDCO/MOECO Langsa FPSO (Indonesia)
Santos Mutineer-Exeter FPO (Australia)
ONR Baobab FPSO (Cote d’Ivoire)
PEARL Jasmine FPSO (Thailand)
SHELL Bijupira-Salema (Brazil)
*.. FPSO is short for Floating Production, Storage and
Offloading.
Clients: [Oil drillers] Clients are as above listed, but not
confined to them.
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, shipbuilders] FMC Technologies Inc (USA), other
shipbuilders in China, Singapore, Korea, etc.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
SMBC (H/O)
Chuo Mitsui Trust Bank (Nihombashi)
Relations: Satisfactory
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FINANCES (Consolidated
in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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99,149 |
71,614 |
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Cost of Sales |
89,767 |
63,053 |
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GROSS PROFIT |
9,381 |
8,560 |
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Selling & Adm Costs |
5,887 |
4,665 |
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OPERATING PROFIT |
3,494 |
3,895 |
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Non-Operating P/L |
1,170 |
1,513 |
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RECURRING PROFIT |
4,664 |
5,408 |
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NET PROFIT |
3,305 |
3,213 |
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BALANCE SHEET |
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Cash |
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28,827 |
26,061 |
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Receivables |
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10,641 |
16,409 |
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Inventory |
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2,518 |
2,237 |
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Securities, Marketable |
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Other Current Assets |
32,996 |
4,125 |
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TOTAL CURRENT ASSETS |
74,982 |
48,832 |
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Property & Equipment |
3,928 |
7,094 |
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Intangibles |
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15,119 |
5,246 |
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Investments, Other Fixed Assets |
29,321 |
43,526 |
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TOTAL ASSETS |
123,350 |
104,698 |
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Payables |
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16,265 |
18,889 |
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Short-Term Bank Loans |
34,172 |
27,960 |
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Other Current Liabs |
13,807 |
9,582 |
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TOTAL CURRENT LIABS |
64,244 |
56,431 |
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Debentures |
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Long-Term Bank Loans |
12,822 |
6,478 |
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Reserve for Retirement Allw |
314 |
233 |
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Other Debts |
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3,747 |
1,905 |
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TOTAL LIABILITIES |
81,127 |
65,047 |
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MINORITY INTERESTS |
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1,807 |
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Common
stock |
12,391 |
12,391 |
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Additional
paid-in capital |
13,121 |
13,121 |
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Retained
earnings |
13,319 |
10,434 |
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Evaluation
p/l on investments/securities |
780 |
865 |
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Others |
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2,611 |
1,032 |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
42,222 |
37,843 |
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TOTAL EQUITIES |
123,350 |
104,698 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash Flows
from Operating Activities |
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11,716 |
11,878 |
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Cash
Flows from Investment Activities |
20,043 |
-21,549 |
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Cash
Flows from Financing Activities |
11,867 |
19,003 |
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Cash,
Bank Deposits at the Term End |
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25,061 |
14,061 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2006 |
31/12/2005 |
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Net
Worth (S/Holders' Equity) |
42,222 |
37,843 |
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Current
Ratio (%) |
116.71 |
86.53 |
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Net
Worth Ratio (%) |
34.23 |
36.14 |
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Recurring
Profit Ratio (%) |
4.70 |
7.55 |
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Net
Profit Ratio (%) |
3.33 |
4.49 |
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Return
On Equity (%) |
7.83 |
8.49 |
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RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)