MIRA
INFORM REPORT
|
Report Date : |
04.08.2007 |
IDENTIFICATION
DETAILS
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Name : |
TENARIS GLOBAL
SERVICES S.A. |
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Registered Office : |
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Country : |
Uruguay |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
22.11.2000 |
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Legal Form : |
Private Stock Corporation |
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Line of Business : |
Import / export, wholesale trade and distribution of steel and sidero-metallurgical products,
iron and steel tubes, etc. |
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 : |
USD 1.000.000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company's Style
TENARIS GLOBAL
SERVICES S.A.
Trade Name
Same
Trading Address
Town :
11200
Telephone :
(598-2)903 9091
Fax :
(598-2)908 1607
Country :
BACKGROUND INFORMATION & BUSINESS
PROFILE
LEGAL STRUCTURE
-
Legal
status : Private stock corporation
(societe anonyme), incorporated under the
regulation of the Chapter #47 of the Law #
16.060 of Investment
Companies
-
Date
of Incorporation : 22.11.2000
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Public
& Gen. Commercial Registry :
18.12.2000, # 13.164
-
Subsequent
bylaw alterations : 27.08.2002,
07.04.2003
HISTORICAL : It was initially set up under the style of ABELUZ S.A, and later it
was renamed as TENARIS GLOBAL SERVICES S.A. on 07.04.2003
CAPITAL STRUCTURE & OWNERSHIP : (figures
in $, Uruguayan pesos)
AUTHORIZED
NOMINAL CAPITAL : $ 1.000.000.000
ISSUED
CAPITAL : $ 488.540.472
PAID-UP
CAPITAL : $ 488.540.472
Authorized capital
is divided into bearer and ordinary shares of common stock $ 1.= par value. It
is a privately-owned company whose shares are no traded on the Stock Exchange,
and whose controlling shareholder is
TENARIS S.A. (GRUPO TECHINT), A Luxembourg-incorporated company which is
the multinational industrial conglomerate controlling the steel and
siderometallurgical corporations DALMINE S.p.A., of Italy, SIDERCA, of
Argentina, and TAMSA/Tubos de Acero de Mexico S.A. de C.V.,, of Mexico.
MANAGEMENT : Managing Director
Guillermo MESERI
No negative occurrences on subject's
principals are recorded.
TYPE OF BUSINESS
: TRADER - IMPORTER - WHOLESALER
MAIN BUSINESS LINE
: STEEL & SIDERO-METALLURGICAL PRODUCTS
PRINCIPAL ACTIVITIES: Subject's core
business is the import/export, wholesale trade and distribution of steel and
sidero-metallurgical products, iron and steel tubes, etc. for the account and
on behalf of the TENARIS group.
The company sells its products worldwide,
specially to the TENARIS Group subsidiaries all over the world, mainly in
.
Its main international customers are:
Algoma Tubes Inc.; Colmena Conduit Ltda.; Confab Industrial S.A.; Confab
Trading N.V.; Dalmine S.p.A.; Exiros S.A.; Exito IT S.R.L.; Metalmecanica S.A.;
NKK Tubes KK ; S.C. Silcontub S.A.; Siat S.A.; Siderca S.A.; Cocominter S.A.;
Tecpecuador S.A.; Tubos de Acero de Mexico S.A. de C.V.; Texas Pipe Threaders
Co.; Tenaris Qingdao Steel Pipe Ltd.; Tubos del Caribe Ltda.; Finma S.A.I.F.,
etc.
·
Company Size : Moderate-sized
·
Business trend : Stable
·
Present situation :
Operating normally
·
Outlook :
Favourable
·
Organization : Average. No
major problems observed.
·
Reputation : well-known
company of good reputation. An active company in its line. Good market
position.
·
Management standard: The management
consists of well-known businessmen of good repute, and with years
of experience in related fields. Traditional
methods of management with good forward
planning, and well defined corporate
policy
SALES & TRADING DETAILS
·
Annual Sales : USD 3.040.000.000
(FY 2006)
USD 2.000.000.000 (FY 2005)
·
Sales trend : stable
·
Selling method : 100 % wholesale
·
Selling Term : 20 % cash, 80 %
on a 30-day open acct. credit basis
·
Sales Seasonality : stable throughout the year
·
Distribution channels & points of sale
: Sales are direct to the P.O.S. through its own sales people
·
Sales target : Sells to
industrial and manufacturing sectors
·
Sales branches : Nil
·
Overseas agencies, branches or
representative offices: Nil
·
Market share : It is considered
to be of certain importance within its market segment.
·
New products or services: Under study
·
Market situation : competitive
·
Advertising means : Specialized publications
Purchases : Overseas (imports):
100 %
Imports from : Argentina, Mexico, Brazil, Japan, South
Korea, PR China, etc.
Imports in USD : 1.000.000
Terms imports : L/C, CAD terms, drafts over 90 to 120 days, etc.
STAFF :
20
BANKERS :
Citibank N.A.
Credit
BankBoston Uruguay S.A. (Banco Itau)
INSURERS : Banco de
Seguros del Estado,
Royal & SunAlliance Seguros Uruguay S.A.
TANGIBLE FIXED ASSETS, INVESTMENTS, ETC.
PHYSICAL ASSET HOLDINGS : No properties.
Premises are leased
Physical inspection of premises:
·
condition :
modern
·
equipment & facilities :
adequate
·
location :
subject's premises are located in an urban commercial district
·
access ways :
adequate
·
parking space : No
·
works under construction : No
·
works under project :
No
V.A.T. Reg.# 21/436905/0013
RELATED COMPANIES/SHAREHOLDINGS : as wholly-owned
subsidiaries operate:
TENARIS GLOBAL SERVICES BV The
TENARIS GLOBAL SERVICES LLC USA 100 %
TENARIS GLOBAL SERVICES (BVI) LTD. BVI 100 %
TENARIS GLOBAL SERVICES (CANADA) INC. CANADA 100
%
TENARIS GLOBAL SERVICES
TENARIS GLOBAL SERVICES PANAMA S.A. PANAMA 100
%
TENARIS GLOBAL SERVICES DE BOLIVIA SRL BOLIVIA 1 %
SOCOMINTER LTDA CHILE 99 %
SOCOMINTER
TENARIS GLOBAL SERVICES FAR EAST LTD. SINGAPORE 100 %
TENARIS GLOBAL SERVICES ECUADOR S.A. ECUADOR 100
%
SOCIEDAD INDUSTRIAL PUNTANA S.A. ARGENTINA 97,5 %
TENARIS CONFAB HASTES DE BOMBEIO SA BRAZIL 51 %
EXIROS AR S.A. ARGENTINA 25 %
SIDERCA S.A.I.C. ARGENTINA 2,5 %
METALMECANICA S.A.
METALCENTRO
INFORMATION SYSTEMS & TECHNOLOGY SA
OPERADORA ELECTRICA S.A.
TENARIS GLOBAL SERVICES (
TENARIS GLOBAL SERVICES JAPAN KK JAPAN 100 %
TENARIS GLOBAL SERVICES (
TENARIS GLOBAL SERVICES KASAKHSTAN KASAJSTAN 100 %
TENARIS GLOBAL SERVICES
TUBMAN INTERNATIONAL LTD.
TUBMAN HOLDINGS (
S.C. SILCONTUB
EXIROS
TENARIS GLOBAL SERVICES (
TENARIS FINANCIAL SERVICES S.A.
TENARIS GLOBAL SERVICES S.A.E.
TENARIS GLOBAL SERVICES PANAMA S.A. Suc.
CREDIT STANDING
BANKING RECORD : Banks reported
properly managed checking accounts (local currency and USD), also foreign trade
operations, collections of bills of exchange, negotiation of LC's. and credit
lines in USD for imports until high 5 to low 6 figures. Local currency working
capital loans and secured credit facilities for receivables discounting until
mid 6 figures, with good experience reported to date. Securities: Accts.
receivable & inventories.
Good credit
history information and banker's opinion.
No negative information as of reporting
day
TRADE REFERENCES SURVEY :
(in $, Uruguayan pesos)
|
Supplier |
Supplies |
Suppliess |
Supplies |
Supplies |
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Known since |
Years |
Years |
Years |
Years |
|
Latest |
Nov/2007 |
Non/2007 |
Non/2007 |
Nov/2007 |
|
Latest |
$ 78.132 |
$ 72.000 |
$ 87.122 |
$ 75.108 |
|
Highest |
$ 82.535 |
$ 79.000 |
$ 92.335 |
$ 84.315 |
|
Buying terms |
30-day O/A |
30-day O/A |
30-day O/A |
30-day O/A |
|
Paying record |
PROMPT |
PROMPT |
PROMPT |
PROMPT |
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NSF checks |
NO |
NO |
NO |
NO |
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Delayed payments |
NO |
NO |
NO |
NO |
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Non-payments |
NO |
NO |
NO |
NO |
|
Experience |
GOOD |
GOOD |
GOOD |
GOOD |
|
Rating |
GOOD |
GOOD |
GOOD |
GOOD |
PAYMENT ANALYSIS
·
Type of suppliers :
local trade & service suppliers
·
Payment patterns : pays within
30 days of billing
·
Commercial morality : Good bill-paying habits - pays accts. within agreed
terms
·
Repayment capacity : Wide
·
Negative occurrences
& facts check : No defaults, delinquencies,
legal suits, judgements, collection
claims,
protested items, returned checks or
other detrimental record or adverse
references are traced against the subject.
·
Past experience : In files since 1987. Good track record
Maximum credit figure reported: USD 250.000
FINANCIAL STANDING
Balance sheets as of .............. (in $, Uruguayan pesos)
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ASSETS |
31.12.2006 |
31.12.2005 |
|
Available Funds (cash & Banks) |
2,226,551,201 |
250,139,692 |
|
Temporary cash Investments |
284,151,655 |
917,437,703 |
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Accounts Receivable |
27,345,797,856 |
1,772,853,000 |
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Sundry Debtors |
1,374,676,056 |
16,949,892,219 |
|
Inventories |
2,107,836,353 |
1,140,098,902 |
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CURRENT ASSETS |
33,339,013,121 |
21,030,421,516 |
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Long Term Investments |
5,889,823,968 |
2,703,269,895 |
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Fixed Assets |
274,080,753 |
253,336,260 |
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TOTAL ASSETS |
39,502,917,842 |
23,987,027,671 |
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LIABILITIES |
|
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Suppliers |
26,215,375,696 |
13,672,268,235 |
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Bank Loans |
2,593,700 |
1,901,042 |
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Sundry Creditors |
1,150,070,224 |
465,569,692 |
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CURRENT LIABILITIES |
27,368,039,620 |
14,139,738,969 |
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Long-term Debt |
0 |
3,989,082 |
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TOTAL DEBT |
27,368,039,620 |
14,143,728,051 |
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STOCKHOLDERS' EQUITY |
12,134,878,222 |
9,843,299,620 |
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TOTAL |
39,502,917,842 |
23,987,027,671 |
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NET SALES |
76,306,248,873 |
10,147,678,000 |
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Gross Profit |
8,239,038,750 |
5,548,390,063 |
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Operating Income |
6,816,846,399 |
4,668,319,892 |
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Net Income |
8,483,724,352 |
5,883,939,505 |
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BALANCE SHEET
ANALYSIS |
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Current Ratio |
1.22 |
1.49 |
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Acid-Test Ratio |
1.14 |
1.41 |
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Indebtedness Level |
225.5% |
143.7% |
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Capitalization |
30.7% |
41.0% |
|
Average Collection Period (Days) |
129 |
63 |
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Average Payment period (Days) |
139 |
1070 |
|
Inventory Turnover rate |
11.1 |
89.2 |
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Sales-to-Assets ratio |
1.93 |
0.42 |
|
Sales-to-Liabilities ratio |
278.82% |
71.75% |
|
Return on Equity (ROE) |
69.91% |
59.78% |
|
Return on Sales |
11.12% |
57.98% |
|
Return on Assets |
21.48% |
24.53% |
|
Z Score (Insolvency Predictor) |
3.24728 |
2.17057 |
FINAL OPINION
We are reporting
upon a moderate-sized, well credited and known company which enjoys a good and well
diversified portfolio of clients. It is considered to be a moderately
successful business operation and a well organized company, and it operates on
a satisfactory scale. Its level of activity is good and it is well managed by
an experienced, reliable and honest staff, therefore, its future outlook is
estimated to be favourable. It is also a financially sound company, and its
payments and contractual commitments are duly met, so no objections are noted
upon its current trading position. Therefore, business connections with this
company are suitable, and moderate credits are recommended.
CREDIT QUALITY ANALYSIS
·
Level of riskiness : Standard (
·
Credit soundness : Good
·
Credit appraisal : Recommended
·
Potential credit limit : USD 1.000.000
·
Assessment : It is considered
to be an initial credit limit
·
Credit surveillance : Subject to regular review & supervision
Exchange Rate USD 1 : $ 24
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 |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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%)