MIRA INFORM REPORT

 

 

Report Date :

22.08.2007

 

IDENTIFICATION DETAILS

 

Name :

THE SANKO STEAMSHIP CO LTD

 

 

Registered Office :

Hibiya Kokusai Bldg 2F, 2-2-3 Uchisaiwaicho Chiyodaku Tokyo 100-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2007

 

 

Date of Incorporation :

Aug 1934

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Ocean-going ship owner & operator

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 4183.1 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

THE SANKO STEAMSHIP CO LTD

 

 

REGD NAME

 

Sanko Kisen KK

 

 

MAIN OFFICE

 

Hibiya Kokusai Bldg 2F, 2-2-3 Uchisaiwaicho Chiyodaku Tokyo 100-0011 JAPAN

Tel        : 03-3507-8315

Fax       : 03-3507-8324

URL      : http://www.sankoline.co.jp/

E-Mail address: info@sankoline.co.jp

 

 

ACTIVITIES

 

Ocean-going ship owner & operator

 

 

BRANCHES

 

USA (2), Europe (2), Canada, Brazil, Australia, Manila, Singapore

 

 

OFFICER(S)

 

TAKESHI MATSUI, PRES & CEO                       Goji Morita, v pres

Hisashi Asafuji, s/mgn dir                                   Yukio Aso, dir

Fumio Akai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 109,899 M

PAYMENTS      REGULAR                     CAPITAL           Yen 11,882 M

TREND             STEADY                       WORTH            Yen 23,497 M

STARTED         1934                             EMPLOYES      167

                                                                                   

 

 

 

 

COMMENT

 

OCEAN-GOING SHIP OWNER & OPERATOR.   FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 4,183.1 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established in 1934 as a ship operator on Jan-Korea/China trade.  The firm has since grown into one of the leading ship owners & operators of Japan, operating bulk carriers oil tankers, LPG carriers, and other fleet.  The firm, however, went bankrupt in 1985 from the excessive investment on ships at the time when the shipping markets were in the slump with lack of transportation needs and lower freight rates.  The firm, then, sought for protection from creditors under Corporate Rehabilitation Law.  In Feb 1998, the Law approved the application and the firm came back to operation.  The operating tonnage totals 130 vessels of 10,712,800 DWT, plying worldwide routes.  100 ships of 5,343,422 DWT are scheduled for delivery within next 2/3 years.

           

 

FINANCIAL INFORMATION

 

The firm does not disclose its financials only except the following partial figures.

 

The sales volume for Jan/2006 fiscal term amounted to Yen 109,899, a 16% hike from Yen 94,411 million in the previous term, boosted by the steep rise in shipping markets across the board, backed by explosive transportation demand from China for worldwide destinations.  The recurring profit was posted at Yen 20,355 million and the net profit at Yen 12,746 million, respectively, compared with Yen 12,746 million recurring profit and Yen 9,521 million net profit, respectively, a year ago.

 

For the ended Jan 2007 the recurring profit was projected at Yen 21,000 million and the net profit at Yen 13,000 million, respectively, on a 14% rise in turnover, to Yen 125,000 million.  For the 9 months ending Sept/2006 the firm reported Yen 93,673 million turnover and Yen 8,821 million net profit, respectively.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,183.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Aug 1934

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    950,560 shares

Issued:                          237,640 shares

Sum:                            Yen 11,882.7 million

Major shareholders (%): Resona Bank (5), Sumitomo Corp (5), A Bridge Investment (4), CA-1 Investment Fund

                                    (4), Shinsei Bank (4)

No. of shareholders:       393

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Ship owner & operator of ocean-going bulk carriers, oil tankers, LPG carriers, offshore      rigs, other fleet, comprising of a total 130 ships of 10,712,800 DWT (--100%).

 

100 ships of 5,343,422 DWT are reported on order for delivery within the next 2/3 years.

 

Clients: [Oil companies, trading houses, cargo owners] Royal Dutch Shell, Exxon Mobil, Sojitz Corp, Mitsui & Co, Mitsubishi Corp, Sumitomo Corp, Itochu Corp, other

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Oil companies, ship builders, trading houses] Showa Shell Sekiyu, Marubeni Corp, Sojitz Corp, Sumitomo Corp, Mitsubishi Corp, Kawasaki Shipyard, Namura Shipbuilding, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

           

Bank References

 

Resona Bank (Ohtemachi)

City Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/01/2007

31/01/2006

31/01/2005

31/01/2004

Annual Sales

　

125,000

109,899

94,411

89,944

Recur. Profit

　

21,000

20,355

12,746

-57

Net Profit

　

13,000

12,746

9,521

-138

Total Assets

　

　

68,127

55,241

N/A

Net Worth

　

　

39,083

30,161

23,497

Capital, Paid-Up

　

　

11,882

11,882

11,882

Div.P.Share(¥)

　

　

8,500.00

7,500.00

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

13.74

16.40

4.97

105,716.47

       Current Ratio

 

 

..

..

..

       N.Worth Ratio

 

57.37

54.60

..

       N.Profit/Sales

10.40

11.60

10.08

-0.15

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for 31/01/2007 fiscal term.

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>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.

 

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

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions