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MIRA
INFORM REPORT
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Report Date : |
02.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
JORDANIAN ELECTRIC POWER COMPANY LTD (JEPCO) |
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Registered Office : |
Ragadan Building,
Mecca Street, PO Box 618, Amman 11118 |
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Country : |
Jordan |
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Financials (as on) : |
31.12.2007 |
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Year of Establishment: |
1938 |
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Com. Reg. No.: |
70, Amman |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Electricity Distribution |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 2,500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name : JORDANIAN ELECTRIC POWER COMPANY LTD (JEPCO)
Country of Origin : Jordan
Legal Form : Limited Liability Company
Start Date : 1938
Registration Date : 12th December 1962
Commercial Registration Number : 70, Amman
Issued Capital : JD 70,000,000
Paid up Capital : JD 66,000,000
Total Workforce : 2,250
Activities : Electricity distribution
Financial Condition : Good
Payments : Nothing detrimental uncovered
Recommended Credit Limit : US$ 2,500,000
COMPANY NAME
JORDANIAN ELECTRIC POWER
COMPANY LTD (JEPCO)
ADDRESS
Registered & Physical Address
Building : Ragadan Building
Street : Mecca Street
PO Box : 618
Town : Amman 11118
Country : Jordan
Telephone : (962-6) 4648411 / 4636381 / 5503600
Facsimile : (962-6) 4648482 / 4648467 / 5503618
/ 5503619
Email : jepco@jepco.com.jo
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Amman.
Branch Office
(s)
Location Description
·
Jabal Alhusain Office
premises
Amman
Tel : (962-6) 5690345
·
Alquaismeh Office
premises
Amman
Tel : (962-6) 4765391
·
Swaileh Office
premises
Amman
Tel : (962-6) 5350891
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Swaifeyeh Office
premises
Amman
Tel : (962-6) 5821025
·
King Hussain
Street Office
premises
Zarqa
Tel : (962-5) 3982170
·
Aljahed Street Office
premises
Madaba
Tel : (962-5) 3244160
KEY PRINCIPALS
Name Position
·
Issam Mohamed
Bdair Chairman
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Marwan Madi Deputy
Chairman
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Marwan Bushnaq Director
General
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Fouad Qattan Director
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Wafa El Dajani Director
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Yaser Al Omari Director
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Fares E. El
Mousher Director
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Basem Al
Azhari Director
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Othman Bdeir Director
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Yaseen
Talhouni Director
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Bakhit El
Bakhit Director
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Izzat
Jukhandar Administration
Manager
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Ayman
Abushanab Finance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1938, however
subject was registered on 12th December 1962
Legal Form :
Public Shareholding Company
- PSC
Commercial Reg. No. : 70, Amman
Issued Capital : JD 70,000,000
Paid up Capital : JD 66,000,000
Name of Shareholder (s) Percentage
·
Jordan
Electric Co PLC 50%
Amman
·
Jordan Central
Electric Co 50%
Zarqa
OPERATIONS
Activities: Jepco has a government concession to
distribute electricity in Amman and the central region of Jordan
until 2012. It buys its power from the state’s National Electric Power
Co Ltd (Nepco) and the government sets its tariffs to ensure the company does
not reap excessive profits.
Jepco was established in 1938 with the mission of lighting up the
streets of Amman with electric power instead of the gas lamps that were used at
the time. In 1947, Jepco received its first 60-year exclusive concession from
the government. A second concession with a life of 50 years was granted to
Jepco in 1962 soon after the merging of Jepco with the Central Jordan Electric
Power Company. This concession granted Jepco the exclusive right to generate,
transmit and distribute electric power to the concession area.
In 1978, Jepco stopped its power generation and became limited to
transmitting and distributing energy throughout the concession area. This was
due to a new legislation, which made the newly formed National Electric Power
Company (Nepco) the sole generator of electricity in Jordan.
Import
Countries: Europe and the
United States of America
Subject has a
workforce of approximately 2,250 employees.
FINANCIAL DATA
Balance Sheet 31/12/07 31/12/06 31/12/05
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Assets |
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Cash on Hand & at Banks |
11,825,810 |
7,377,734 |
26,942,237 |
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Account Receivables, Net |
56,737,460 |
51,354,775 |
39,712,126 |
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Inventory |
26,948,766 |
14,375,224 |
10,965,514 |
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Total Current Assets |
95,962,298 |
82,513,919 |
88,690,278 |
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Long Term Investments |
3,795,419 |
2,869,875 |
3,491,307 |
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Fixed Assets, Net |
153,192,405 |
132,026,197 |
116,837,380 |
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Projects in Progress |
1,829,100 |
2,169,349 |
1,709,302 |
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Total Fixed Assets |
155,021,505 |
134,195,546 |
118,546,682 |
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Other Assets |
107,512,452 |
96,287,933 |
86,144,139 |
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Total Assets |
362,291,674 |
315,867,273 |
296,872,406 |
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Liabilities & Owners Equity |
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Liabilities |
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Accounts and Notes Payable |
81,038,429 |
58,150,327 |
64,776,530 |
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Credit Banks |
9,812,873 |
3,430,055 |
187,488 |
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Short Term Loans |
2,358,067 |
4,001,516 |
5,045,504 |
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Total Current Liabilities |
152,911,951 |
121,754,436 |
119,217,984 |
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Long Term Loans & Notes Payable |
3,728,361 |
5,572,566 |
8,940,530 |
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Other Liabilities |
109,719,046 |
97,469,855 |
86,301,390 |
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Total Liabilities |
266,359,358 |
224,796,857 |
214,459,904 |
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Shareholders Equity (JD) |
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Authorized Capital |
70,000,000 |
70,000,000 |
70,000,000 |
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Subscribed Capital |
66,000,000 |
60,000,000 |
50,000,000 |
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Paid-in Capital |
66,000,000 |
60,000,000 |
50,000,000 |
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Compulsory Reserves |
15,849,604 |
14,540,071 |
12,696,474 |
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Voluntary Reserve |
1,789,453 |
1,789,453 |
1,858,072 |
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Proposed Cash Dividends |
7,920,000 |
7,200,000 |
6,000,000 |
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Accumulated Change in Fair Value |
2,125,189 |
1,177,990 |
1,926,575 |
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Retained Earnings |
2,248,070 |
6,362,902 |
9,931,381 |
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Total Shareholders Equity |
95,932,316 |
91,070,416 |
82,412,502 |
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Total Liabilities & Shareholders Equity |
362,291,674 |
315,867,273 |
296,872,406 |
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Income Statement
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Operating Revenues |
303,775,473 |
268,545,840 |
232,312,855 |
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Operating Expenses |
260,923,725 |
222,256,125 |
189,215,985 |
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Gross Profit |
42,851,748 |
46,289,715 |
43,096,870 |
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General and Administrative Expenses |
18,848,025 |
17,490,234 |
16,584,102 |
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Depreciation (period) |
11,033,042 |
10,172,204 |
10,088,497 |
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Other Operating Expenses |
21,054,936 |
19,348,420 |
16,980,458 |
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Net Operating Income |
2,948,787 |
9,451,061 |
9,532,310 |
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Other Revenues |
11,227,909 |
9,972,357 |
4,919,536 |
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Other Expenses |
29,820 |
48,086 |
374,861 |
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Income Before Interest & Tax |
14,146,876 |
19,375,332 |
14,076,985 |
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Interest Expenses |
1,051,548 |
939,357 |
1,185,697 |
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Net Income before Tax |
13,095,328 |
18,435,975 |
12,891,288 |
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Income Tax (Period) |
1,564,679 |
2,468,757 |
1,970,751 |
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Universities and Research Train Fees |
360,948 |
505,719 |
351,012 |
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Board of Directors Remuneration |
55,000 |
55,000 |
55,000 |
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Net Income |
11,114,701 |
15,406,499 |
10,514,525 |
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Net Income Pertains to Shareholders |
11,114,701 |
15,406,499 |
10,514,525 |
BANKERS
·
Arab Bank Plc
Shmeisani Branch
PO Box : 950545 & 950544
Amman 11195
Tel : (962-6) 5607231 / 5607115
Fax : (962-6) 5606793 / 5606830
Email : secretariat@arabbank.com.jo
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Jordan
National Bank
PO Box : 1578
Amman
Tel : (962-6) 4612391
PAYMENT HISTORY
No complaints regarding
subject’s payments have been reported.
GENERAL COMMENTS
Jordanian Electric
Power Company Ltd (Jepco) was established in 1938 and has a government
concession to distribute electricity in Amman and the central region of Jordan
until 2012. It supplies electricity to about 64% of the total electricity
consumers in the country.
The company is run
in a professional manner and in recent years has undertaken a process of
modernisation and efficiency measures that are beginning to take effect.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.52 |
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UK Pound |
1 |
Rs.75.08 |
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Euro |
1 |
Rs.63.72 |
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. |
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%)