MIRA
INFORM REPORT
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Report Date : |
28.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SOHAR ALUMINIUM COMPANY LLC |
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Registered Office : |
Al Harthy Complex, PO Box 60 & 111, Mina Al Fanal 118 |
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Country : |
Sultanate of Oman |
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Date of Incorporation : |
September 2004 |
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Com. Reg. No.: |
1/76671/6 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject will operate an Aluminium Smelter |
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$ 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name :
SOHAR ALUMINIUM COMPANY LLC
Country of Origin :
Sultanate of Oman
Legal Form :
Limited Liability Company - LLC
Registration Date :
September 2004
Commercial Registration Number : 1/76671/6
Issued Capital :
RO 10,000,000
Paid up Capital :
RO 10,000,000
Total Workforce :
40
Line of Business :
Subject will operate an aluminium smelter
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
COMPANY NAME
SOHAR ALUMINIUM COMPANY LLC
ADDRESS
Registered & Physical Address
Location : Al Harthy Complex
PO Box : 60 & 111
Town : Mina Al
Fanal 118
Country : Sultanate of
Oman
Telephone : (968-24) 573800
Facsimile : (968-24) 573801
Mobile :
(968-99) 319702
Email : info@sohar-aluminium.com
Premises
Subject operates from a medium sized suite of offices that are rented
and located in the Central Business Area of Mina Al Fanal.
KEY PRINCIPALS
· Tony
Kinsman Chief
Executive Officer
· Michel
Huot Operations
Manager
· Jeremy
Nottingham Commercial
Manager
· Paul
Snyman Finance
Manager
· Jean
Pierre Boucard Smelter Project Manager
· Niall
O'Byrne Power
Project Manager
· Mrs Malak Al Shaibani Corporate
Affairs Manager
· Reda Abdullah Human
Resources Manager
LEGAL FORM & OWNERS
Date of
Establishment : September 2004
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company –
LLC)
Commercial Reg. No. : 1/76671/6
Issued Capital : RO 10,000,000
Paid up Capital : RO 10,000,000
Name of Shareholder (s) Percentage
· Oman
Oil Company SAOC 40%
PO Box 261
Muscat
118
Oman
Tel:
(968) 24573100
Fax:
(968) 24573101
· Abu
Dhabi Water & Electricity Authority (ADWEA) 40%
PO Box 6120
Abu Dhabi
United Arab
Emirates
Tel: (971-2)
6943333
Fax: (971-2)
6943192
· Alcan
Inc 20%
Non Omani Participation
The participation of non-Omani nationals in a trade or business in Oman is governed by the Foreign Business Investment Law, which sets capital requirements and requires 35 % Omani participation in capital and profits.
Note to the Legal Form
The Limited Liability Company (LLC), or private company, is the form of business entity usually chosen by foreign investors. It may be formed by a minimum of 2 and a maximum of 30 natural or legal persons, whose liability is limited to their shares in the company’s capital. The minimum capital of a Limited Liability Company with foreign ownership should be RO 150,000, although this may be reduced to a minimum of RO 30,000 with the approval of the Minister of Commerce and Industry. For a company wholly owned by Omani nationals, the minimum capital is RO 10,000.
Contributions to capital may be made in cash of kind. Capital may not be increased by public subscription. The full amount of the share value must be paid in on subscription. Shares may not be assigned to a non-member, unless the other existing members are granted a pre-emptive right to purchase the shares.
LINE OF BUSINESS
Operations : Sohar Aluminium Company
was formed in September 2004 to undertake a
landmark US$ 2.4 billion
Greenfield Aluminium Smelter project in the Sultanate of Oman. On 11th
December 2005, Sohar Aluminium celebrated obtaining formal project and
financial close and the signing of major agreements
The company now has the “green
light” to build and operate its smelter and power plant in Sohar. The smelter
will be located 11 km inland from the Port of Sohar while the power plant will
be built in the Sohar industrial port area
The company, as a first phase
development, will build a single AP35 potline, together with associated carbon,
casting facilities and a 1000 MW gas fired power station, and will produce
350,000 tonnes per annum of primary aluminium.
Subject has a workforce of approximately 40 employees but this will
increase as the company nears commencement of commercial production.
FINANCIAL HIGHLIGHTS
Companies registered in Oman are not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
BANKERS
·
National Bank of Oman Limited (SAOG)
Muttrah Business District
PO Box : 751, Ruwi 112
Muscat
Tel : (968-24) 708894 708630 / 708684
Fax : (968-24) 707781 / 703972
· The Commercial Bank of Oman SAOG
Muttrah
Business District
PO Box :
1696, Ruwi 112
Muscat
Tel :
(968-24) 793225 / 793226 / 793228
Fax :
(968-24) 793229
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Sohar Aluminium Company was formed in September 2004 to
undertake a landmark US$ 2.4 billion Greenfield Aluminium Smelter project in
the Sultanate of Oman. When completed the company will produce 350,000 tonnes
per annum of primary aluminium.
The company is owned by very well known and financially strong
international organisations, including one of the leading companies in the
aluminium industry – Alcan Inc.
According to local sources subject is making steady
progress in the local business market and nothing detrimental has been reported
regarding the manner in which payments are fulfilled. As such the business is
considered to be a fair trade risk.
Maximum suggested credit figure: US$ 1,500,000
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%)