MIRA
INFORM REPORT
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Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
JAPAN ENERGY CORPORATION |
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Registered Office : |
2-10-1 Toranomon Minatoku Tokyo 105-8407 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Apr 2003 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Oil refinery |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 45745.9 millions |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name
JAPAN ENERGY CORPORATION
REGD NAME
KK Japan Energy
MAIN OFFICE
2-10-1 Toranomon Minatoku Tokyo 105-8407 JAPAN
Tel : 03-5573-6160
Fax : 03-5573-6784
URL : http://www.j-energy.co.jp/
E-Mail address: info@j-energy.co.jp
ACTIVITIES
Oil refinery
BRANCHES
Sapporo, Sendai, Yokohama, Nagoya, Osaka, Hiroshima, Fukuoka
OVERSEAS
China (2), UK, USA, Singapore, Australia (--subsidiaries)
FACTORY(IES)
Mizushima (Okayama), Chita (Aichi), Funakawa (Akita)
(subsidiary refinery)
OFFICER(S)
ISAO MATSUSHITA, PRES Kenji
Arakawa, v pres
Ken’ichi Yamaguchi, s/mgn dir Masao Miyakawa, mgn dir
Ukio Uchida, mgn dir Masamichi
Gamachi, mgn dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,552,580 M
PAYMENTS REGULAR CAPITAL Yen 48,000 M
TREND STEADY WORTH Yen 283,898 M
STARTED 2003 EMPLOYES 1,483
COMMENT
OIL REFINERY, OWNED BY NIPPON MINING HOLDINGS INC. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 45,745.9 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established originally in 1905 by Fusanosuke Kuhara on acquiring mining rights of Hitachi Mine and began operations, on his account. In 1912, incorporated as Nippon Sangyo KK, and in 1929, separated the mining and smelting operations to Nippon Mining Co Ltd. In 1933, started crude oil production. In 1965, separated oil sales division to a jointly-founded firm, Kyodo Oil Co Ltd. In 1991, established Nikko Petrochemical Co Ltd to start petrochemical production. In Dec 1993, company name changed as captioned and introduced a brand name of “JOMO”, gas filling stations being operated by this brand name. In July 1994, founded a JV company in China, Shanxi Japan Energy Lubricants Co Ltd, to handle lubricants. In 1996, petrochemicals operations were transferred from Nikko Petrochemicals Co Ltd. In Sept 2002, established a holding company, Nippon Mining Holdings Inc (see REGISTRATION), jointly with Nippon Mining & Metals, and became a wholly owned subsidiary under the holding company. The group has four major operations: petroleum (including petrochemicals); natural resources/metals; electronics materials; metal processing works, other. The subject firm operates gas filling stations under name of “JOMO” nationwide. The petroleum operations account for 72% of group total sales as at Mar/2007. In Apr 2007, expanded oil cracking equipment at Mizushima Oil Refinery to 30,000 bbls/day from 26,000 bbls/day. Promoting crude oil production projects in Mid East, S/E Asia and Oceania.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 2,552,580 million, a 15% up from Yen 2,225,780 million in the previous term. This is attributed to the skyrocketing rise in oil prices. The recurring profit was posted at Yen 61,560 million and the net profit at Yen 24,270 million, respectively, compared with Yen 79,945 million recurring profit and Yen 48,206 million net profit, respectively, a year ago. Profits decrease is referred to rising costs of operations and other factors not being specified.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 56,000 million and the net profit at Yen 24,000 million,
respectively, on a 10% rise in turnover, to Yen 2,810,000 million. While the sales will keep expanding, the
profitability will likely deteriorate due to the rising costs of operations and
evaluation losses of inventories. Oil
firms are facing difficulties because higher crude oil prices are also causing
cash flow problems.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 45,745.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr
2003
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 2
million shares
Issued: 580,000
shares
Sum: Yen
48,000 million
Major shareholders (%): Nippon Mining Holdings Inc*(100)
*.. Holding company founded in Sept 2002 thru management consolidation between Japan Energy and Nippon Mining & Metals, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 73,920 million, sales Yen 3,802,447 million, operating profit Yen 132,258 million, recurring profit Yen 224,236 million, net profit Yen 106,430 million, total assets Yen 2,056,407 million, net worth Yen 622,476 million, employees 9,969, pres Mitsunori Takahagi.
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Oil refinery & sales: petroleum products, LNG, LPG, naphtha, gasoline, lubricants, petrochemicals, others (--100%).
The division represents about 72% of total group consolidated sales.
Clients: [Mfrs, wholesalers, consumers] Itochu Enex, Nikko Petrochemicals, Zen-Noh, Usami & Co, Showa Shell Sekiyu, Kignus Oil, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Oil producers, mfrs, wholesalers] Kashima Oil, Fuji Oil, Toyota Tsusho Corp, Cosmo Oil, other.
Also supplied from Aramco (Saudi Arabia), Japan Energy Singapore, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned by the group and
maintained satisfactorily.
Bank References
Mizuho Corporate Bank (H/O)
SMBC (H/O)
Relations: Satisfactory
Finances
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual Sales |
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2,810,000 |
2,552,580 |
2,225,780 |
1,839,976 |
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Recur. Profit |
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56,000 |
61,560 |
79,945 |
67,992 |
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Net Profit |
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24,000 |
24,270 |
48,206 |
28,321 |
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Total Assets |
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1,017,262 |
984,066 |
838,801 |
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Current Assets |
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545,850 |
518,755 |
381,368 |
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Current Liabs |
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553,678 |
519,718 |
429,225 |
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Net Worth |
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283,898 |
238,512 |
161,046 |
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Capital, Paid-Up |
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48,000 |
48,000 |
48,000 |
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Div.P.Share(Ą) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
10.08 |
14.68 |
20.97 |
15.52 |
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Current Ratio |
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.. |
98.59 |
99.81 |
88.85 |
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N.Worth Ratio |
.. |
27.91 |
24.24 |
19.20 |
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R.Profit/Sales |
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1.99 |
2.41 |
3.59 |
3.70 |
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N.Profit/Sales |
0.85 |
0.95 |
2.17 |
1.54 |
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Return On Equity |
.. |
8.55 |
20.21 |
17.59 |
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Notes: Forecast figures for the 31/03/2008 fiscal term
SUPPLEMENTS
Consolidated Financials of the parent, Nippon Mining
Holdings Inc.
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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3,802,447 |
3,026,262 |
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Cost of Sales |
3,485,283 |
2,712,989 |
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GROSS PROFIT |
317,164 |
313,273 |
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Selling & Adm Costs |
184,906 |
168,825 |
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OPERATING PROFIT |
132,258 |
144,448 |
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Non-Operating P/L |
91,978 |
44,274 |
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RECURRING PROFIT |
224,236 |
188,722 |
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NET PROFIT |
106,430 |
96,905 |
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BALANCE SHEET |
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Cash |
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46,475 |
64,735 |
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Receivables |
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371,539 |
334,604 |
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Inventory |
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494,954 |
440,410 |
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Securities, Marketable |
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1 |
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Other Current Assets |
83,825 |
66,630 |
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TOTAL CURRENT ASSETS |
996,793 |
906,380 |
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Property & Equipment |
649,901 |
590,039 |
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Intangibles |
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92,754 |
64,794 |
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Investments, Other Fixed Assets |
316,959 |
298,370 |
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TOTAL ASSETS |
2,056,407 |
1,859,583 |
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Payables |
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253,935 |
294,424 |
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Short-Term Bank Loans |
447,635 |
368,312 |
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Other Current Liabs |
271,925 |
258,283 |
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TOTAL CURRENT LIABS |
973,495 |
921,019 |
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Debentures |
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Long-Term Bank Loans |
215,802 |
275,424 |
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Reserve for Retirement Allw |
62,528 |
61,085 |
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Other Debts |
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103,518 |
88,549 |
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TOTAL LIABILITIES |
1,355,343 |
1,346,077 |
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MINORITY INTERESTS |
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46,027 |
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Common stock |
73,920 |
40,000 |
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Additional paid-in capital |
226,762 |
192,948 |
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Retained earnings |
278,259 |
192,148 |
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Evaluation p/l on
investments/securities |
35,987 |
39,471 |
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Others |
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86,706 |
3,342 |
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Treasury stock, at cost |
(570) |
(430) |
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TOTAL S/HOLDERS` EQUITY |
701,064 |
467,479 |
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TOTAL EQUITIES |
2,056,407 |
1,859,583 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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41,200 |
24,258 |
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Cash Flows from Investment
Activities |
-97,576 |
-37,594 |
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Cash Flows from Financing Activities |
37,401 |
11,962 |
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Cash, Bank Deposits at the Term End |
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45,249 |
63,857 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
701,064 |
467,479 |
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Current Ratio (%) |
102.39 |
98.41 |
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Net Worth Ratio (%) |
34.09 |
25.14 |
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Recurring Profit Ratio (%) |
5.90 |
6.24 |
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Net Profit Ratio (%) |
2.80 |
3.20 |
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Return On Equity (%) |
15.18 |
20.73 |
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%)