MIRA
INFORM REPORT
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Report Date : |
10.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
ITOCHU PETROLEUM JAPAN LTD |
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Registered Office : |
Itochu Bldg 14F, 2-5-1 Kita-Aoyama Minatoku Tokyo 107-0061 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
January 1983 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Tanker Chartering and Operation; Petroleum Trading
(E-trade); Oil Tank Leasing |
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 : |
YEN 1,983.9 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
NAME & ADDRESS
ITOCHU PETROLEUM
JAPAN LTD
REGD NAME: Itochu Petroleum KK
MAIN OFFICE: Itochu Bldg 14F, 2-5-1 Kita-Aoyama Minatoku
Tokyo 107-0061 JAPAN
Tel:
03-3497-8601 Fax: 03-3497-8610
URL: http://www.ipc.jpn.co.jp/
E-Mail address: tkbkr@itochu.co.jp
ACTIVITIES
Tanker chartering & operation; petroleum trading
(e-trade); oil tank leasing
BRANCHES
Monaco, Beijing, Mumbai
OFFICER(S)
YUTAKA TANAKA, PRES
Isao Nakao, dir
Fuminobu Oda, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 128,411 M
PAYMENTS REGULAR CAPITAL Yen 949 M
TREND STEADY WORTH Yen 3,174 M
STARTED 1983 EMPLOYES 36
COMMENT
TANKER
OWNER, BUNKER OIL & LUBEOIL SALES, WHOLLY OWNED BY ITOCHU CORP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,983.9 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was
established by Itochu Corp, nation’s leading general trading house, at the
caption address (See REGISTRATION),
originally as CI Marine Co Ltd for the purpose of providing petroleum &
natural gas transportation services for the parent. In 1998, merged with CI Bunker Co Ltd in the line of marine fuel
& lubricant sales, and renamed Itochu Marine Co Ltd. On 01/Jul/02, renamed as captioned in order
to expand activities into the international trading of crude oil &
petroleum products. In June 2003,
acquired all shares of Itochu Petroleum (Singapore) Pte Ltd, former subsidiary
of the parent, which had been trading 700,000 barrels/day of crude oil &
products in Asia, Mid East and Europe.
By the acquisition, the subject firm’s activities have expanded from
tanker chartering and bunker sales into a major segment of the petroleum
trading activities of Itochu Corp, and to become the core firm in Asia for the
International Energy Trading Dept of the parent. Further in Oct 2003, the subject absorbed Itochu Oil Terminal Co
Ltd, in the tank leasing business, and newly founded the “Energy Business
Department”. The subject increased its
capital to Yen 779 million in June 2003, followed by Yen 949 million in Oct
2003. Plans to merge with Itochu Enex Co Ltd in Oct 2008, of which details not
reported.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 128,411 million, a 27% up
from Yen 101,264 million in the previous term.
Skyrocketing oil prices and oil transportation charges spurred the
sales. The recurring profit was posted
at Yen 1,183 million and the net profit at Yen 685 million, respectively,
compared with Yen 1,101 million recurring profit and Yen 585 million net
profit, respectively, a year ago.
For
the current term ending Mar 2009 the recurring profit is projected at Yen 1,190
million and the net profit at Yen 690 million, respectively, on a 5% rise in
turnover, to Yen 135,000 million. Oil
trading and transport demand are expected to rise steadily.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 1,983.9 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jan 1983
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
62,320 shares
Issued: 18,980 shares
Sum: Yen 949 million
Major
shareholders (%): Itochu Corp*(100)
*..
Nation’s leading general trading house, at the caption address, founded 1949,
listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s; capital Yen 202,241
million, turnover Yen 12,412,456 million,
operating profit Yen 266,524 million, recurring profit Yen 282,707 million, net
profit Yen 218,585 million, total assets Yen 5,255,420 million, net worth Yen
978,471 million, employees 48,675, pres Eizo Kobayashi Consolidated Financials
are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Tanker owning, chartering, operating; petroleum & petroleum products sales;
oil tank leasing, other related
activities, as an essential division of the parent’s International Petroleum Trading division (--100%). Owns/charters 13
tankers, with 3 new buildings scheduled in 2009 & 2010
Clients
[Cargo
owners, shipping firms, oil refineries] Itochu Corp, NYK, K Line, Mitsui OSK
Lines, Nakata Mac Corp, Japan Energy, Showa Shell Sempaku, Royal Dutch/Shell
Group firms, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Shipping
lines, ship owners] Mitsui OSK Lines, Yuyo Steamship, Kyushu Oil, NYK, Taiheiyo
Kaiun, Iino Kaiun Kaisha, Cosmo Oil, Japan Energy, Kawasaki Kisen Kaisha,
other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are owned by the parent and maintained satisfactorily.
Bank References
MUFG (H/O)
SMBC (Tokyo)
Relations: Satisfactory
FINANCES
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Terms Ending: |
31/03/2009 |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual
Sales |
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135,000 |
128,411 |
101,264 |
82,731 |
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Recur.
Profit |
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1,190 |
1,183 |
1,101 |
1,169 |
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Net
Profit |
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690 |
685 |
585 |
680 |
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Total
Assets |
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17,725 |
14,034 |
10,596 |
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Current
Assets |
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14,833 |
11,280 |
7,827 |
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Current
Liabs |
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14,423 |
10,878 |
7,347 |
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Net
Worth |
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3,174 |
2,989 |
2,903 |
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Capital,
Paid-Up |
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949 |
949 |
949 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.13 |
26.81 |
22.40 |
25.10 |
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Current Ratio |
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.. |
102.84 |
103.70 |
106.53 |
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N.Worth Ratio |
.. |
17.91 |
21.30 |
27.40 |
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R.Profit/Sales |
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0.88 |
0.92 |
1.09 |
1.41 |
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N.Profit/Sales |
0.51 |
0.53 |
0.58 |
0.82 |
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Return On Equity |
.. |
21.58 |
19.57 |
23.42 |
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Notes:
Forecast figures for the 31/03/2009 fiscal term.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT, ITOCHU CORP
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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12,412,456 |
11,579,059 |
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Cost of Sales |
11,416,552 |
10,670,383 |
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GROSS PROFIT |
995,904 |
908,676 |
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Selling & Adm Costs |
729,380 |
644,055 |
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OPERATING PROFIT |
266,524 |
264,621 |
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Non-Operating P/L |
16,183 |
35,609 |
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RECURRING PROFIT |
282,707 |
300,230 |
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NET PROFIT |
218,585 |
177,059 |
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BALANCE SHEET |
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Cash |
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446,311 |
532,856 |
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Receivables |
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1,391,211 |
1,273,464 |
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Inventory |
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531,534 |
530,335 |
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Securities, Marketable |
31,161 |
30,776 |
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Other Current Assets |
694,269 |
699,474 |
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TOTAL CURRENT ASSETS |
3,094,486 |
3,066,905 |
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Property & Equipment |
513,017 |
530,045 |
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Intangibles |
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Investments, Other Fixed Assets |
1,647,917 |
1,674,562 |
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TOTAL ASSETS |
5,255,420 |
5,271,512 |
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Payables |
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1,133,683 |
1,143,422 |
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Short-Term Bank Loans |
307,446 |
373,723 |
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Other Current Liabs |
748,329 |
842,151 |
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TOTAL CURRENT LIABS |
2,189,458 |
2,359,296 |
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Debentures |
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Long-Term Bank Loans |
1,895,088 |
1,795,333 |
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Reserve for Retirement Allw |
19,602 |
21,748 |
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Other Debts |
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27,183 |
55,885 |
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TOTAL LIABILITIES |
4,131,331 |
4,232,262 |
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MINORITY INTERESTS |
145,618 |
143,055 |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
137,211 |
136,842 |
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Retained
earnings |
668,056 |
477,159 |
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Evaluation
p/l on investments/securities |
74,389 |
122,736 |
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Others |
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(100,837) |
(40,873) |
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Treasury
stock, at cost |
(2,589) |
(1,910) |
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TOTAL S/HOLDERS` EQUITY |
978,471 |
896,195 |
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TOTAL EQUITIES |
5,255,420 |
5,271,512 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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65,552 |
235,917 |
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Cash
Flows from Investment Activities |
-65,774 |
-83,394 |
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Cash
Flows from Financing Activities |
-81,294 |
-100,920 |
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Cash,
Bank Deposits at the Term End |
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446,311 |
532,856 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
978,471 |
896,195 |
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Current
Ratio (%) |
141.34 |
129.99 |
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Net
Worth Ratio (%) |
18.62 |
17.00 |
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Recurring
Profit Ratio (%) |
2.28 |
2.59 |
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Net
Profit Ratio (%) |
1.76 |
1.53 |
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Return
On Equity (%) |
22.34 |
19.76 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.12 |
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UK Pound |
1 |
Rs.79.60 |
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Euro |
1 |
Rs.63.83 |
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%)