MIRA INFORM REPORT

 

 

Report Date :           

10.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ELEME PETROCHEMICALS COMPANY LIMITED 

 

 

Registered Office :

Eleme Petrochemicals Company, Port Harcourt, River State

 

 

Country :

Nigeria

 

 

Year of Establishment :

30.11.1988

 

 

Com. Reg. No.:

RC: 121777

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture and marketing of a range of Petrochemical Products locally and abroad.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Nigeria

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name  

 

ELEME PETROCHEMICALS COMPANY LIMITED

 

OPERATIONS

 

Subject is into Manufacture and marketing of a range of Petrochemical Products locally and abroad.

COMPANY LOCATION

 

The company’s factory/Head Office is located at Eleme Petrochemicals Complex, East-West Expressway, Eleme, Port Harcourt, River State while its admin office is located at Central Plaza House, Phase II, Garki, Abuja.

 

 

IDENTIFICATION

 

COMPANY NAME:                                  ELEME PETROCHEMICALS COMPANY LIMITED

REGISTERED NAME:                           ELEME PETROCHEMICALS NIGERIA CO. LTD.

REGISTERED ADDRESS:                      Eleme Petrochemicals Company, Port Harcourt, River State-Nigeria

 

FACTORY/HEAD OFFICE ADD.:             Eleme Petrochemicals Complex, East-West Expressway,

                                                            Eleme, Port Harcourt, River State

ADMIN OFFICE ADDRESS:                   Central Plaza House, Phase II, Garki, Abuja.

POSTAL ADDRESS:                             P.M.B 5151, Port Harcourt, River  State -Nigeria

 

TELEPHONE                                            234-84- 239321,231916, 239 317,230 337,235161,239320         

                                                                                                                                               

FAX:                                                     234-84 - 235749/238321

MOBILE:                                               234-803-315-7531

E-MAIL:                                                   infoepcl@indorama.com.ng 

WEBSITE:                                            www.indorama.com     

 

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N148 to 1 US $.

 

 

SUMMARY

 

NATURE OF PREMISES:                       Owned office/factory space as head office occupying 8,500 metres square

DATE INCORPORATED                         30th November, 1988

START OF OPERATIONS:                     1988

LEGAL FORM:                                       Private Limited Company

REGISTRATION NO:                             RC: 121777

SHARE CAPITAL:                                N50, Million                  

PAID UP CAPITAL:                               N50, Million

 

STAFF STRENGTH:                              Over 300

                                                             

SHAREHOLDERS/DIRECTORS

  1. Godwin Adams             
  2. Clement Okoko                                      
  3. Sanni Bello
  4. Jackson E. Obaseki
  5. Mansur Ahmed
  6. Joseph T. Dawha
  7. Ahmed B. Abdullah
  8. Mfon E. Ubom
  9. Odenigbo Paul

10     Ezenwa A. Dennar

11     Alhaji Akinsanya Shams A.

12     Chief Ken Nnamani

13     Dr. David A. Adeola                   

14     Frank Amiekumo

15     Alhaji Gwadabe Satatima           

16     Hajiya Zainab

17     Mr. Deepak Bang

18     Munish Jindal

19     Manish Mudra               

 

BACKGROUND

 

Eleme Petrochemicals Company Limited was established in 1988.  It is a polyolefin producer based in Port Harcourt, River State, Nigeria. Eleme Petrochemicals Company Limited was a 100 per cent subsidiary of the Nigerian National Petroleum Corporation (NNPC). The Indorama Group was declared core investor by the National Council of Privatisation in 2005.  The privatization process of EPCL began in May 2005 and was completed in May 2006.

 

The Eleme Petrochemicals complex is located at Eleme town near the Nigerian city of Port Harcourt in Rivers State. It was built in 1995 by a consortium, comprising of Chiyoda, JGC, and Kobe Steel of Japan, Technimont of Italy, and Spie Batignolles of France. The complex comprises of an olefins unit, a polyolefins unit, a captive power plant and other supporting units. EPCL is strategically positioned to feed the growing demand of plastics in Africa. With state-of-the-art manufacturing facilities, the complex consists of a gas feed cracker unit and two main downstream plants. The total production is over 550 KTA of world-class olefins and polyolefins.

 

Eleme Petrochemicals is poised to become one of the leading suppliers of polyolefins in the African continent. The company strives to ensure total customer satisfaction and consistently produce high quality products. The company focuses on providing world-class products at competitive prices and customised grades to suit the customer’s specific requirements.

 

The Eleme Complex is designed to produce 240,000 metric tons of polyethylene per year, and 95,000 metric tons per year of polypropylene. To produce these resins, natural gas liquid is cracked in a M.W. Kellogg (USA) licensed olefins plant. The polyethylene plant is a Sclairtech process licensed by Nova Chemicals and the propylene plant is Spheripol process of Basell. Additionally 22,000 metric tons of Butene-1 can be produced in the complex. Butene-1 is used as co-monomer in the production of linear Low-Density Polyethylene (LLDPE).

 

The first TurnAround Maintenance (TAM) was performed from 17 May 2006 until the end of September 2006. After the completion of all planned activities, the plants were operational on 15 September 2006. The President of the Federal Republic of Nigeria, in 2006, re-commissioned the new privatized and revitalized EPCL on 12 October 2006. The plant is situated on 400 hectares of land and potential expansion capabilities are well catered to in the layout design. Indorama is planning to make this complex the petrochemical hub of Africa by bringing it up to its full design capacity, and then undertaking expansion plans.

 

 

 

The company deploys professionals to deliver excellent and cost effective solutions to industry problems with a policy of involving the best and tested hands and rigorous supervision which provides safe working environment without compromising on quality.

 

During our visit on 7th June, 2011, we met the receptionist who informed us that visitors are not allowed to enter any of their offices except by appointment. Also, we called the number provided on the enquiry (234-84 231916) but the number was not going through, as such, we were unable to speak with the Managing Director of the company. The Company paid its Statutory Annual Returns till 2010.

 

Conclusion: Based on our physical visit to the company and available information, it is our opinion that the company is engaged in legitimate business as such, any relationship with the company should be mutually beneficial.

 

 

RELATED COMPANIES

 

 

 

PAYMENT REFERENCES

 

Subject has both local and international references

 

 

TYPES OF CUSTOMERS

 

Shell Petroleum Development Company , Nigerian LNG Ltd, Mobil Oil Producing Unlimited, Nigerian Agip Oil Company (NAOC)  etc.

 

 

PERFORMANCE RANKING

* Quality of Management:          GOOD

* Ethics & Integrity:                     GOOD

* Ownership Structure:               GOOD

 

PHYSICAL VISIT

 

  1. Company Premises 
  2. Corporate Affairs Commission

 

FINANCES: 

Subject’s Audited Accounts was not available as at the time of compiling this report. However, The Company’s estimated turnover could be put at $100 Million (Hundred Million Dollars).

 

RISK RATING ASSESSMENT:

Apparently healthy, with adequate working

capital to meet normal Commitments

CREDIT LINE AMOUNT:

Normal

CREDIT LINE OPINION:

Subject appears to be  a credit worthy organization

 

 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

Subject is operating in an industry with very great potentials. With the Local Content Initiative of the supervising agency, Nigerian indigenous companies now have exclusive rights up-to 30% of all contracts awarded within the Oil & Gas industry.  In cases where local expertise are lacking indigenous companies are encouraged to enter into technical partnership with foreign firms.  With this innovation, local indigenous companies now have regular access to bids and can also benefit from the transfer of technology and expertise from their foreign technical partners. The Gas sector according to the recent World Bank’s estimate is worth $ 284 million and it has the capacity for a 10% growth in the next three years. The current low supply of LPG of about 0.5kg/h/yr from Nigeria to West African sub- region as against the West African average of 3.7kg/h/yr, gives room for more investors and expertise.

 

There are many opportunities in this sector of the economy. These could be largely achieved through foreign companies joint ventures with Nigerian companies, as well as providing adequate Training/Technical Assistance - Provision of training facilities for a large work force indirectly engaged in the sub-sector of the economy. This sector of the economy has great potentials for intending investors.

No negative information on subject from the above agencies as at the time of compiling this report.

 

 

CMT REPORT

(Corruption, Money Laundering & Terrorism)

 

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs Administration and Control (NAFDAC), Independent Corrupt Practices and other related offences Commission (ICPC) Etc.

 

No negative information on the subject from the above agencies.

OFFICIAL REMARKS

 

Having carried out all necessary verifications on the subject, our investigations revealed that Eleme Petrochemicals Company Nigeria Limited is duly registered in Nigeria with a registered address at Eleme Petrochemicals Company, Port Harcourt, River State-Nigeria while its head office is located at at Eleme Petrochemicals Complex, East-West Expressway, Eleme, Port Harcourt, River State.

 

Subject is into genuine business transactions.  Subject is an on-going concern. 

All information contained in the report is mostly from secondary sources only.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.72

UK Pound

1

Rs.73.47

Euro

1

Rs.65.38

 

 

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

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

----

NB

New Business

----

 

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%)

 

 

 

 

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