MIRA INFORM
REPORT
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Report Date : |
21.06.2011 |
IDENTIFICATION DETAILS
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Name : |
MODEC INC |
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Registered Office : |
Mitsui Seimei Bunkyo Kohinata Bldg, 4-2-8 Kohinata Bunkyoku Tokyo , 112-0006 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
June 1987 |
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Com. Reg. No.: |
(Tokyo-Chiyodaku) 007886 |
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Legal Form : |
Limited Company |
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Line of Business : |
Engineering firm of offshore
oil & gas production facilities |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 4,461.4 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
--- |
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
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
MODEC INC
REGD NAMe
Mitsui Kaiyo
Kaihatsu KK
MAIN OFFICE
Mitsui Seimei
Bunkyo Kohinata Bldg, 4-2-8 Kohinata Bunkyoku Tokyo , 112-0006 JAPAN
Tel: 03-5800-6081 Fax: 03-5800-6060
*.. Registered at: 3-2-1 Kasumigaseki Chiyodaku Tokyo
E-Mail address: general@modec.com
ACTIVITIES
Engineering
firm of offshore oil & gas production facilities
BRANCHES
Houston,
Rio de Janeiro, Mexico City, Vietnam, Singapore, Jakarta, Belawan, Darwin,
Africa, other (--affiliates,
project
sites)
CHIEF EXEC
TOSHIO
MIYAZAKI, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 146,660 M
PAYMENTS REGULAR CAPITAL Yen 20,185 M
TREND SLOW WORTH Yen
58,323 M
STARTED 1987 EMPLOYES 611
COMMENT: ENGINEERING
OF OFFSHORE OIL & GAS PRODUCTIN FACILITIES. FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 4,461.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/12/2011 fiscal term
HIGHLIGHTS
The subject company was established jointly by Mitsui Engineering &
Shipbuilding and Mitsui & Co as Engineering Firm with design, construction
and leasing of offshore oil & gas drilling facilities as mainline. World’s second largest mfr of such facilities
based on strength of original technology for floating body-method. Has good & abundant experiences
overseas. Operations cover USA, Asia,
Africa, Oceania, etc. In Dec/2006,
acquired FMC Technologies Floating Systems, a manufacturer of moorings for offshore
plants, for US$54.4 million, or about Yen 6,300 million. The company will focus on abundant projects
for development of ultra-deepwater oil fields in Brazil. It aims to win orders for the world’s first
LNG floating equipment in Brazil.
FINANCIAL INFORMATION
The sales volume for Dec/2010 fiscal term amounted to Yen 146,660
million, a 28.2% down from Yen 204,225 million in the previous term, as
affected by the global economic downturn.
The explosion of Mexican oil fields affected negatively. The recurring profit was posted at Yen 6,156
million and the net profit at Yen 2,735 million, respectively, compared with
Yen 7,454 million recurring profit and Yen 2,413 million net profit,
respectively, a year ago.
(Jan/Mar/2011 results): Sales Yen 29,295 million (down 28.8%), operating
loss Yen 2,353 million (down from Yen 1,744 million profit), recurring profit
Yen 22 million (down 99.0%), net profit Yen 789 million (down 47.2%). (% compared with the corresponding period a
year ago).
For the current term ending Dec 2011 the recurring profit is projected
at Yen 4,000 million and the net profit at Yen 2,900 million, on an 18.2% fall
in turnover, to Yen 120,000 million.
Order backlog for floating production storage & offshore (EPSO)
vessels is low at two. New orders for
two EPSO vessels and one moored production will contribute only marginally to
the sales of the current term. Sales
from vessel construction & engineering works will continue the
decrease. Current profits will sag,
despite fading-out of foreign exchange losses.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated at Yen
4,461.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1987
Regd No.: (Tokyo-Chiyodaku) 007886
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
102,868,000 shares
Issued: 46,408,000 shares
Sum: Yen 20,185 million
Major shareholders
(%):
Mitsui Engineering & Shipbuilding*(50.1), Mitsui & Co (14.9), Trust
& Custody Services (2.8), Chase Manhattan Bank (London) (2.4), Master Trust
Bank of Japan T (2.0), Japan Trustee Services T (1.9), Morgan Stanley
International (1.6), Japan Trustee Services T (1.4), Sojitz Corp (0.9),
Northern Trust G S Re Norwegian C (0.9); foreign owners (13.4)
No. of shareholders: 8,300
*.. Major mfr in shipbuilding & heavy electric machinery, Tokyo,
founded 1937, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 44,384 million,
turnover Yen 589,209 million, recurring profit
Yen 36,216 million, net profit Yen 13,493 million, total assets Yen 686,325
million, net worth Yen 164,327 million, employees 10,326, pres Yasuhiko Kato
Listed on the S/Exchange (s) of: Tokyo
Managements: Toshio Miyazaki, pres; Yasuo Asama, mgn dir; Norio Nagata,
dir; Shun’ichi Yamashita, dir; Toshiaki Urashima, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Modec Int’l LLC, other (Tot 19 as of Dec/06)
OPERATION
Activities: Engineering firm
specializing in offshore oil & gas drilling facilities: Breakdown of sales:
Vessel construction and engineering works (81%), leasing, chartering and
operations (14.0%), others (5%).
Overseas operations
(99.8%): Asia 4.7%; Africa 32.9%; Oceania 7.0%; Latin America 54.7%; N America
0.3%, others 0.2%.
Projects providing vessel
leasing, chartering & operations services are:
Conoco/Phillips
Elang/Kakatus EPSO* (East Timor/Australia)
Pemex Cantarell FSO (Mexico)
CLJOC Su Tu Den EPSO
(Vietnam)
MEDCO/MOECO Langsa FPSO
(Indonesia)
Santos Mutineer-Exeter
FPO (Australia)
ONR Baobab FPSO (Cote
d’Ivoire)
PEARL Jasmine FPSO
(Thailand)
SHELL Bijupira-Salema
(Brazil)
*.. FPSO is short for
Floating Production, Storage and Offloading.
Clients: [Oil drillers]
Tullow Ghana Ltd, Tupi Pilot MV22 BV, BP Exploration Ltd, Gas Opportunity MV20
BV, other.
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, shipbuilders]
SOFEC Inc, FMC Technologies Inc (USA), other shipbuilders in China, Singapore,
Korea, etc.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC
(H/O)
Chuo
Mitsui Trust Bank (Nihombashi)
Relations:
Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2010 |
31/12/2009 |
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INCOME STATEMENT |
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Annual Sales |
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146,660 |
204,225 |
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Cost of Sales |
134,595 |
192,676 |
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GROSS PROFIT |
12,065 |
11,549 |
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Selling & Adm Costs |
8,501 |
7,380 |
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OPERATING PROFIT |
3,563 |
4,169 |
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Non-Operating P/L |
2,593 |
3,285 |
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RECURRING PROFIT |
6,156 |
7,454 |
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NET PROFIT |
2,735 |
2,413 |
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BALANCE SHEET |
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Cash |
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12,122 |
31,505 |
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Receivables |
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43,082 |
86,704 |
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Inventory |
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875 |
833 |
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Securities, Marketable |
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Other Current Assets |
42,056 |
8,690 |
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TOTAL CURRENT ASSETS |
98,135 |
127,732 |
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Property & Equipment |
15,033 |
1,516 |
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Intangibles |
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6,820 |
7,272 |
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Investments, Other Fixed Assets |
26,639 |
31,845 |
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TOTAL ASSETS |
146,627 |
168,365 |
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Payables |
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41,562 |
56,144 |
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Short-Term Bank Loans |
17,193 |
27,180 |
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Other Current Liabs |
19,061 |
27,211 |
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TOTAL CURRENT LIABS |
77,816 |
110,535 |
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Debentures |
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Long-Term Bank Loans |
8,140 |
13,472 |
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Reserve for Retirement Allw |
158 |
146 |
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Other Debts |
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2,189 |
4,138 |
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TOTAL LIABILITIES |
88,303 |
128,291 |
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MINORITY INTERESTS |
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Common
stock |
20,185 |
12,391 |
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Additional
paid-in capital |
20,915 |
13,121 |
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Retained
earnings |
21,066 |
19,249 |
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Evaluation
p/l on investments/securities |
(9) |
(6) |
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Others |
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(3,833) |
(4,681) |
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Treasury
stock, at cost |
(1) |
(1) |
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TOTAL S/HOLDERS` EQUITY |
58,323 |
40,073 |
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TOTAL EQUITIES |
146,627 |
168,365 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2010 |
31/12/2009 |
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Cash
Flows from Operating Activities |
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7,502 |
-37,098 |
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Cash
Flows from Investment Activities |
-21,635 |
21,974 |
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Cash Flows
from Financing Activities |
7,668 |
-277 |
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Cash,
Bank Deposits at the Term End |
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12,122 |
31,505 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2010 |
31/12/2009 |
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Net
Worth (S/Holders' Equity) |
58,323 |
40,073 |
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Current
Ratio (%) |
126.11 |
115.56 |
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Net
Worth Ratio (%) |
39.78 |
23.80 |
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Recurring
Profit Ratio (%) |
4.20 |
3.65 |
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Net
Profit Ratio (%) |
1.86 |
1.18 |
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Return
On Equity (%) |
4.69 |
6.02 |
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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.44.99 |
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UK Pound |
1 |
Rs.72.60 |
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Euro |
1 |
Rs.64.01 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.