MIRA INFORM REPORT

 

 

Report Date :           

07.09.2011

 

IDENTIFICATION DETAILS

 

Name :

DELCOM OILFIELD SERVICES SDN. BHD.

 

 

Formerly Known As :

CAMCO (MALAYSIA) SDN. BHD.

 

 

Registered Office :

No. 2, Jalan Bangsar Utama 9, Bangsar Utama,   Kuala Lumpur, Wilayah Persekutuan, Zip/postal code 59000

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

20.03.1978

 

 

Com. Reg. No.:

38274-D

 

 

Legal Form :

Private Limited Company Limited By Shares

 

 

Line of Business :

Provision of wireline equipment and services, integrated wellhead  maintenance services

 

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

 

Maximum Credit Limit :

USD 730,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct 

 

 

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)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

Identification details  Bottom of Form

 

 

Verified Address

 

Subject name                            DELCOM OILFIELD SERVICES SDN. BHD.

Business address                      No. 2, Jalan Bangsar Utama 9

Bangsar Utama

Town                                         Kuala Lumpur

Province                                    Wilayah Persekutuan

Zip/postal code                          59000

Country                                     Malaysia

Tel                                            +60 3 22957788

Fax                                           +60 3 22957777

Email                                        info@deleum.com 

Website                                    www.deleum.com 

 

Registered address                    No. 2, Jalan Bangsar Utama 9

Bangsar Utama

Town                                         Kuala Lumpur

Province                                    Wilayah Persekutuan

Zip/postal code                          59000

Country:                                    Malaysia

Comments                                                      The provided address belongs to the Subject's branch office and workshop.

 

 

Summary details

 

Executive Summary

 

Date founded or registered                     20/03/1978

Legal form                                            Private Limited Company Limited By Shares

Chief executive                                      Nan Yusri Bin Nan Rahimy

Issued & paid up capital                         MYR 20,000,000

Sales turnover                                        MYR 49,165,313 (Non-consolidated 12 months, 31/12/2010)

Net income                                            MYR 4,668,951 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets                                   MYR 77,144,086 (Non-consolidated 12 months, 31/12/2010)

Line of business                         Provision of wireline equipment and services, integrated wellhead

maintenance services.

Staff employed                                       456 (Deleum Group)

 

 

Credit risk opinion

 

Company Analysis

 

Country risk                               Country risk is minimal

Operation trend                          Operational trend is steady

Management experience Management is adequately experienced

Financial performance                Financial performance is good

Organisation structure                Organisational structure is stable

Detrimental records                    No detrimental records found

Payment history                                    No payment delays noted

Credit amount suggestion     USD 730,000

Credit amount asked                  Not described.

Comments                                Larger credit can still be considered. The Subject is well positioned in the market

and the financial stability of the group is positive.

 

 

Statutory details

 

Registry Data

Registration date                                   :   20/03/1978

Legal form                                            :   Private Limited Company Limited By Shares

Registration no                                         38274-D

Registered authority                              :   Companies Commission of Malaysia

Registry status                                     :   Live/Active

Previous name                                      :   The Subject was established under the name CAMCO (MALAYSIA) SDN. BHD. on 20-03-1978 and changed to current style on 29-05-2001.

Change of legal form                                                                                   :   None reported.

 

 

Management / directors

 

Key Management

 

Name                            Nan Yusri Bin Nan Rahimy

Designation                   Managing

 

Director Name               Ahmad Uzhir bin Khalid

Designation                   Chief Operating

 

Officer Name                 Mohd Fadzli Bin Hamidun

Designation                   General Manager

 

 

 

Board of directors / other appointments

 

Appointments

 

Name                            Dato’ Izham bin Mahmud

Designation                   Director

Identification no  :           410111-09-5017

Appointment date           17/09/09

Address                        12 Jalan U-Thant

55000 Kuala Lumpur Wilayah Persekutuan Malaysia

Biography                      Dato’ Izham bin Mahmud, a Malaysian, aged 70, was appointed to the Board of Deleum

Berhad on 21 December 2005. He holds a Bachelor of Science Degree (Honours) in Economics from Queen’s University Belfast, UK and a Master of Arts (Economics Development) from Vanderbilt University, USA. He is one of the co-founders of Delcom Services Sdn. Bhd. (“DSSB”), now a wholly owned subsidiary of Deleum Berhad, via his family holding company IM Holdings Sdn. Bhd.

 

Dato’ Izham joined the Federal Treasury in 1965 and attained the level of Principal Assistant Secretary before being seconded to the Malacca State Development Corporation as General Manager in 1972. He embarked on his banking career in 1974 when he joined Aseambankers Malaysia Berhad where he served as General Manager and later Managing Director in 1979 until his retirement. During this period, he also served as Director of various subsidiaries of the Maybank Group and Cagamas Berhad.

Upon his retirement in 1996, he joined DSSB as its Chairman and was subsequently appointed Executive Chairman in 2000. He was the Executive Chairman of Deleum Berhad until his retirement on 31May 2010 and subsequently  became the Non-Executive Chairman. He also served as a Director of RHB Capital Berhad, RHB Bank Berhad, Renong Berhad and Opus Berhad.Currently, Dato’ Izham sits on the Boards of AMMB Holdings Berhad and AmInvestment Bank Berhad.

 

 

Name                         :      Datuk Vivekananthan A/L M.V. Nathan

 

Designation                :      Director

 

Identification no           :      410505-10-5417

 

Appointment date        :      17/09/09

 

Address                     :      No.3 Jalan Chanderai 3

Lucky Garden Bangsar

59100 Kuala Lumpur Wilayah Persekutuan Malaysia

Biography                   :      Datuk Vivekananthan a/l M. V. Nathan, a Malaysian, aged 69. He is one of the co-founders of DSSB. He joined ESSO Malaysia in 1962 in the Instrumentation and Electrical Engineering Services Department and undertook assignments at ESSO refineries in Malaysia and Thailand. He then worked for Mobil Refinery, Singapore and subsequently as Project Engineer with Avery Laurence (S) Pte. Ltd. on various projects in Brunei, Thailand and Indonesia and also attended training in Japan with Yokogawa Electric Works. He later joined Teledyne Inc. and was based in USA for training in management before being posted as its Marketing Director of the Far East Operations.

 

In 1982, together with his founding partners he spearheaded DSSB’s venture into the oil and gas industry and was appointed as its Managing Director and later re-designated as President. He was the Deputy Executive Chairman of Deleum Berhad until his retirement on

31 May 2010 and subsequently became the Non-Executive Deputy

Chairman.

 

He sits on the Board of WGC 2012, a company limited by guarantee, set up by the Malaysian Gas Association to organise the 25th World Gas Conference (“WGC”) in Kuala Lumpur in 2012. He also sits on the Boards of Malaysia Deepwater Production Contractors Sdn. Bhd. and Malaysia Deepwater Floating Terminal (Kikeh) Ltd.

 

 

Name                         :      Mohd Fadzli Bin Hamidun

 

Designation                :      Director

 

Identification no           :      690417-06-5151

 

Appointment date        :      28/04/10

 

Address                               Lot 2685, Jalan Taman Boulevard Utama

      Taman Boulevard

     98000 Miri Sarawak Malaysia

Name                         :      Nan Yusri Bin Nan Rahimy

 

Designation                :      Director

 

Identification no           :      710725-03-5785

 

Appointment date        :      22/08/07

 

Address                     :      No.1-9 Sutramas Condominium

Jalan Dutamas Melati

Off Jalan Dutamas Raya

Segambut 51200 Kuala Lumpur

Wilayah Persekutuan

Malaysia

 

Biography                   :      Nan Yusri bin Nan Rahimy, a Malaysian, aged 39. Mr. Nan Yusri Bin Nan Rahimy serves as Group Managing Director and Executive Director at Deleum Bhd since March 1, 2011. He holds a Bachelor of Engineering Degree (Honours) in Mechanical Engineering from the RMIT University (formerly known as Royal Melbourne Institute of Technology), Australia and is a member of the Society of Petroleum Engineers. He started his career with DSSB, in April 1996 as a Marketing Executive supporting the turbomachinery business and was later re-designated to Application Engineer in November 1996. He had held several senior positions within the Group since then including Senior Marketing Manager, Assistant Vice President – Business Development, Vice President – Exploration and Production and Chief Operating Officer – Oilfield Services. In August 2009, he was promoted to Chief Executive Officer of Delcom Oilfield Services

Sdn. Bhd., another wholly-owned subsidiary of Deleum Berhad and in September 2010 promoted to Chief Executive Officer of DSSB before being appointed to his current position on March 1, 2011.

 

Name                            Lee Sew Bee

Designation                   Company Secretary

Identification no              611101-10-7118

Appointment date           07/08/89

Address                        No. 7, Villa Damansara

Jalan Camar 4/25

Kota Damansara

47810 Petaling Jaya Selangor Darul Ehsan Malaysia

 

Staff employed   :           456 (Deleum Group)

 

Key Advisors

Auditors                        PRICEWATERHOUSECOOPERS Level 10, 1 Sentral

Jalan Travers, Kuala Lumpur Sentral

50706 Kuala Lumpur

Malaysia

 

Solicitors                       Zain & Co.

6th and 7th Floors

Akademi Etiqa

23 Jalan Melaka

50100 Kuala Lumpur

Malaysia

 

 

 

Share capital

 

Composition

Authorized Capital                      MYR 25,000,000

No of shares                              25,000,000 Ordinary Shares

Share par value  :                       MYR 1

Issued capital                            MYR 20,000,000

Paid up capital                           MYR 20,000,000

Changed in capital                     The Subject increased share capital from MYR 1,000,000 to MYR 25,000,000 on

26-02-2009.

 

 

Ownership / shareholders

 

How listed         :   Full List

 

 

Composition

Shareholder name          DELCOM SERVICES SDN. BHD.

Address                        No. 2, Jalan Bangsar Utama 9

Bangsar Utama

59000 Kuala Lumpur Wilayah Persekutuan Malaysia

No. of shares                 20,000,000 Ordinary Shares

 

% of shares                            100%

 

 

 

Related companies & corporate Affiliations

 

Structure

Name    :   DELEUM BERHAD Affiliation type       :   Ultimate Holding Company Address     :   No. 2, Jalan Bangsar Utama 9

Bangsar Utama

59000 Kuala Lumpur Wilayah Persekutuan Malaysia

 

Comments                                            Deleum Berhad was incorporated in Malaysia under the Companies Act

on 23 November 2005 as a private limited company under the name of Deleum Sdn. Bhd. Subsequently, on 15 September 2006, it was converted to a public limited company and assumed its present name of Deleum Berhad.

 

Deleum Berhad is an investment holding company and through its subsidiaries,

 

provides a diverse range of supporting specialized products and services for the oil and gas industry, particularly the exploration and production of oil and gas.

 

The history of Deleum Group’s participation in the oil and gas industry dates back to 1982 where its wholly-owned subsidiary Delcom Services Sdn Bhd established itself in the Malaysian Oil and Gas Industry.

 

The principal business activities of Deleum Group cover the following areas:-

 

1) Gas turbine technical services

 

2) Subsea production and development

 

3) Exploration and production equipment and services

 

4) Gas turbine packages specialised products and services

 

5) Oilfield chemical and services

 

Deleum Group’s other business activities through its associate corporations includes bulking services and Independent Power Production.

 

With over 25 years of experience in the oil and gas industry, Deleum Group has become a provider of supporting specialized products and services to the oil and gas industry.

 

Deleum Berhad is listed in Bursa Malaysia Stock Market.

 

 

Name                                                 :   DELCOM SERVICES SDN. BHD. Affiliation type                                     :   Parent Company

Address                                                No. 2, Jalan Bangsar Utama 9

Bangsar Utama

59000 Kuala Lumpur Wilayah

Persekutuan Malaysia

 

Comments                                           Provision of specialized equipment and services to the oil and gas

                                                          industry.

 

 

Name                                                    ROTARY TECHNICAL SERVICES SDN. BHD.

Affiliation type                                        Company

Address                                                Malaysia

Comments                                            Servicing, repair and maintenance of motors, generators, transformers,

pumps and valves.

 

Name                                                    DELCOM SERVICES HOLDINGS LIMITED

Affiliation type                                        Sister Company

Address                                                Hong Kong

Comments                                                                              Investment holding.

Name                                                    TURBOSERVICES OVERHAUL SDN. BHD.

Affiliation type                                        Sister Company

Address                                               :   Malaysia

Comments                                           :   Provision of gas turbine overhaul and maintenance services.

 

Name                                                    TURBOSERVICES SDN. BHD.

Affiliation type                                        Sister Company

Address                                               :   Malaysia

Comments                                           :   Provision of gas turbine overhaul and technical services and supply of gas turbine parts to the oil and gas industry.

 

 

Name                                                    DELCOM HOLDINGS SDN. BHD.

Affiliation type                                        Sister Company

Address                                               Malaysia

Comments                                           Investment holding.

 

 

Name                                                    MALAYSIAN MUD AND CHEMICAL SDN. BHD .

Affiliation type                                        Sister Company

Address                                               Malaysia

 

Comments                                           Operation of a bulking installation, offering dry and liquid bulking

                                                            services to offshore oil exploration companies.

 

Related companies and corporate  affiliations

comments                                Other companies of the Deleum Group should be considered affiliates of the

Subject.

 

 

Bank & mortgages

 

Bank Details

 

Name of bank    :   HSBC Bank Malaysia Berhad

Address            :   Malaysia

Account details  :   Current Account

 

Name of bank    :   Malayan Banking Berhad

Address            :   Malaysia

Account details  :   Current Account

 

Comments                                            :   It is generally not the policy of local banks to provide credit status

information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

 

 

Mortgages

Total amount of the indebtedness as of 31-12-2010 was MYR 13,760,000.

 

Total of Charge: OPEN CHARGE

Date of Creation: 01/04/2009

Name of Chargee: HONGKONG BANK MALAYSIA BERHAD C

harge Status: UNSATISFIED

 

Total of Charge: OPEN CHARGE

Date of Creation: 01/04/2009

Name of Chargee: HSBC AMANAH MALAYSIA BERHAD

Charge Status: UNSATISFIED

 

 

Legal Fillings

Bankruptcy fillings          None reported.

Court judgements           None reported.

Tax liens                       None reported.

Others                          None reported.

 

 

financials

 

Description

 

Source of financial statement                 :   Commercial Registry Filings

 

Financial statement date                        :   31/12/10

 

Type of accounts                                   :   Full audited

 

Currency                                              :   Malaysia, Ringgit (MYR)

 

Exchange rate                                      :   1 USD = MYR 2.98 as of 05-09-2011

 

Consolidation type                                                      :

Non Consolidated

Non Consolidated

Group Consolidated

Currency           :

Malaysia, Ringgit (MYR)

Malaysia, Ringgit (MYR)

Malaysia, Ringgit (MYR)

Denomination                                                      :

(x1) One

(x1) One

(x1) One

Date of financial year end                                                      :

31/12/10

31/12/09

31/12/10

Length of accounts                                                      :

12 months

12 months

12 months

Sale turnover / Income                                                      :

49,165,313

53,514,596

399,045,384

Gross profit                                                      :

 

 

75,950,032

Profit before tax                                                      :

6,045,172

9,012,102

37,594,103

Net income                                                      :

4,668,951

6,582,247

27,278,162

Non current assets                                                      :

49,984,660

54,156,377

137,009,602

Current assets                                                      :

27,159,426

25,345,736

214,155,698

Inventories                                                      :

 

 

9,045,679

Total assets                                                      :

77,144,086

79,502,113

351,165,300

Current liabilities                                                      :

26,389,712

29,945,646

130,128,839

Non current liabilities                                                      :

16,360,133

20,055,100

20,494,325

Total liabilities                                                      :

42,749,845

50,000,746

150,623,164

Share equity                                                      :

34,394,241

29,501,367

200,542,136

Retained earning                                                      :

14,394,241

9,501,367

125,476,650

Comments                                             :   The non-consolidated financial information above relates to the

                                                             Subject only.

 

The group’s consolidated financial information above relates to the Subject’s Ultimate Holding Company Deleum Berhad and all its subsidiaries which include the Subject.

 

 

Operation details

 

Main activities                                       :   The Subject main activities is provision of wireline  equipment and services, integrated wellhead maintenance services and other oilfield equipment and technical services to the oil and gas industry.

 

The Subject is part of Deleum Berhad which is a Malaysia based investment holding company. The Company operates in three segments: provision of specialized equipment and services, which consists of provision of subsea production development, gas turbine packages and umbilicals; provision of oilfield equipment and services, which consists of

provision of wireline and wellhead equipment and related services, offshore drilling rig operations, gas turbine overhaul, supply of gas turbine parts and other oilfield equipment and technical services, and provision of oilfield chemicals and services to the oil and gas and general industries, which include the development and provision of solid deposit removal solutions and specialty chemicals. Its subsidiaries are Delcom Services Sdn. Bhd., Delcom Services Holdings Limited, Turboservices Overhaul Sdn. Bhd. and Delflow Solutions Sdn. Bhd.

 

Product & services                                 Wireline Services:

Various down hole surveys (Slick line) Memory production Logging Tool Memory Imaging Tool

Mechanical Caliper Survey

Wireline fishing/Hydraulic mast

Wellhead Maintenance Services:

Wellhead maintenance (Christmas trees)

Corrective maintenance of high pressure gate valve.

Planned maintenance

 

Purchases

 

International                                          :   Mainly from United States

 

 

Sales

 

Local                                                    :   Yes

 

International                                          :   No exports.

 

 

Property & Assets

 

 

Premises                                              :   The Subject operates from group headquarters located at the verified heading address consisting of administrative office.

Branches                                              :   In addition the Subject operates from workshop facilities and branch office located at:

 

Lot 1315, Miri Waterfront

Commercial Centre

98008 Miri, Sarawak

Malaysia

 

Tel: +60 85 413528/417020

Fax:+60 85 418037

 

 

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                         :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$ 136.1 billion as of 15 August 2011

 

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   442.01 billion of International dollars

 

GDP per capita - current prices              :   US$ 8,624

 

GDP - composition by sector                  Agriculture: 9.4%

Industry: 40.9%

Services: 49.7%

Inflation :                                   2008: 5.4%

2009: 0.6%

2010: 1.7%

 

Unemployment rate                    2008: 3.3%

2009: 3.6%

2010 : 3.3%

 

Public debt

(General Government gross

debt as a % GDP)                                  2008:  42.8 %

2009:  55.4 %

2010:   54.2 %

 

Government bond ratings                        Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares      US$

 

Largest companies in the country            :   CIMB Group Holdings (Banking), Sime Darby (Conglomerates),

Public Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

 

Total exports                                         :   US$210.3 billion

 

Exports commodities                             :  electronic equipment, petroleum and liquefied natural gas, wood and woodproducts, palm oil, rubber, textiles, chemicals

Total imports                                         :   US$156.2 billion

 

Imports commodities                             : electronics, machinery, petroleum products, plastics, vehicles, iron andsteel products, chemicals

Export - major partners                          :   US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, HongKong 4.6%

Import - major partners                           :   Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan

5.7%,Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows                                            2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows                                          2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business           :   21 out of 183 countries

 

Global competitiveness ranking              :   26 (ranking by country on a basis of 133, the first is the best)

 

 

Country and Population Overview

 

Total population                                    :   28.23 million

 

Total area                                             :   329,847 km2

 

Capital                                                 :   Kuala Lumpur

 

Currency                                                                                                      :   Malaysia Ringgits (MYR)

 

Internet users as % of total population     : 57.61 %

 

 

Payments history

 

Purchase Term

International       :   Credit 30-45 days

 

Sales Term

Local    :   Credit 30-45 days

 

Trade Reference/ Payment Behaviors

Comments        :   As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

 

Investigation Note

 

Sources                                               :   Interviews and material provided by the Subject

 

:   Other official and local business sources

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.13

UK Pound

1

Rs.74.18

Euro

1

Rs.64.88

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.