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Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
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Name : |
GADIV PETROCHEMICAL INDUSTRIES LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.04.1978. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of a wide
range of petrochemical products |
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No. of Employees : |
95 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Exists |
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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A2 |
A2 |
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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 |
GADIV PETROCHEMICAL INDUSTRIES LTD.
Telephone 972 4 878 81 11; 878 81 45; 878 88 86
Fax 972 4 878 80 18
Haifa Bay Industrial Zone
Originally
established as a private limited company, registered as such as per file No. 51-078081-0
on the 18.04.1978.
Converted into a public limited company and registered as such as per file
No. 52-004095-7 on the 11.01.1994.
Early in 1994
subject took over all activities of the petrochemical division of its sister
company, GADOT PETROCHEMICAL INDUSTRIES LTD. (established in 1974).
Originally
registered under the name of GADIV LTD., which changed to GADOT AROMATIC
DEVELOPMENT (GADIV) LTD. on the 25.05.1978, which changed to the present name
on the 02.03.1994.
Authorized share capital
45,000,000 ordinary
shares of
Company is fully
owned by OIL REFINERIES LTD. (known in short as ORL, or BAZAN), a public limited
company whose shares are traded on the Tel Aviv Stock Exchange, controlled by:
1. ISRAEL
CORPORATION LTD., 37.08%, a public company whose shares are traded on TASE, controlled (some 52%) by the OFER Group, owned by the Ofer family and
controlled by Idan Ofer (mainly) and
2. ISRAEL PETROCHEMICAL ENTERPRISES LTD. (IPE),
30.72% (of which 12.96% via fully owned PETROLEUM CAPITAL HOLDINGS LTD. (PCH)),
a public company whose shares are traded on TASE, controlled by MODGAL
INDUSTRIES (99) LTD. (60.9%, controlled by the David Federman & family,
Jacob Gotenstein and Alex Pasal), ORL (12.3%) and KETER PLASTIC LTD. (6.7%,
owned by the Segol family).
On 30.12.2009, a transaction was finally
completed where ORL acquired from IPE 50% in subject’s sister company CARMEL OLEFINS LTD., reaching 100%,
in a share swap transaction: in return IPE was allocated 17.75% of ORL (new)
shares valued of
1.
Yossi Rosen, Chairman of ORL,
2.
Pinchas Buchris, General Manager of ORL,
3.
Arie Ovadya,
4. Eran Schwartz,
5. Charlie Shefer,
6. Yachin Cohen,
7. David Federman,
8. Arie Silberberg.
Ronen Zitrer.
Developers, manufacturers, exporters and marketers of a wide range of
petrochemical products, including aromatics, aliphatic solvents and
intermediates for the chemical, pharmaceutical, plastic and food industries.
Subject produces 571,000 tons of products in 2011 (421,000 tons in 2010).
Subject’s main supplier is its parent company, ORL.
ORL also provides management administrative services to subject (for fixed
fee).
Sales are to the plastics and chemical industries. Some 96.1 % of sales in
2011 were exports (94.9% in 2010), to 30 countries, mainly to Mediterranean
countries and Western Europe, as well as
Operating from premises, on an owned area of 86,000 sq. meters, in
Hahistadrut Avenue, Haifa Bay Industrial Zone,
Having 95 employees (had 94 employees in end of 2010).
There are over 1,4,31 employees in the ORL Group.
Subject’s accrued orders as of March 2011
are US$ 493 million.
Assets attributed to the Aromatics segment
(subject) in ORL financial statements for 31.12.2011 are US$ 301 million (US$
268 million as of 31.12.2010).
Financial data is included in the
consolidated statements of parent company OIL REFINERIES LTD., which shows:
US$
(thousands)
31.12.2010 31.12.2011
ASSETS
Current assets
Cash and cash equivalents 6,704 20,465
Deposits & financial assets in fair
value 261,463 141,459
Customers 366,227 561,403
Other debtors 98,241 147,328
Inventories 1,200,922 1,080,129
Current tax assets 1,819 3,528
1,935,376 1,954,312
Non-current
assets
Fixed assets, net 2,030,414 2,245,194
Other non-current assets 407,756 305,924
2,438,170 2,551,118
4,373,546 4,505,430
======== ========
LIABILITIES
Current
liabilities 1,613,880 1,772,071
Non-current
liabilities
Debentures 872,421 665,147
Long-term liabilities for banks 624,468 915,359
Other non-current liabilities 139,031 135,296
1,635,920 1,715,802
Equity 1,123,746 1,017,557
4,373,546 4,505,430
======== ========
ORL current market value US$ 1,461.6 million.
Subject is an “Approved Enterprise” and as such entitled to tax benefits
and State incentives.
There are no charges registered on the subject’s assets.
(attributed for subject*) Statement
of Income
US$
(thousands)
Year
ended 31.12
2009 2010 2011
Revenues 402,000 484,000 787,000
Gross profit 55,000 50,000 68,000
Operating profit 27,000 23,000 39,000
Net income 27,248 24,598 30,051
======== ======== =======
* The data is taken from parent ORL financial statements, the
Petrochemical/ Aromatics segment
OIL
REFINERIES LTD.
Consolidated
Statement of Income
US$
(thousands)
For Year ended on 31.12
2009 2010 2011
Income 5,141,480 6,791,809 9,561,601
Gross profit
(loss) 262,549 203,031 158,154
Operating
profit (loss) 357,297 45,794 127
Profit (loss)
before income tax 336,546 (4,839) (110,923)
Net profit
(loss) 349,244 76,780 (87,076)
========= ========= =========
OIL REFINERIES LTD., dealing in refining, production, trade,
export and marketing of crude oil and its products according to a franchise
received to build, operate and maintain installations and auxiliary plants for
refining oils and minerals. Operates in 3
divisions/ sector: Refinery (ORL), Trade and Petrochemical. Petrochemical
products are handled via subsidiary CARMEL OLEFINS (polymers), Subject
(aromatics) and HAIFA BASIC OILS (oils and waxes). Subsidiaries:
CARMEL OLEFINS LTD., 100% (and its subsidiaries)
manufacturers and marketers of raw materials for the plastic and petrochemical industries.
GADOT BIOCHEMICAL INDUSTRIES LTD., 23.6%, biochemical
acids and salts manufacturing, publicly traded on TASE, current market value US$
36.2 million.
HAIFA BASIC OILS LTD. (HBO), 100%, manufacturers,
exporters and marketers of basic oils, process oils, paraffin waxes and wax
additives (for the candles industry).
Fully owns HABOL TRADE & INSURANCE LTD. (
UNITED OIL EXPORT CO. LTD., 25%, ships refueling.
TANKER SERVICES LTD., 25%, operating leased tankers.
PAMA (PITUACH MASHABEI ENERGIE) LTD. 25%, non-active.
MERCURY AVIATION LTD., 31.25%.
O.R.L SHIPPING LTD., 100%.
MERCURY AVIATION (
GADOT BIOCHEMICAL INDUSTRIES LTD., 23.6%, biochemical
acids and salts manufacturing.
ISRAEL PETROCHEMICAL ENTERPRISES LTD. (IPE), 12.3%, a holdings publicly traded company (TASE,
current market value US$ 66.6 million). Main other holdings
–besides ORL- are 23.7% in AVGOL LTD. (publicly traded on TASE, manufacturers, exporters and marketers of non-woven fabrics, current market value US$
246.2 million) and in real estate.
PETROLEUM CAPITAL HOLDINGS LTD. (PCH), a holding
company.
ISRAEL CORPORATION LTD., controlled by Ofer family. Current market
value US$ 5,197.5 million. A public holding company.
Bank Leumi Le’Israel Ltd., Main Branch (No. 876),
Israel Discount Bank Ltd., Main Branch (No. 070),
Bank Hapoalim Ltd., Main Branch (No. 700),
The First International Bank of Israel Ltd., Main Branch (No. 006),
There are several lawsuits against subject and the ORL
Group, mainly environmental related ones, though none of them seem to be
significant. During 2009 subject received warnings from the Ministry of Environment
regarding its environment violations. Subject cooperates with the Ministry and
acts accordingly.
Apart from that, nothing unfavorable learned.
Subject is part of the ORL Group, which is considered to be the largest and
leading in oil refinery and by-products in
Subject is the sole local aromatics products
manufacturer and as such has been declared a monopoly.
In the
Subject meets the ISO 9000 standard of quality.
THE ISRAEL CORP. is
Both the OFER BROS. and the FEDERMAN Groups are well known holdings,
investment and industrial groups operating in
The Federman family,
which controls IPE, is a well-known wealthy family, and David Federman is
respected businessman with holdings in
In February 2007 the State sold its shares (100%) in OIL REFINERIES (ORL), in consideration of US$1.57 billion. The shares were offered to the
public through the Tel Aviv Stock Exchange. A group of investors,
headed by ISRAEL CORP. acquired the control in the company, jointly with IPE.
On 30.12.2009, after all administrative
obstacles removed, transaction was finally completed where ORL acquired from
IPE 50% in its 50% subsidiary CARMEL OLEFINS LTD., reaching 100%, in a share swap transaction: in
return IPE was allocated 17.75% of ORL’s (new) shares valued
In September 2007, subject signed a memorandum of
intent (MoI) for the acquisition of 50% of a Chinese company, manufacturers of
solvents (Trimellitic Anhydride –TMA), for US$ 33.5 million. The terms of the
MoI terminated in end of November 2007 and thus far the final agreement on the
TMA project has not been signed.
In June 2009 ORL Board approved,
based on a broad strategic plan, the investment of US$ 500 million in the
erection of a new facility for refined oil products with total, designed to
operate by 2011 (US$ 37 million have already been invested). As a result, ORL
has been seeking credit facilities (Export Credit Agencies) for financing the
project (on top of the capital raised in December 2007) from the public.
In November 2009 it was reported that
subject is suing several insurance companies for NIS 130 million for
compensation for a power cut to subject's plant.
In June 2009 ORL’s Board approved, based on a broad strategic plan, the investment of US$
500 million in the erection of a new facility for refined oil products with
total, designed to operate by 2011 (US$ 37 million have already been invested).
As a result, ORL has been also seeking credit facilities, on top of
the capital raised in December 2007 from the public. In February 2010 ORL
announced on signing a binding principles letter with a funding consortia
headed by BANK HAPOALIM LTD. for credit line of US$ 600 million (no guarantees).
In addition, another US$ 300 million credit (for equipment purchase) is
underway from American EXIM jointly with other Export Credit Agencies in
Europe.
ORL suffered in 2011 from the volatility in
the global oil markets and decrease in refining margins, resulting in losses
(as above).
Good for trade engagements.
Maximum unsecured credit recommended up to
several US$ million.
Note: Since the beginning of 2012 Israel Post started
using a new area code method of 7 digits (the old method of 5 digits will still
be valid till end of 2012).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.04 |
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1 |
Rs.81.08 |
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Euro |
1 |
Rs.67.39 |
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.