MIRA INFORM REPORT

 

 

Report Date :           

05.03.2012

 

IDENTIFICATION DETAILS

 

Name :

ORASCOM CONSTRUCTION INDUSTRIES SAE (OCI)

 

 

Formerly Known As :

Eng. Naguib Onsi Sawiris & Co

 

 

Registered Office :

Nile City Tower, 2005A Corniche El Nil, Mohandessin, Cairo 1121

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1950

 

 

Com. Reg. No.:

38824, Giza

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Construction services

 

 

No. of Employees :

2600

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 30,000,000

 

 

Status :

Good

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Egypt

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SUMMARY

 

Company Name                                     : ORASCOM CONSTRUCTION INDUSTRIES SAE (OCI)

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1950

Commercial Registration Number                        : 38824, Giza

Tax Card Number                                   : 200-011-057

Issued Capital                                        : £E 1,044,700,000

Paid up Capital                                      : £E 1,044,700,000

Total Workforce                                     : 2,600

Activities                                               : Construction services

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 30,000,000

 

COMPANY NAME

 

ORASCOM CONSTRUCTION INDUSTRIES SAE (OCI)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Nile City Tower

Street               : 2005A Corniche El Nil

Area                 : Mohandessin

Town                 : Cairo 11211

Country             : Egypt

Telephone         : (20-2) 24611111 / 24611112 / 24611113 / 24611279

Facsimile          : (20-2) 24619400 / 24619405 / 24619412 / 22619430

Email                : info@orascomci.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Cairo.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Nassef Onsi Sawiris                                                                          Chairman

 

·       Onsi Sawiris                                                                                     Director

 

·       Salman Butt                                                                                     Director

 

·       Osama Bishai                                                                                   Director

 

·       Hassan Abdulla                                                                                 Director

 

·       Jerome Guiraud                                                                                 Director

 

·       Sami Haddad                                                                                                Director

 

·       Aladdin Saba                                                                                                Director

 

·       Arif Naqvi                                                                                          Director

 

·       Dalia Khorshid                                                                                  Corporate Treasurer

 

·       Sameh Loza                                                                                     Human Resources Manager

 

·       Ashraf Abdel Momen                                                                         Corporate Legal Affairs Manager

 

·       Kevin Struve                                                                                      Strategic Planning Manager

 

·       Rawi Camel Toueg                                                                            Administration Manager

 

·       Hassan Badrawi                                                                                Business Development Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1950

 

History                         : Subject was established in 1950 under the name of “Eng. Naguib Onsi Sawiris & Co” as a Limited Liability Partnership. However on 30th March 1998 subject was re-registered as an Egyptian Joint Stock Company under the current style of “Orascom Construction Industries SAE (OCI)”

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 38824, Giza

 

Tax Card No.               : 200-011-057

 

Issued Capital              : £E 1,044,700,000

 

Paid up Capital            : £E 1,044,700,000

 

Name of Shareholder (s)                                                     Percentage

 

·       Members of the Sawiris Family                                                           55%

 

·       Abraaj Capital                                                                          6%

 

·       Local businessmen and private investors                                 39%

 

 

AFFILIATED COMPANIES

 

     Subsidiary Name                                                                Stake Held

 

·       OCI International Cyprus (OCIIC)                                             100.0%

·       OCI Finance Limited (OCIF)                                                   100.0%

·       Orascom Construction Industries Nigeria (OCIN)                        99.9%

·       Orascom Construction Industries Algeria (OCIA)                        99.9%

·       Orascom Industrial Investments                                                99.9%

·       Orascom Construction Industries – Egypt                                  99.9%

·       National Steel Fabrication                                                        99.9%

·       Orascom Roads Company                                                       99.9%

·       Orascom Fertilizer Plant Maintenance Company                        99.9%

·       OCI Construction – Egypt                                                        99.9%

·       Suez Industrial Development Company (SIDC)               60.5%

·       Sofert Algerie Company                                                           50.9%

·       OCI Besix                                                                               50.0%

·       OCI Tervi Skikda                                                                     50.0%

·       Orasqualia for the Development of Wastewater               50.0%

·       Alico Egypt                                                                             49.9%

·       United Company for Paints and Chemicals                                49.9%

·       Bentini Orascom Construction                                                  49.0%

·       United Holding Company                                                          27.2%

 

 

OPERATIONS

 

Activities: Orascom Construction Industries SAE (OCI) ranks among Egypt’s largest private sector businesses and is   active in construction services, cement manufacturing and infrastructure concessions. The company operates primarily as a construction company with the production and sale of cement as a significant segment of operations. The company is organised into three operating groups; the Construction Group, the Cement Group, and the Concessions and Other Building Materials Group.

 

·       OCI Construction Group

 

The OCI Construction Group provides engineering, procurement and construction services on large, complex and demanding projects for public and private customers primarily in the Middle East, North Africa and Central Asia. OCI has undertaken numerous landmark industrial, commercial and infrastructure projects including the world’s largest swing bridge over the Suez Canal and the three tallest buildings in Egypt.

 

This division also manufactures fabricated steel products as well as architectural curtain walling and window systems.

 

·       OCI Cement Group

 

The OCI Cement Group is the largest cement producer in the Middle East and a leading regional cement exporter.

 

Subject’s principal operating cement subsidiaries are Egyptian Cement Company, which has an installed annual production capacity of 8 million tons, and Algerian Cement Company, which has an installed annual production capacity of 5 million tons. The company are currently constructing cement plants in Pakistan, Kurdistan and Nigeria which will increase annual production capacity to 22.5 million tons. OCI export cement primarily from Egypt to customers in more than 30 countries including the USA, and also produce and distribute ready mix concrete and cement bags in Egypt and Algeria.

 

·       Concessions and Other Building Materials Group

 

This division consists of equity investments in companies which complement OCI’s construction activities. It also focuses on equity investments in long term infrastructure projects locally and regionally.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 2,600 employees, and the Orascom Group has over 40,000 workers.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E 000,000’s)

 

Consolidated Balance Sheet                                                               31/12/10            31/12/09

 

ASSETS

Non-current assets

Property, plant and equipment                                                                 18,605.7            14,990.9

Intangible assets                                                                                    11,062.3            9,873.7

Investment in associated companies                                                        2,676.0             2,104.7

Investments available for sale                                                                  406.8                253.0

Deferred tax assets                                                                                35.5                  38.1

Long-term receivables                                                                             339.0                247.4

Total non-current assets                                                                         33,125.3            27,507.8

Current assets

Inventories                                                                                             1,885.7             1,401.7

Marketable securities                                                                             96.5                  211.4

Trade and other receivables                                                                     11,451.7            9,749.9

Due from clients                                                                                     2,173.4             1,523.4

Cash on hand and at banks                                                                    5,649.4             5,924.6

Assets held for sale                                                                               397.8                538.7

Total current assets                                                                               21,654.5            19,349.7

Total assets                                                                                          54,779.8            46,857.5

 

EQUITY

Shareholders' equity

Share capital                                                                                         1,044.7             1,034.6

Reserves                                                                                               5,217.8 4           4,320.4

Retained earnings                                                                                  8,558.6             8,835.9

Net profit for the year                                                                              3,344.4             2,416.6

Cumulative adjustment on translation of foreign companies                        (151.6)              (14.5)

Own Shares                                                                                          (153.1)              (200.2)

Total shareholders' equity                                                                       17,860.8            16,392.8

Minority interest in subsidiary companies                                                 1,044.3             750.2

Total equity                                                                                           18,905.1            17,143.0

LIABILITIES

Non-current liabilities

Loans and bonds                                                                                   14,250.7            11,219.3

Provisions                                                                                             2,148.0             1,913.3

Other long-term liabilities                                                                        713.3                571.1

Deferred tax liabilities                                                                             773.0                581.7

Total non-current liabilities                                                                      17,885.0            14,285.4

Current liabilities

Bank overdraft and loans                                                                         3,342.2             2,266.1

Trade and other payables                                                                        10,345.9            8,493.5

Due to clients                                                                                        2,964.1             3,658.8

Provisions                                                                                             943.5                650.1

Income taxes payable                                                                            394.0                360.6

Total current liabilities                                                                             17,989.7            15,429.1

Total liabilities                                                                                        35,874.7            29,714.5

Total equity and liabilities                                                                        54,779.8            46,857.5

 

Consolidated Income Statement

 

Revenue                                                                                                27,552.4            21,312.8

Cost                                                                                                     (20,767.9)          (16,581.0)

Gross profit                                                                                           6,784.5             4,731.8

Add (Less)

Other operating income                                                                          20.7                  167.5

Selling, general and administrative expenses                                            (1,638.8)           (1,283.6)

Provision for claims and impairment of debts                                            (500.0)              (211.5)

Operating profit                                                                                      4,666.4             3,404.2

Interest income                                                                                      101.6                134.1

Interest expense                                                                                    (672.1)              (631.5)

(Losses) Gain on foreign currency exchange                                            (42.0)                35.4

Net finance cost                                                                                     (612.5)              (462.0)

Investments income                                                                               435.3                99.3

Income before taxes                                                                               4,489.2             3,041.5

Income tax expense                                                                               (840.1)              (491.3)

Net profit for the year                                                                              3,649.1             2,550.2

Attributable to:

Minority interests share in net profit of subsidiaries                                   304.7                133.6

Equity holders of the Company                                                                3,344.4             2,416.6

Net profit for the year                                                                              3,649.1             2,550.2

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       Delta International Bank

113 Corniche El Nil Street

PO Box: 1159

Cairo

Tel: (20-2) 25740831

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Orascom Construction Industries SAE (OCI) ranks among Egypt’s largest private sector businesses and is active in construction services, cement manufacturing and infrastructure concessions. The company operates primarily as a construction company with the production and sale of cement as a significant segment of operations. The company is organised into three operating groups; the Construction Group, the Cement Group, and the Concessions and Other Building Materials Group.

 

OCI is the largest cement producer in the Middle East and one of the top 200 construction contractors in the world.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.35

UK Pound

1

Rs.78.68

Euro

1

Rs.65.63

 

 

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.