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Report Date : |
05.11.2012 |
IDENTIFICATION DETAILS
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Name : |
DOR CHEMICALS LTD. |
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Registered Office : |
P.O. Box |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
30.10.1963 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Manufacturers, exporters and marketers of raw materials for the plastic and chemical fields, |
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No. of Employees : |
400 employees
serving DOR CHEMICALS Group (of which some 300 employees in DOR CHEMICALS and
rest in subsidiaries). |
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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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
Source : CIA
DOR CHEMICALS LTD.
Telephone 972
4 846 50 00
Fax 972
4 840 43 06; 841 85 61
"DOR FILM" Division
Telephone 972
4 995 44 16
Fax 972
4 955 35 55
Bar Lev Industrial Zone
MISGAV 2012500
Originally
established as a private limited company, incorporated as per file No. 51-041819-7 on the 30.10.1963.
Converted into a
public limited liability company and registered as such as per file No.
52-004237-5 on the 30.08.1995, and in parallel published a prospectus, offering
shares to the public on the Tel Aviv Stock Exchange.
In April 2010,
following a successful tender offer for subject's shares held by the public,
shares were de-listed from trade, and subject reconverted into a private
limited company (keeping the same registration number).
(Note:
According to the Registrar of Companies, subject status is still "public
limited liability company", however it appears that Registry’s data is not
updated).
Authorized share
capital
50,000,000 ordinary shares of
of which
42,257,182 shares amounting to
1. SAURON LTD., 50%, fully owned
by Dr. David Dankner,
2. A.M.T. (G.D.) LTD., 50%, owned
by Gil Dankner, son of Dr. David Dankner.
The tender offer by a/m shareholders for the shares held by the public
(some 2.5%) was in consideration of
1.
Gil Dankner, Chairman,
2.
Eliezer Sandberg,
3.
Dr. David Dankner,
4.
Arie Shraga,
5.
Shmuel Dankner,
6.
Zvi Mor,
7.
Ms. Orna Binmovich,
8.
Itzhak Dankner,
9.
Avraham Dankner,
10.
Avigdor Kelner,
11.
Amir Doron,
12.
Ms. Lea Dankner.
1.
Haim Rosenbaum, heading the Chemical sector,
2.
Dr. Sarah Hirsch, heading the Plastics (BOPP)
sector (including "Dor Film").
Manufacturers, exporters
and marketers of raw materials for the plastic and chemical fields,
specializing in:
1. Manufacturing,
importing and exporting of raw materials for the chemical and pharmaceutical
industries (e.g. methanol, MTBE, formalin, etc.).
2. Manufacturing
and marketing (since 1999) polypropylene multi layer sheets (BOPP), via
"Dor Film" Division.
50% of sales are
export.
As of September 2009 also operating in the field of recycling of
chemical products (see more in CHARACTER).
Also dealing in gas exploration (marginal
activity to-date).
Main clients: OIL
REFINERIES, PAZ ASHDOD REFINERY, CARMEL CHEMICALS, TEVA PHARMACEUTICAL
INDUSTRIES. Other clients: DORMEX TRADE & INVESTMENTS.
Main local
supplier:
Operating from
owned premises (headquarters and plant), on an area of 130,000 sq. meters, in
the Haifa Bay Industrial Zone, Haifa, and from a plant ("Dor Film"),
on an area of 40,000 sq. meters, in the Bar-Lev Industrial Zone, Misgav (the
address you provided us).
Having 400 employees serving DOR CHEMICALS Group (of which some 300
employees in DOR CHEMICALS and rest in subsidiaries).
Consolidated B/S
shows (latest published):
31.12.2009 31.03.2010
ASSETS
Current assets
Cash and cash equivalents 55,530 79,470
Customers 93,048 114,106
Shareholders 4,715 5,026
Other debtors 4,507 3,658
Stock 39,977 31,751
197,777 234,011
Non-current assets
Fixed assets, net 181,409 182,143
Real estate for investment 17,122 17,105
Intangible assets 14,121 13,817
Other non-current assets 2,593 3,047
215,245 216,112
413,022 450,123
======= =======
LIABILITIES
Current liabilities
Current maturity of LT debt 26,351 29,845
Suppliers and service
providers 38,258 52,828
Other creditors 40,096 42,020
104,705 124,693
Non-current liabilities 74,140 83,888
Equity 234,177 241,542
413,022 450,123
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DOR CHEMICALS
consolidated stock as of early 2012 was valued at
Subject’s market value
in March 2010, about a month prior to its delisting from trade stood on US$ 85
million.
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and State incentives.
The Israeli
Investment Centre (IIC) approved subject's US$ 30 million investment plan for
the Misgav plant in 1997 and subject’s plan to expand its "Dor Film"
plant, in an investment of US$ 21.32 million in December 2001.
In August 2010,
subject’s IIC approved a
There are 11
charges for unlimited amounts registered on the company's assets, in favor of
the State of Israel and local banks (last 2 charges placed October – November
2011).
REVENUES
Consolidated
Statements of Income
Year
ended December 31st
2007 2008 2009
Sales (net) 580,790 630,169 446,464
Gross profit 68,484 79,525 73,801
Operating income 39,451 44,845 40,351
Profit before taxes on income 31,563 39,131 38,301
Net income 24,503 35,374 35,275
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Consolidated
first 3 months of 2010 sales were
2010 sales claimed to be
DOR CHEMICALS
Group consolidated 2011 sales were
Note: Since 2011, consolidated sales includes
subsidiaries.
DOR CHEMICALS TRADING
(1996) LTD., 100%, importers and marketers of the intermediate material
methanol.
DOR FILM
INTERNATIONAL LTD., 100%, non-active.
DOR ECOLOGY LTD.,
100%,
MOBIPOWER LTD.,
22.72%,
CARMEL HATPALA
LTD., 33.3%,
TREOFAN FILM
INTERNATIONAL N.V., 0.41%.
CARMEL CHEMICALS
LTD., 100%, manufacturers, exporters and marketers of Amino Molding Compounds
and Urea and Melamine Formaldehyde Molding Compounds, which are chemical raw
materials for the plastic industry Fully owns KENYA INDUSTRIAL PLASTICS, of
CONLOG CONTROL
LTD., manufacturers of Cystrip - Plastic Media Blast.
Subject has
several holding in gas and oil exploration rights, among them 2.76% in MED
YAVNE gas exploration.
Dankner family has
other holdings as well.
Main accounts:
Bank Leumi
Le’Israel Ltd., Haifa Main Branch (No. 876),
The First International Bank of Israel Ltd.,
Haifa Main Branch (No. 006),
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Also operating with (minor activity):
Mercantile Discount Ltd.,
In 2005 it was
published that the Securities Authorities opened an investigation in suspicion
of violation of the securities laws, concerning improper supplier-client
relations between subject as supplier and (then) sister company CARMEL
CHEMICALS LTD as client. In December 2009, the General Attorney pressed charges
against seniors at subject for security laws violation, however the companies
-subject and CARMEL CHEMICALS, as well as shareholders/ directors David Dankner
and Gil Dankner were exempt from the indictment (in February 2012 the Court
convicted DOR's senior officials with heavy fines and on probation prison
sentences).
Despite our efforts, we were unable to speak
with subject's officials, as they were always unavailable. We left messages
which so far remain unanswered.
In April 2010,
after a long dispute, subject shares held by the public were acquired by the
Dankner family via SAURON LTD. and A.M.T. (G.D.) LTD. (after raising the sum
per share paid to the public holders), and were erased from trade.
Subject estimated
at 35% its market share in the local BOPP (Biaxially Oriented PolyPropylene)
market in 2010.
Subject's
subsidiary DOR CHEMICALS TRADING is the largest local importer of methanol,
with 90% of the market share, therefore considered a monopoly by the Anti-Trust
Authority (since 1989, where before its establishment, activities were handled
by subject).
According to a
report from March 2012,
Subject is ISO
9001:2008, ISO 14001:2004 and 18001:2007 certified.
Dankner family is a well-known wealthy family involved in
Between 2001-2002,
subject embarked upon an ambitious acquisition campaign of chemical companies abroad,
which later proved to be a grave blunder, mainly the acquisition in the
TRESPAPHAN Group (later consolidated as the TREOFAN Group), which was one of
the world’s largest polypropylene manufacturers.
The affair led to
several complications, investors' lawsuits and the Securities Authority
investigation against principals at parent company. Parent went through a
reorganization plan. Finally holdings in TREOFAN were diluted to 5% only, and
in September 2009 fell to 0.41% (from 51% originally).
These affairs had
not affected subject's operations.
During the last
several years, subject assumed its subsidiary DOR FILM INTERNATIONAL LTD
activities, and transferred it into subject's division "Dor Film".
In the beginning
of September 2007 subject announced it signed a cooperation agreement with a
subsidiary of EILAT ASHKELON PIPELINE CO. LTD. (a State-owned company,
operating the oil pipeline from the Eilat port in the South to the center of
the country), for establishing a new joint company which will built and operate
a chemical containers farm in Ashkelon.
Initial investment
in the project estimated at US$ 4.2 million.
In January 2009
subject signed an agreement to acquire from Mr. Itzhak Reuven all the
activities and assets of the companies he owns for total of
In February 2009
subject announced it signed an agreement with a main and long standing client,
OIL REFINERIES LTD. (ORL,
In July 2011 it
was reported that subject intends to erect a methanol production plant in Ramat
Hovav site, with the investment of US$ 700 million (US$ 400 million in another
report), intended to employ some 300 workers. Subject will apply for a grant
from the Israeli Investment Centre.
In connection with
the above, in March 2012 it was reported that subject requested the Government,
as well as the Antitrust Authority, to obligate the natural gas exploration and
production companies (especially those of the "Tamar" gas field,
which is the closest to utilization), to reserve a portion of the gas for the
local petrochemical industry with a special price.
In Parallel, In
May 2012 it was reported that subject is one of the bidders for the excavation
of the natural gas fields in
The local Chemical
industry is considered one of the strongest in the market, with impressive
growth trend in recent years. The chemical industry includes minerals
extracted, refinery and petrochemical industry, manufacturing of pesticides for
agriculture, pharmaceuticals and bio-technology industries, as well as other
consumer products related industries, including paints, cosmetics, cleaning
materials and others. The industry employs over 30,000 employees.
Total turnover of
the local Chemical Industry in 2008 amounted to US$ 26 billion, comprising some
30% of
The Chemical
sector recovered in 2010, where export of Industrial Chemicals rose by 34.3% from
2009, reflecting the recovery in global markets, and kept the upward trend in
2011, reaching US$ 16.5 billion, 18.6% up from 2010.
According to Central Bureau of Statistics data, investments
in imported machinery and equipment from for the Chemical Industries (incl.
Pharmaceuticals) in 2011 summed up to NIS 1,482.3 million, 44.8% increase in
real terms from 2010, reversing the trend from the last couple of years of
24.1% decrease in 2010 from 2009 and 0.5% decrease in 2009 from 2008.
Good for trade
engagements.
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.53.66 |
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1 |
Rs.86.37 |
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Euro |
1 |
Rs.69.24 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.