MIRA INFORM REPORT

 

 

Report Date :

04.10.2012

 

IDENTIFICATION DETAILS

 

Name :

NIPPON GLOBAL TANKER CO LTD

 

 

 

 

Registered Office :

JX Nippon Oil & Energy Honsha, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

November 1978

 

 

 

 

Com. Reg. No.:

0100-01-135125 (Tokyo-Chiyodaku)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Tanker chartering, management, operation (consigned)

 

 

 

 

No. of Employees :

3

 

 

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

 

Status :

Satisfactory

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name and address

 

NIPPON GLOBAL TANKER CO LTD

REGD NAME:    Nippon Global Tanker KK

MAIN OFFICE:  JX Nippon Oil & Energy Honsha, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

Tel: 03-6275-5093

 

                        *.. Moved to the caption address in Apr 2010 from the former as given

                       

URL:                 http://www.neo.jx-group.co.jp (of the parent, JX Nippon Oil & Energy Corp)

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Tanker chartering, management, operation (consigned)

 

BRANCHES   

 

Nil

 

 

OFFICERS

 

KAZUYOSHI TAKAYAMA, PRES           

Masayoshi Ishino, v pres                        Hitoshi Tatsuma, dir

Koji Sakimoto, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 112,384 M

PAYMENTS NO COMPLAINTS   CAPITAL           Yen 50 M

TREND STEADY                       WORTH            Yen 957 M

STARTED         1978                             EMPLOYES      3

 

 

COMMENT

TANKER OPERATOR, OWNED BY JX NIPPON OIL & ENERGY CORP & COSMO OIL CO.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

HIGHLIGHTS

           

            The subject company was established by Nippon Oil Corp (See REGISTRATION) originally in 1978 as Nisseki Ryoyu Tanker Co Ltd, when Nippon Oil Corp absorbed Mitsubishi Oil Co, and in Nov 2000, merged with Cosmo Tanker Co Ltd, owned by Cosmo Oil Co Ltd and renamed as captioned.  Specializes in tanker chartering, management, operation (consigned), and serving for crude oil transportation for JX Nippon Oil & Energy Corp & Cosmo Oil Co Ltd. (See REGISTRATION).  The two had agreed business tie-ups, including crude oil purchasing, refining, distribution, oil transportation, lube oil sales, etc, already in Nov 1999, which lead to the merger of the two tanker companies to streamline transportation operations.  Because the Japanese government’s administrative guidance has required that an agreement to charter tankers to transport crude oil for an oil company should be signed by a tanker company, not by the oil company per se, or the consignor of crude oil; therefore, the oil company needs a company to charter and arrange for tankers to carry crude oil to Japan.  The subject contract long-term time charter agreement with shipping companies and consign actual operations to subsidiary shipping companies of both JX Nippon Oil & Energy Corp and Cosmo Oil.  Chartered crude oil tankers are reportedly 45 tankers, including crude oil carriers, chemical tankers.  The number of operating tonnage varies according to the season (peak season/slack season for oil demand), the firm says.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 amounted to 112,384 million, a 178% up from Yen 40,393 million in the previous term.  This is attributed to the increased transportation requirements due to the merger of Osaka Refinery by the parent.  The recurring profit was posted at  Yen 93 million and the net profit at Yen 57 million, respectively, compared with Yen 26 million recurring loss and Yen 32 million net loss, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 100 million and the net profit at Yen 65 million, respectively, on a 4% rise in turnover, to Yen 117,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Nov 1978

Regd No:             0100-01-135125 (Tokyo-Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         200,000 shares

Issued:                50,000 shares

Sum:                   Yen 50 million

 

Major shareholders (%): JX Nippon Oil & Energy Corp* (65), Cosmo Oil Co Ltd** (35)

No. of shareholders:  2

 

* JX Nippon Oil & Energy Corp, largest oil distributor in Japan, Tokyo, founded 1888, and in Apr 2010 merged with Nippon Mining Holdings Inc and renamed as JX Nippon Oil & Energy Corp, Tokyo, capital Yen 139,439 million, sales Yen 8,348,621 million, operating profit Yen 183,489 million, recurring profit Yen 204,929 million, net profit Yen 77,516, total assets Yen 1,943,403 million, net worth Yen 904,541 million, employees 7,064, pres Yasushi Kimura

Consolidated Financials are attached (See SUPPLEMENTS)

 

** Cosmo Oil Co Ltd, leading domestic capital oil refiner/distributor, Tokyo, founded 1939, listed Tokyo S/E, capital Yen 107,246 million, sales Yen 3,109,746 million, operating profit Yen 63,570 million, recurring profit Yen 61,420 million, net profit Yen 9,084 million, total assets Yen 1,675,070 million, net worth Yen 316,931 million, employees 6,247, pres Keizo Morikawa

           

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Tanker chartering, management, operation (consigned), currently operating a total 40-45 tankers (--100%).

 

Clients: [Oil refiners] JX Nippon Oil & Energy Corp, Cosmo Oil, other 

No. of accounts: 2

Domestic areas of activities: Nationwide

Suppliers: [Ship owners, operators] Nippon Yusen Kaisha, Mitsui-OSK, JX Tanker Co, Kyoei Tanker, Shinwa Kaiun, Kawasaki Kisen, Iino Kaiun, NS United Kaiun, other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, JX Nippon Oil & Energy Corp, and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

Relations: Satisfactory.

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

117,000

112,384

40,393

11,537

Recur. Profit

　

100

93

-26

-8

Net Profit

　

65

57

-32

-10

Total Assets

　

　

17,158

15,808

14,774

Current Assets

　

　

17,158

15,808

14,772

Current Liabs

　

　

16,201

14,906

13,921

Net Worth

　

　

957

900

853

Capital, Paid-Up

　

　

50

50

50

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.11

178.23

250.12

4.88

    Current Ratio

 

..

105.91

106.05

106.11

    N.Worth Ratio

..

5.58

5.69

5.77

    R.Profit/Sales

 

0.09

0.08

-0.06

-0.07

    N.Profit/Sales

0.06

0.05

-0.08

-0.09

    Return On Equity

..

5.96

-3.56

-1.17

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, JX NIPPON OIL & ENERGY CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,348,621

7,359,322

 

  Cost of Sales

7,846,811

6,856,315

 

      GROSS PROFIT

501,809

503,007

 

  Selling & Adm Costs

318,320

299,540

 

      OPERATING PROFIT

183,489

203,466

 

  Non-Operating P/L

21,440

5,083

 

      RECURRING PROFIT

204,929

208,549

　

      NET PROFIT

77,516

85,679

BALANCE SHEET

 

 

 

 

  Cash

　

16,234

23,001

 

  Receivables

 

970,956

783,216

 

  Inventory

 

1,639,610

1,398,591

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,316,603

(200,020)

 

      TOTAL CURRENT ASSETS

3,943,403

2,004,788

 

  Property & Equipment

1,125,922

1,210,135

 

  Intangibles

 

32,017

33,285

 

  Investments, Other Fixed Assets

(1,157,939)

402,991

 

      TOTAL ASSETS

3,943,403

3,651,199

 

  Payables

 

629,632

523,138

 

  Short-Term Bank Loans

839,923

636,555

 

　

 

　

　

 

  Other Current Liabs

854,879

838,837

 

      TOTAL CURRENT LIABS

2,324,434

1,998,530

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

543,895

675,197

 

  Reserve for Retirement Allw

56,693

55,100

 

  Other Debts

　

113,839

78,536

 

      TOTAL LIABILITIES

3,038,861

2,807,363

 

      MINORITY INTERESTS

 

 

 

Common stock

139,437

139,437

 

Additional paid-in capital

427,488

427,488

 

Retained earnings

330,749

266,604

 

Evaluation p/l on investments/securities

　

　

 

Others

 

6,867

10,306

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

904,541

843,835

　

      TOTAL EQUITIES

3,943,403

3,651,199

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

904,541

843,835

 

 

Current Ratio (%)

169.65

100.31

 

 

Net Worth Ratio (%)

22.94

23.11

 

 

Recurring Profit Ratio (%)

2.45

2.83

 

 

Net Profit Ratio (%)

0.93

1.16

 

 

Return On Equity (%)

8.57

10.15

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.33

UK Pound

1

Rs.84.30

Euro

1

Rs.67.45

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.