MIRA INFORM REPORT

 

 

Report Date :

30.10.2012

 

IDENTIFICATION DETAILS

 

Name :

JX NIPPON OIL & ENERGY CORPORATION

 

 

Registered Office :

 

JX Bldg, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

 

 

Country :

Japan

 

 

 

 

Financials (as on) :

31.03.2012

 

 

 

 

Date of Incorporation :

April  2010

 

 

 

 

Com. Reg. No.:

0100-01-130819 (Tokyo-Chiyodaku)

 

 

 

 

Legal Form :

Limited Company

 

 

 

 

Line of Business :

Petroleum refining, import of LPG/LNG, petrochemical products

 

 

 

 

No. of Employees :

6,338

 

 

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

 

JX NIPPON OIL & ENERGY CORPORATION

(BORN BY THE MERGER OF: NIPPON OIL CORP & NIPPON MINING HOLDINGS INC)

REGD NAME:    JX Nikko Nisseki Energy KK

MAIN OFFICE:  JX Bldg, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

                                    Tel: 03-6275-5057     Fax: 03-3276-1260    

 

URL:                 http//:www.noe.jx-group.co.jp

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Petroleum refining, import of LPG/LNG, petrochemical products

 

BRANCHES

 

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka, Okinawa, other (Tot 23)

 

OVERSEAS

 

Abu Dhabi, Beijing, New Delhi, Ho Chi Ming, other.

 

FACTORIES

 

Muroran, Sendai, Negishi, Osaka, Mizushima, Marifu, Oita, Kawasaki,

Yokohama, Chita, Kashima

 

 

OFFICER(S)

 

SEIICHI ISSHIKI, PRES              Yasushi Kimura, ch

Yasuo Kamino, v pres                Michio Ikeda, v pres

Yukio Uchida, v pres                              Takeshi Kurosaki, v pres

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 8,348,621 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 139,437 M

TREND             STEADY                       WORTH            Yen 904,541 M

STARTED                     2010                             EMPLOYES      6,338

 

 

COMMENT

 

OIL REFINING, OWNED BY JX HOLDINGS INC. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

                       

                        Notes: Unit: In Million Yen

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

 

 

HIGHLIGHTS

           

            The subject company was established by the business integration between Nippon Oil Corporation and Nippon Mining Holdings Inc.  Simultaneously, the new firm founded Holding Company, JX Holdings Inc and became its consolidated subsidiary (See REGISTRATION).  Specializes in: petroleum/petrochemical refining, import/wholesale of LPG/LNG, gas & coal, supply of electricity, other.  Has about 35% market shares in fuel oils, such as gasoline, diesel/fuel oil, other.  Operates about 13,000 gas stations (“ENEOS”) nationwide.

 

 

FINANCIAL INFORMATION

 

            The financial results for Mar/2012 fiscal term amounted to Yen 8,348,621 million, a 13% up from Yen 7,359,322 million in the previous term.  Oil refinery sales increased in volume.  Price hikes of petroleum oils contributed.  The recurring profit was posted at Yen 204,929 million and the net profit at Yen 77,516 million, respectively, compared with Yen 208,549 million recurring profit and Yen 55,679 million net losses, respectively, a year ago. 

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 210,000 million and the net profit at Yen 80,000 million, respectively, on a 3% rise in turnover, to Yen 8,600,000 million.  Oil refinery sales will continue increasing in volume.

           

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

 

 

REGISTRATION

 

Date Registered:           Apr 2010

Regd No.:                       0100-01-130819 (Tokyo-Chiyodaku)

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　5,000 million shares

Issued:             　1,464,508,343 shares

Sum:                　Yen 139,437 million

Major shareholders (%): JX Holdings Inc* (100)

 

*.. Holding company founded thru business consolidation of Nippon Oil & Nippon Mining

Holdings in Apr 2010, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 100,000 million, sales Yen 10,723,889 million, operating profit Yen 327,844 million, recurring profit Yen 407,765 million, net profit Yen 170,595 million, total assets Yen 6,404,006 million, net worth Yen 1,696,072 million, employees 115, pres Isao Matsushita

 

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

 

 

OPERATION

 

Activities: Petroleum refining, import/export of oil/natural gas, petrochemical products, gas & coal, lubricating oil, LPG, supply of electricity, other (--100%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Shoji Sekiyu, Zen-Noh, Kamei Corp, Cosmo Oil, Idemitsu Kosan, Showa Shell Sekiyu, Tonen General Sekiyu, ENEOS Frontier, other

No. of accounts: 2,000 – 3,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Saudi Arabian Oil, Abu National Oil, Kuwait Petroleum, Idemitsu Kosan, Cosmo Oil, Nippon Oil, Kuwait Petroleum, other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

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.53.81

UK Pound

1

Rs.86.52

Euro

1

Rs.69.50

 

 

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.