MIRA INFORM REPORT

 

Report Date :

17.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MCDERMOTT MIDDLE EAST INC

 

 

Registered Office :

Sheikh Zayed Road, Plot No. 42, Jebel Ali Free Zone, P O Box 3098 & 16961, Dubai

 

 

Country :

United Arab Emirates 

 

 

Date of Incorporation :

April 1989

 

 

Com. Reg. No.:

300332, Dubai

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

Line of Business :

Engineering and construction services to the oil and gas industry

 

 

No. of Employees :

2,150 employees

 

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 :

Branch of a Foreign Registered Corporation

Payment Behaviour :

Regular

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

United Arab Emirates 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

United Arab Emirates - ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

SUMMARY

 

Company Name                                     : MCDERMOTT MIDDLE EAST INC

Country of Origin                                    : Panama

Legal Form                                            : Branch of a Foreign Registered Corporation

Start Date                                             : April 1989

Registration Date                                   : 18th October 1994

Commercial Registration Number            : 300332, Dubai

Trade Licence Number                            : 747

Chamber Membership Number                : 32237

Issued Capital                                        : UAE Dh 370,000,000

Paid up Capital                                      : UAE Dh 370,000,000

Total Workforce                                     : 2,150

Activities                                               : Engineering and construction services to the oil and gas industry

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 


COMPANY NAME

 

MCDERMOTT MIDDLE EAST INC

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Sheikh Zayed Road, Plot No. 42

Area                 : Jebel Ali Free Zone

PO Box             : 3098 & 16961

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 8835200 / 8835100 / 8043593

Facsimile          : (971-4) 8835486 / 8855527

Email                : jray.epic@mcdermott.com

 

Premises

Subject operates from a large suite of offices and a fabrication yard that are leased and located in the Jebel Ali Free Zone.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

·       Stewart Smith                                                                                   General Manager

·       Peter Marlow                                                                                    Marketing Manager

·       Nick Higgins                                                                                     Finance Manager

·       Barry Blytha                                                                                     Procurement Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was incorporated in April 1989 and was established in the Jebel Ali

  Free Zone on 18th October 1994.

 

Legal Form                  : Subject is the United Arab Emirates registered branch of McDermott International Inc, a

  Limited Liability Company incorporated in Panama, which in turn is a subsidiary of

  McDermott International Inc of the US.

 

  McDermott Middle East Inc in the United Arab Emirates, operates as a Branch of a Foreign Registered Corporation with its registered office located at the following address:

 

                                                                                                        McDermott International Inc

                                                                                                        757 North Eldridge Parkway

                                                                                                                     Houston, TX 77079

                                                                                                            United States of America

                                                                                                                   Tel: (1-281) 8705011

                                                                                                                 Fax: (1-281) 8705095

                                                                               Email: mdrinvestorrelations@mcdermott.com

 

  A Branch of a Foreign Registered Corporation is not a legal entity in its own right.

  Responsibility for payments lays in the hands of the company where it is originally

  registered.

 

  Under these circumstances, we strongly advise that any international trade credit should

  only be written under the name of the main company where the subject holds its registered office, in this case the United States of America.

 

Commercial Reg. No.  : 300332, Dubai

 

Trade Licence No.       : 747

 

Chamber Member No. : 32237

 

Issued Capital              : UAE Dh 370,000,000

 

Paid up Capital            : UAE Dh 370,000,000

 

 

AFFILIATED COMPANIES

 

Subject is a member of the McDermott Group, headed by McDermott International Inc, a US company incorporated in Panama and engaged in various petroleum activities. The McDermott Group consists of the following concerns:

 

·       McDermott Dubai

 

·       Babcock & Wilcox Investment

 

·       Babcock & Wilcox Company

 

·       B&W Energy Investment Co

 

·       Creole Insurance Co Ltd

 

·       Hudson Engineering & Management Corp

 

·       Hydro Marine Services Inc

 

·       McDermott – ETPM VOF

 

·       McDermott (Holland) BV

 

·       McDermott International Investments Inc

 

·       McDermott Scotland Ltd

 

·       Varsy International NV

 

·       HeereMac

 

 

OPERATIONS

 

Activities: Engaged in the engineering, procurement, construction and installation of specialised offshore fixed

platforms and marine pipelines used for development drilling, production and transportation of oil and gas in the Middle East.

 

In July 2006, subject announced it was awarded a contract by ExxonMobil Middle East Gas Marketing Ltd. to provide engineering, procurement, construction and installation (EPCI) services for two wellhead platforms and pipelines, as part of the Al Khaleej Gas (AKG) Development Phase 2 Offshore Expansion Project.

 

Import Countries: The United States of America, Europe and the Far East.

 

Subject has a workforce of approximately 2,150 employees.

 

 

FINANCIAL DATA

 

Companies registered in Dubai, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

 

·       Citibank

Khalid Bin Waleed Street

Bur Dubai

PO Box: 749

Dubai

Tel: (971-4) 2522100

Fax: (971-4) 2524942

 

·       Emirates Bank International Ltd

Al Nasr Square

PO Box: 2923

Dubai

Tel: (971-4) 2281181

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  August 1998                 January 2003               December 2005

Amount overdue                         0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Pounds Sterling             Euros                            Pounds Sterling

 

 

GENERAL COMMENTS

 

Subject is a leading worldwide marine construction company and is a branch office of the Panamanian registered company “McDermott International Inc”, which in turn is a subsidiary of the well-known McDermott International Inc of the United States. As such it is deemed reliable for respecting its financial trade commitments.

 

McDermott's Middle Eastern facility has fabricated and installed over 630 structures, 330,693ST of steel, and has installed over 2,610 miles of pipeline throughout the Arabian Gulf, Egypt, India, the Caspian, Africa and the North Sea.

 

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.54.73

UK Pound

1

Rs.88.61

Euro

1

Rs.71.34

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.