MIRA INFORM REPORT

 

 

Report Date :

28.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SHAWCOR LTD.

 

 

Registered Office :

25 Bethridge Road, Toronto, Ontario M9W 1M7

 

 

Country :

Canada

 

 

Financials (as on) :

31.13.2012

 

 

Date of Incorporation :

01.01.1994

 

 

Legal Form :

Public Company (TMX = SCL)

 

 

Line of Business :

Provides various technology-based products and services for the pipeline, pipe services, petrochemical, and industrial segments of the oil and gas industry, and other industrial markets worldwide.

 

 

No. of Employees :

6,846

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


 

Company name and address

 

 

Company name:                        SHAWCOR LTD.

 

Headquarters:                            25 Bethridge Road, Toronto, Ontario M9W 1M7 – Canada

 

Telephone:                                +1 416-743-7111

 

Fax:                                          +1 416-743-5927

 

Website:                                               www.shawcor.com

                                                www.canusacps.com

 

Corporate ID#:                           2989271

 

State:                                       Federal

 

Judicial form:                             Public Company (TMX = SCL)

 

Date incorporated:                      01-01-1994

 

Date founded:                            1954

 

Stock:                                       59,620,362 shares issued and outstanding

 

Value:                                       -

 

Name of manager:                      William P. BUCKLEY

 

 

ACTIVITIES & OPERATIONS

 

Business:

 

ShawCor Ltd., an energy services company, provides various technology-based products and services for the pipeline, pipe services, petrochemical, and industrial segments of the oil and gas industry, and other industrial markets worldwide.

It operates in seven divisions: Bredero Shaw, Flexpipe Systems, Shaw Pipeline Services, Canusa-CPS, Guardian, DSG-Canusa, and ShawFlex.

The Bredero Shaw division provides internal and external corrosion protection systems, insulation coating systems, and weight coating systems for onshore and offshore pipelines, as well as pipe coating services for oil and gas producers, pipe mills, pipeline owners, and pipeline construction contractors.

The Flexpipe Systems division manufactures and sells spoolable composite pipe systems that are used for oil and gas gathering, water transportation, CO2 injection, and other corrosive applications.

 

 

The Shaw Pipeline Services division provides ultrasonic and radiographic pipeline girth weld inspection services to pipeline operators and construction contractors.

The Canusa-CPS division manufactures and markets heat shrinkable sleeves, adhesives, sealants, and liquid coatings for use in pipeline joint protection systems and girth weld corrosion protection applications.

The Guardian division provides a range of tubular management services, including mobile and in-plant inspection, as well as refurbishment and rethreading of drill pipes, production tubing, and casing.

The DSG-Canusa division manufactures heat-shrink tubing, sleeves, molded products, kits, and accessories for protection and sealing applications in electrical, electronic, automotive, and communications markets.

The ShawFlex division manufactures control and instrumentation wires and cables for thermocouple, power, marine, and robotics applications.

The company was formerly known as Shaw Industries Ltd. and changed its name to ShawCor Ltd. in May 2001. ShawCor Ltd. was founded in 1954 and is headquartered in Toronto, Canada.

 

Canusa-CPS supplies a wide variety of products and systems used for onshore and offshore pipeline corrosion and thermal protection, specifically at the weld area. Known for its advanced heat-shrinkable products technology for field weld joint protection, Canusa-CPS also manufactures and supplies liquid epoxy-based coatings for joint protection and rehabilitation plus adhesives for pipeline coatings.

 

Staff:     6,846

 

Operations & branches:

 

At above address, we find the corporate office, factory and warehouse, owned.

 

The Company maintains several branches in Canada, including:

 

1050, 202-6th Avenue S.W.


Calgary, Alberta T2P 2R9

 

1824 Crowchild Trail N.W.


Calgary, Alberta T2M 3Y7

 

185 Dorval Avenue


Dorval, Quebec H9S 5J9

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

1st shareholder:

CDS & CO, 28 The Esplanade, Toronto, Ontario M5W 1G4

 

2nd shareholder:

SHAW HOLDING SARL, 123 Av. De la Faiencerie, Luxembourg

 

3rd shareholder:

SHAW INTERNATIONAL SARL, 123 Av. Faiencerie, Luxembourg

 

 

Management

 

William P. BUCKLEY is President, Director and CEO

Mr. William P. Buckley has been the Chief Executive Officer and President of ShawCor Ltd. since July 1, 2005. Mr. Buckley served as the Executive Vice President of Shawcor Ltd. from 1996 to July 1, 2005 and its Chief Operating Officer from 2000 to July 1, 2005. Mr. Buckley served as the President of Bredero Shaw Division of Shawcor Ltd. from August 2004 to April 2005. Mr. Buckley joined ShawCor in 1994 following 23 years with a leading international electrical/electronics components manufacturer, including five years as President of the Canadian and Australian operations. He has presided over an excellent record of growth and expansion of ShawCor's non pipe coating operations. He served as Chairman of Electro-Federation Canada. He has been a Director of ShawCor Ltd. since August 4, 2005. He serves as a member of the supervisory board of Sercel Holding S.A. Mr. Buckley served as a Director of Hammond Power Solutions  Inc. Mr. Buckley has an ICD.D certification. Mr. Buckley holds a degree in Mechanical Engineering from the University of Toronto and an MBA from York University and has completed the AMP program at the Harvard Business School.

 

Gary LOVE is Vice President and CFO.

 

Subsidiaries &

Partnership:       Several worldwide

 

 

FINANCIALS

 

On attachment:

- 10K 2012

- 2nd 10Q 2013

 

Currency in
Millions of Canadian Dollars

As of:

Dec 31
2009
Reclassified
CAD

Dec 31
2010
Restated
CAD

Dec 31
2011
Restated
CAD

Dec 31
2012
CAD

TOTAL REVENUES

1,184.0

1,034.2

1,157.3

1,482.8

NET INCOME

131.5

95.1

56.3

178.4

 

 

Banks:  Royal Bank of Canada

                        ...

           

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

 

National Credit Bureaus give a satisfying credit rating.

 

According to our credit analysts, during the last 6 months, payments of imports were currently made on terms.

 

The Company is developing a strong business.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is low.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 65.67

UK Pound

1

Rs. 102.20

Euro

1

Rs. 87.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.