MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

OMANI QATARI TELECOMUNICATION COMPANY SAOG (NAWRAS)

 

 

Registered Office :

Nawras Building,  Azaiba Area, PO Box 874, Seeb 111, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.12.2004

 

 

Com. Reg. No.:

1/77152/3

 

 

Legal Form :

Omani Closed Joint Stock Company

 

 

Line of Business :

Providers of mobile and fixed telecommunications networks

 

 

No. of Employees :

1,000

 

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 :

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

(31.03.2012)

Current Rating

(30.06.2012)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

oman - ECONOMIC OVERVIEW

 

Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors.

 

Source : CIA

 

 

 

SUMMARY

 

Company Name                                    : OMANI QATARI TELECOMUNICATION COMPANY SAOG (NAWRAS)

Country of Origin                                   : Oman

Legal Form                                           : Omani Closed Joint Stock Company

Registration Date                                  : 14th December 2004

Commercial Registration Number           : 1/77152/3

Authorised Capital                                 : RO 70,000,000

Issued Capital                                       : RO 65,094,423

Paid up Capital                                     : RO 65,094,423

Total Workforce                                     : 1,000

Activities                                               : Providers of mobile and fixed telecommunications networks

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

COMPANY NAME

 

OMANI QATARI TELECOMUNICATION COMPANY SAOG (NAWRAS)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Nawras Building

Area                 : Azaiba Area

PO Box                        : 874, Seeb 111

Town                : Muscat

Country : Sultanate of Oman

 

Telephone         : (968) 24584000 / 22002200

Facsimile          : (968) 24584099 / 22002299

Mobile              : (968) 95011500 / 95011555

Email                : investor.relations@nawras.om

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Muscat.

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Sayyed Amjad Mohamed Al Busaidi                                                       Chairman

 

Sheikh Saud Nasser Al Thani                                                                  Vice Chairman

 

Saleh Nasser Al Riyami                                                                          Director

 

Khalil Ibrahim Al Emadi                                                                          Director

 

Dr Shaikha Sultan Al Jabir                                                                      Director

 

Ghassan Khamis Al Hashar                                                                    Director

 

Muhanna Nasser Al Nuaimi                                                                     Director

 

Said Faraj Said Al Rabeea                                                                     Director

 

Mohammed Jassim Al Kuwari                                                                Director

 

Ross Cormack                                                                                      Chief Executive Officer

 

Khalid bin Ibrahim A Al Mahmoud                                                           Chief Operating Officer

 

Peter Rubeck                                                                                        Chief Technical Officer

 

Jorgen Latte                                                                                          Chief Finance Officer

 

Tore Solberg                                                                                         Chief Commercial Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th December 2004

 

Legal Form                  : Omani Closed Joint Stock Company

 

Commercial Reg. No.   : 1/77152/3

 

Authorised Capital       : RO 70,000,000

 

Issued Capital              : RO 65,094,423

 

Paid up Capital            : RO 65,094,423

 

Name of Shareholder (s)                                                      Percentage

 

TDC – Qtel Mena Investcom BSC                                               55.0%

 

Ministry of Defence Pension Fund                                             1.5%

 

Royal Office Pension Fund                                                        1.5%

 

Diwan of the Royal Court Pension Fund                           1.0%

 

Internal Security Service Pension Fund                                       0.7%

 

Sultan’s Special Service Pension Fund                                       0.3%

 

Free Float                                                                                 40.0%

 

 

OPERATIONS

 

Activities: Engaged as providers of mobile and fixed telecommunications networks. The company was awarded Oman's second GSM licence in October 2004. In March 2005, it launched Nawras as the second mobile operator in Oman.

Operating Trend: Steady

 

Subject has a workforce of approximately 1,000 employees.

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO 000’s)

 

Balance Sheet                                                                          31/12/11                        31/12/10

 

ASSETS

Non-current assets

Property, plant and equipment                                                   182,138                         165,621

License fee                                                                               42,425                          46,119

224,563                         211,740

Current assets

Inventories                                                                                670                               382

Receivables and prepayments                                                   29,702                          29,648

Bank balances and cash                                                            44,462                          49,343

74,834                          79,373

TOTAL ASSETS                                                                        299,397                         291,113

EQUITY AND LIABILITIES

Equity

Share capital                                                                             65,094                          65,094

Statutory reserve                                                                       16,680                          11,929

Cumulative changes in fair values                                               (297)                             (1,732)

Retained earnings                                                                      86,042                          68,017

Total equity                                                                               167,519                         143,308

Non-current liabilities

Interest bearing borrowings                                                        21,940                          55,050

Site restoration provision                                                           3,643                            3,232

Negative fair value of derivatives                                               -                                   324

Employees’ end of service benefits                                           783                               2,246

Deferred tax liability                                                                  616                               153

                                                                                                26,982                          61,005

Current liabilities

Payables and accruals                                                               54,877                          56,366

Interest bearing borrowings                                                        33,215                          15,885

Employee benefits                                                                    1,355                            -

Negative fair value of derivatives                                               337                               1,644

Deferred revenue                                                                       8,729                            6,282

Income tax payable                                                                   6,383                            6,623

104,896             86,800

Total liabilities                                                                           131,878                         147,805

TOTAL EQUITY AND LIABILITIES                                               299,397                         291,113

 

Statement of Income                                                               

 

Revenue                                                                                   196,865                         188,856

Other (expense) / income                                                           424                               276

197,289             189,132

Operating expenses                                                                  (29,578)                        (27,828)

General and administrative expenses                                          (69,739)                        (64,458)

Depreciation and amortisation                                                    (28,040)                        (24,247)

Royalty                                                                                     (12,665)                        (11,719)

Financing costs                                                                         (3,278)                          (3,977)

PROFIT BEFORE TAX                                                               53,989                          56,903

Income tax expense                                                                  (6,477)                          (6,923)

PROFIT FOR THE PERIOD                                                        47,512                          49,980

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

Bank Muscat SAOG

PO Box: 134

Ruwi 112

Muscat

Tel: (968) 24768888

Fax: (968) 24798220

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.