MIRA INFORM REPORT
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Report Date : |
26.03.2013 |
IDENTIFICATION DETAILS
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Name : |
KUWAIT ENERGY IRAQ LIMITED |
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Registered Office : |
Baradheya, Syed Amin Street, House no.1, Zukak 18, Mahala 304, Basra |
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Country : |
Iraq |
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Financials (as on) : |
30.06.2012 (Group Financials) |
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Date of Incorporation : |
Not Available |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Extraction of crude petroleum |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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) |
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Iraq |
C2 |
C2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
IRAQ - ECONOMIC OVERVIEW
An improving security environment and foreign investment are
helping to spur economic activity, particularly in the energy, construction, and
retail sectors. Broader economic development, long-term fiscal health, and
sustained improvements in the overall standard of living still depend on the
central government passing major policy reforms. Iraq's largely state-run
economy is dominated by the oil sector, which provides more than 90% of
government revenue and 80% of foreign exchange earnings. Iraq in 2012 boosted
oil exports to a 30-year high of 2.6 million barrels per day, a significant
increase from Iraq's average of 2.2 million in 2011. Government revenues
increased as global oil prices remained persisently high for much of 2012.
Iraq's contracts with major oil companies have the potential to further expand
oil exports and revenues, but Iraq will need to make significant upgrades to
its oil processing, pipeline, and export infrastructure to enable these deals
to reach their economic potential. Iraq is making slow progress enacting laws
and developing the institutions needed to implement economic policy, and
political reforms are still needed to assuage investors' concerns regarding the
uncertain business climate, which may have been harmed by the November 2012
standoff between Baghdad and Erbil. The government of Iraq is eager to attract
additional foreign direct investment, but it faces a number of obstacles
including a tenuous political system and concerns about security and societal
stability. Rampant corruption, outdated infrastructure, insufficient essential
services, skilled labor shortages, and antiquated commercial laws stifle
investment and continue to constrain growth of private, nonoil sectors. In
2010, Baghdad signed agreements with both the IMF and World Bank for
conditional aid programs designed to help strengthen Iraq's economic
institutions. Iraq is considering a package of laws to establish a modern legal
framework for the oil sector and a mechanism to equitably divide oil revenues
within the nation, although these reforms are still under contentious and
sporadic negotiation. Political and economic tensions between Baghdad and local
governments have led some provincial councils to use their budgets to
independently promote and facilitate investment at the local level. The Central
Bank has successfully held the exchange rate at about 1,170 Iraqi dinar/US
dollar since January 2009. Inflation has remained under control since 2006 as
security improved. However, Iraqi leaders remain hard pressed to translate
macroeconomic gains into an improved standard of living for the Iraqi populace.
Unemployment remains a problem throughout the country despite a bloated public
sector. Encouraging private enterprise through deregulation would make it
easier for Iraqi citizens and foreign investors to start new businesses.
Rooting out corruption and implementing reforms - such as restructuring banks and
developing the private sector - would be important steps in this direction.
Source : CIA
Company name
KUWAIT ENERGY IRAQ LIMITED
Registration Briefing
Registration
Number: N/A
Registration
Date: N/A
Legal
Form: LIMITED
LIABILITY COMPANY
Latest
Financials: June
30, 2012
Financial Briefing
Nominal
Capital: N/A
Issued
Capital: 493,683,000
US Dollars
Turnover: 113,324,000
US Dollars
Net
Profit: 34,209,000
US Dollars
Net
Worth: 755,202,000
US Dollars
Company Details
Company
Name: KUWAIT
ENERGY IRAQ LIMITED
Headquarter
Address: Baradheya,
Syed
Amin Street, House no.1, Zukak 18, Mahala
304,
Basra,
Iraq
Telephone: +964
40613200
+964
40622002
+964771
7777110
E‑Mail: info.keil@kec.com.kw
Web
Site: www.kec.com.kw
Registration & Legal Details
Current
Legal Form: LIMITED
LIABILITY COMPANY
Capital
Currency: US
Dollars
Issued
Capital: 493,683,000
Paid
Up Capital: All
Shareholders / Owners
Parent
Company: Kuwait
Energy Co,
6th Floor, Symphony Tower 2; Salem Al
Mubarak Street, Salmiya , Kuwait.
P.O
Box 5614, Salmiya 22067,
Salmiya,
Kuwait
%
Shares Held: 100.00%
Year
Started: 2005
Stated
to be Parent
Parent
Operates as: Oil & Gas Exploration
Principals
Name: Eng.
Sara Akbar
Position
within the company: Group
Chief executive
Additional
Information: Member
of the Board
Country
of Birth: Kuwait
Nationality: Kuwaiti
Can
fluently speak: English
& Arabic
Education: Graduate Degree in B.Sc in Chemical
Engineering from Kuwait University
Work Experience and History: Ms. Sara has over 30 years
experience in the oil and gas industry having worked in several challenging
positions in KOC and Kuwait Foreign Petroleum Exploration
Company
(KUFPEC).
Name: Eng.
Mohammed Aboush
Position
within the company: Senior
Vice‑president
Country
of Birth: Iraq
Nationality: Iraqi
Can
fluently speak: English
& Arabic
Education: Graduate Degree in BSc in Mechanical
Engineering from University College of
Swansea,
Work Experience
and History: Over 21
years experience in Petroleum Engineering, Fields development (production
pipelines, Oil and Gas processing) and Business development.
Worked
in Ministry of Oil, Iraq as Director General.
Head of Technical department in the
Directorate of National Manufacturing for Oil
Equipment,
Ministry of Oil, Iraq.
Director
of oil operations in North Oil Company, Iraq.
KEC
authorized Company representative in Iraq.
Member
of the Iraqi – Kuwaiti Committee for Oil Co‑operation.
Name: Mr
Abdel Hamid Ali
Position
within the company: Vice
Financial President
Additional
Information: Business
Support Manager
Country
of Birth: Iraq
Nationality: Iraqi
Can
fluently speak: English
& Arabic
Education: Graduate
University
Company Activities
NACE
Codes: 0610 Extraction of crude petroleum
Subject
is a subsidiary company of Kuwait Energy Co, involved in the exploration of oil
and gas.
Operations
in Iraq:
2‑SIBA
FIELD
The
Siba Field is at the development stage of its life cycle.
Location:
Iraq, Basra Governorate
Area:190
km2
Type:Onshore
Operator:Kuwait
Energy
Kuwait
Energy Interest: 45.0%
Other
Parties:TPAO (30.0%), Missan Oil Company in Saba.(25.0%)
Contract
Date:June 2011
Contract
Type:Gas Development and Production Service Contract
Contract
expiry:June 2031
2‑Mansuriya
Field
The
Mansuriya Field is at the development stage of its life cycle. Location: Iraq,
Diyala Province
Area:110
km2
Type:Onshore
Operator:TPAO
Kuwait
Energy Interest: 22.50%
Other
Parties:TPAO (37.50%), KOGAS (15.0%) Midland Oil Company (25.0%)
Contract
Date: June 2011
Contract
Type:Gas Development and Production Service Contract
Contract
expiry:June 2031
3‑Block
9
Kuwait
Energy‑led consortium’s “block 9” exploration, development and production
service contract.
Block 9 is located in Basra province, covers
an 866 km² area. Potential hydrocarbons prospects will be assessed during the
five‑year exploration phase of the contract. In the case of a discovery,
the Consortium will be automatically eligible for 20‑year development and production phases,
extendable by an additional five years.
Local
Reporters consider the investigated company to be LARGE in their field of
concern.
Operations
HQ Premises Operates
from: Office
Location: Main Road
Branches Baghdad
Office,
Al
Wahda district 902, St 10, Building 5, Apartment 12,
Baghdad,
Iraq
Description
of branch: Office
These premises operate as: Tel:
(+9641)7191861, Fax: (+9641)7187427
Imports
Imports
Finished Goods
Imports
From: Europe,
Far East, USA
Trading & Selling
Additional
Information: Contracts
Type
of Customer: Government
Bodies, Local Authorities, Ministry of Oil
Related Companies
Subsidiaries
Affiliates
Kuwait
Energy Egypt
Cairo,
Egypt
Related
through: common principals and shareholders
Kuwait
Energy Yemen
Hadda
Area,
Sana'a,
Yemen
Related
through: common principals and shareholders
Kuwait
Energy Ukraine
Kiev,
Ukraine
Related
through: common principals and shareholders
Pechora
Energy Company
Ist
Floor, Russian Federation,
Russia
Related
through: common principals and shareholders
Bankers
Information
on Bankers is not available/applicable
Financial Information
Financial
Interview Date: 24/3/2013
Source: www.kec.com.kw
Figures
are: Consolidated
Financial Information
Currency: US
Dollars
Note: Figures
in 000's
Months Sales Figures Sales Gross
Profit/Loss Net Profit/Loss
6 30/06/2012 113,324 34,209
12 31/12/2011 178,921 34,763
Balance Sheet & Profit & Loss
BALANCE
SHEET
Group
Accounts
Figures
are in 000'
As
at: 30‑Jun‑2012
Fixed
Assets
Land
& Buildings 165,488
Plant &
Machinery
Furniture
& Equipment
Motor Vehicles
Misc.
Fixed Assets 492,475
Total
Fixed Assets 657,963
Financial
Assets
Shares in
Related Companies
Loans to
related companies
Investments
Deposits
Misc.
Financial Assets 9,219
Total
Financial Assets 9,219
Intangibles
Goodwill
Organisational
Expenses
Patents
Misc.
Intangible Assets
Total
Intangible Assets 0
Current
Assets
Stock
Stock
& Work in Progress 17,845
Trade
Debtors & receivables 238,352
Provision
for bad debs
Other
receivables
Due from
related companies
Owed by shareholders
Prepaid
expenses
Cash 37,742
Tax
recoverable
Marketable
Securities
Misc.
Current Assets
Total
Current Assets 293,939
Total
Assets 961,121
Owner's
Equity & Liabilities
Issued
and paid up capital 493,683
Share
premium account 182,868
Retained
earnings 110,712
Net
profit/Loss for the year
Revaluation
reserves ‑36,140
Legal
Reserves
Other
reserves 4,079
Net
Worth 755,202
Deffered
Taxation 30,248
Provisions/allowances 3,029
Mortgages/Loans 45,000
Hire
purchase
Due to group
of companies
Minority
interest
Misc.
deferred liabilities 50,652
Total
Long Term Liabilities 128,929
Current
Liabilities
Creditors
Other
creditors 70,682
Accruals
Bank
overdrafts/Loans
Misc. Loans
Directors
accounts
Owing to
shareholders
Owing to
related companies
Proposed
dividend
Long Term‑due
1 year
Hire
Purchase‑under 1 year
Taxation 5,670
Advance
receipts 638
Misc.
Current Liabilities
Total
Current Liabilities 76,990
Owner's
Equity & Liabilities 961,121
PROFIT & LOSS
Group
Accounts
Figures
are:
Fiscal
Year
Figures
are in 000'
01/01/2012
to 30/06/2012
Total
Income/Turnover 113,324
Cost
of sales 54,051
Gross
Profit/(Loss) 59,273
Admin/selling
expenses 12,921
Services
Salaries
Auditors Fee
Stock
Depreciation
Depreciation
Misc.
Operating Expenses
Misc.
Operating Income
Net
Operating Profit/(Loss) 46,352
Interest
Receivable/Finance Income
Group
related income
Misc.
Financial Income 1,473
Total
Financial Income 1,473
Interest
Payable/Finance costs
Misc.
financial expenses
Total
Financial Expenses 0
Profit/(Loss)
before taxes 47,825
Income
Tax 4,616
Other Tax
Profit/(Loss)
after taxes 43,209
Extraordinary
items
Exceptional
items
Misc. Items
Net
Profit/(Loss) 43,209
Previous years
retained earnings
Current
years net income 43,209
Misc.
additions in current year
Current
years net loss
Dividends in
current year
Withdrawals
in current year
Misc.
deductions in current year
Retained
earnings at end of 43,209
financial
period
Average
employees
Directors
fee
Earnings per
share
Earnings per
share‑previous year
Date accounts obtained: 24/3/2013
Accounts obtained from: www.kec.com.kw
FINANCIAL RATIOS / COMPARATIVE DATA
Actual
Company Industrial Averages
Results
(2012) (2012)
Liquidity
Ratios
Current Ratio 3.82 2.37
Acid Test Ratio 3.59 2.13
Current Liabilities/Net 0.10 0.56
Worth
Total Liabilities/Net 0.27 0.94
Worth
Fixed Assets/Net 87.12 95.94
Worth (%)
Profitability
Ratios
Gross Profit Ratio (%) 52.30 76.15
Return on Capital 5.41 4.05
Employed
(ROCE)(%)
Net Profit/Sales (%) 42.20 21.11
Return on Assets (%) 4.98 2.49
Efficiency
Ratios
Sales/Working Capital 0.52 ‑4.64
Assets/Sales(%) 848.12 578.22
Shareholders 6.33 5.32
Return(%)
Leverage
Ratios
Capital Employed 0.15 0.69
Capital Structure (%) 14.58 26.02
Number
of 9
Companies
within the
industry
(NACE B)
Statistics
based on Mining
& quarrying
NACE(B)
INDUSTRY
SECTOR COMPARATIVE DATA
Elements Taken Result for specific RANKING Total Companies Used
company
SALES (2012) 76,853 2 2
NET PROFIT (2012) 32,433 1 2
TOTAL ASSETS (2012) 651,803 2 2
Currency:
EUROS
Figures
in 000s
Charts of Financial Trends and Industry Comparisons
PLEASE
NOTE THAT CHARTS ARE SHOWN IN EUROS FOR TREND AND COMPARISON PURPOSES
The
statistical Industrial Average results are calculated against companies within
the database for the
specific
country.
Payments
Subject's
payments reported to be: NO COMPLAINTS
Interview & Reporter Comments
Name/Title: Mr. Abdel Hamid Ali Vice Financial President
Comment: We have sent a fax/e‑mail/questionnaire however no reply has been received as of yet.
Reporter Comment: Registration/ legal and financial information is not publicly available. Thus all data stated in the report was obtained directly from the Subject Company and/ or other publicly available information. Therefore it should be used as a point of reference as it is not possible to verify such data with official sources.
In the interview conducted with Mr. Abdel Hamid Ali, Vice Financial President, he declined
providing any information and asked us to send him a written request for the information in order
to forward it to the management team and if they are interested they will reply us by mail.
Until today we didn't receive any reply from the company.
All information shown in report was obtained from parent company website and other business directories.
In case any information is provided we shall send it to you at once.
Conclusions
Local Reputation: The company being investigated is considered by local reporters to be a Fair / Normal
Trade Risk.
General Conclusion: A leading concern in this line, well known principals, considered good.
Financial Results Trend: Financial Information indicates that the business activities of the company are
showing an upward turn.
Age of Business: The company is long established in the local market.
Clippings
Date: 10/1/2013
Source: http://www.kec.com.kw/Data/Site16/images/IRAQ‑BLOCK9‑CABINET‑APPROVAL‑R10JAN2013.pdf
STATEMENT
ON IRAQ BLOCK 9 NEWS REPORTS
‑
Iraq approves Kuwait Energy‑led consortium’s “block 9” exploration,
development
and production service contract
‑
Signing scheduled for January 27th
Kuwait,
10 January 2013: Kuwait Energy confirms that a consortium led by Kuwait Energy
has
indeed
received approval from the Iraqi cabinet to sign the contract for the
exploration,
development
and production of “block 9”, which is located in Basra province. The contract
will
be signed
on January 27 as announced by the Iraqi Ministry of Oil.
The
consortium comprises Kuwait Energy, which holds a 70% working interest, and
Dragon Oil
which
hold the remainder 30%.
The
Consortium was awarded the “block 9” in Iraq’s fourth licensing round held in
May 2012.
Turkish
Petroleum Corporation (TPAO), which was part of the Consortium at the time of
the
bidding,
is no longer part of it.
The
consortium’s successful remuneration fee bid was USD6.24 for every barrel of
oil
equivalent
produced.
About
Block 9
“Block
9” covers an 866 km² area. Potential hydrocarbons prospects will be assessed
during the
five‑year
exploration phase of the contract. In the case of a discovery, the Consortium
will be
automatically
eligible for 20‑year development and production phases, extendable by an
additional
five years.
About
Kuwait Energy in Iraq
This
is the third block awarded to Kuwait Energy in Iraq. In Iraq’s third energy
bidding round
held
in October 2010, Kuwait Energy was awarded two 20‑year development
contracts for the
Siba
and Mansuriya gas fields. Kuwait Energy is the operator of the Siba gas field
with a 60%
working
interest, and holds a 30% working interest in Mansuriya gas field which is
operated by
TPAO.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.10 |
|
|
1 |
Rs.82.46 |
|
Euro |
1 |
Rs.70.49 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.