|
Report Date : |
11.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZIMBABWE POWER COMPANY |
|
|
|
|
Registered Office : |
44 Samora Machel Avenue, 12th Floor, Megawatt House, Harare |
|
|
|
|
Country : |
Zimbabwe |
|
|
|
|
Financials (as on) : |
31.12.2011 (Unconsolidated) |
|
|
|
|
Date of Incorporation : |
01.01.1996 |
|
|
|
|
Legal Form : |
Company limited by shares |
|
|
|
|
Line of Business : |
· Subject is authorized to construct, own, operate and maintain power generation stations in Zimbabwe. · Subject operates four coal fired power stations at Hwange, Harare, Munyati and Bulawayo and a hydro power station at Kariba |
|
|
|
|
No. of Employees : |
1,569 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Zimbabwe |
D |
D |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Zimbabwe ECONOMIC OVERVIEW
Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of more than 9% per year in 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe''s 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy. The government''s subsequent land reform program, characterized by chaos and violence, badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation to about 10%, but exposed structural weaknesses that continue to inhibit broad-based growth.
Source : CIA
Zimbabwe Power Company
DBA:
ZPC
ADDRESSES:
Main
Address: 44
Samora Machel Avenue, 12th Floor, Megawatt House,
Zip
code/City: Harare,
Zimbabwe
Telephone: +263 4 250407
+263
4 250408
Fax: +263
4 794828
+263
4 702840
Postal
address: P.O Box
MP 274
Zip
code/City: Mount
Pleasant Harare, Zimbabwe
WIN Worldbox No.: ZW0000020899
Profile
Established: 1999
Banks: Stanbic
Bank Limited
Standard
Chartered Bank Zimbabwe Limited
BancABC
Employees: 1,569
CNPJ: -
Board of Directors:
General
Director Eng.
Noah F. Gwariro
General
Director Eng. Wonder
Magura
Director Eng. Tanda
Chisi
Director Hubert Chiwara
Official Administration:
Chairman Eng Richard
Maasdorp
Vice-Chairman Desmond Matete
Independent
Non-Executive Director Slava G. Chella
Independent
Non-Executive Director Victor R. Gapare
Independent
Non-Executive Director Eng. Takawira
Zengeya
External Positions:
Auditor BDO
Zimbabwe (Chartered Accountants), Professional address: 3 Baines Avenue ,
Harare, Zimbabwe
Chief
Executive Officer Eng. Josh
Chifamba
Chief
Financial Officer Eliab
T. Chikwenhere
Public
information:
-
Legal form: Company
limited by shares
Incorporation
date: 01.01.1996
Balance
sheet filing date: -
Tax
Contributor Number (CNPJ): -
Legal
status: active
Responsible
Register: State Register
of Zimbabwe
Entry Deleted Name
active Zimbabwe
Power Company
Entry Deleted Capital
active Share
Capital USD 300, paidup USD 0
Entry Deleted Capital Structure
active 30,000
Registered shares of USD 0.01
Import
and Export:
Import
Owners/-s:
Class: 100%
Type: direct
Name: ZESA
Holdings (Private) Limited
City/Country: Zimbabwe/ZW
Class: 100%
Type: direct
Name: ZESA
Holdings (Pvt) Ltd.
City/Country: Harare,
Zimbabwe/ZW
Interest: 100,00%
voting right, 100,00% capital interest
Financial
Data Zimbabwan Power Company
Consolidation: unconsolidated
Industry: Trade/Industry
Fiscal year end: 31.12.2011 31.12.2010
Number of months: 12 12
Currency: USD USD
Balance Sheet
Land and buildings 212,575,320.0 215,895,752.0
Other tangible fixed assets 1,393,125,195.0 704,869,602.0
Tangible fixed assets 1,605,700,515.0 920,765,354.0
Financial fixed assets 31,157.0 48,137.0
Fixed assets 1,605,731,672.0 920,813,491.0
Stocks 31,287,047.0 21,460,790.0
Trade accounts receivable 6,166,373.0 5,273,894.0
Liquid assets 5,775,118.0 3,002,312.0
other trade accounts 124,506,008.0 120,836,663.0
Accruals 30,126,107.0 36,382,974.0
Other current assets 160,407,233.0 160,221,949.0
Current assets 197,860,653.0 186,956,633.0
Total assets 1,803,592,325.0 1,107,770,124.0
Other shareholders funds 1,057,057,120.0 547,767,940.0
Total shareholders equity 1,057,057,120.0 547,767,940.0
long term debt (financial debts) 34,505,093.0 32,914,967.0
Other non
current liabilities 333,125,387.0 166,311,859.0
Non current
liabilities 367,630,480.0 199,226,826.0
short term debt (financial debts) 302,069,272.0 272,709,778.0
Trade accounts payable 26,368,629.0 23,635,213.0
Provisions 4,186,751.0 4,132,739.0
other accounts payable 46,280,073.0 60,297,628.0
other current liabilities 50,466,824.0 64,430,367.0
Current liabilities 378,904,725.0 360,775,358.0
Shareh. equity, min. interests +
liabilities 1,803,592,325.0 1,107,770,124.0
Profit and loss account
Sales 363,152,382.0 265,149,746.0
Net sales 363,152,382.0 265,149,746.0
Other operating revenue 2,317,204.0 995,186.0
Operating revenue 365,469,586.0 266,144,932.0
Cost of goods sold 148,412,322.0 93,105,681.0
Gross profit 217,057,264.0 173,039,251.0
Other operating expenses 199,528,822.0 118,038,025.0
Operating result 17,528,442.0 55,001,226.0
other financial revenues 502,774,680.0 2,637,294.0
Financial income 502,774,680.0 2,637,294.0
other financial expenses 17,929,161.0 15,210,843.0
Financial expenses 17,929,161.0 15,210,843.0
Financial result 484,845,519.0 -12,573,549.0
Result before extraordinary items 502,373,961.0 42,427,677.0
Result before taxes 502,373,961.0 42,427,677.0
Taxes -6,915,219.0 44,143,253.0
Result before minority interests 509,289,180.0 -1,715,576.0
Result for the financial year 509,289,180.0 -1,715,576.0
Cash flow
Depreciation 42,728,325.0 42,261,604.0
Cash flow 552,017,505.0 40,546,028.0
Cash flow from operating activities 39,398,483.0 10,214,326.0
Investments in tangible fixed
assets 51,886,209.0 16,561,791.0
Cash flow from investing activities -51,855,741.0 -16,560,311.0
Cash flow from financing activities 15,230,357.0 6,604,416.0
Change in liquidity 2,773,099.0 258,431.0
Liquidity at beginning of the year 1,202,019.0 943,588.0
Liquidity at end ot the year 3,975,118.0 1,202,019.0
Notes
Material costs 148,412,322.0 93,105,681.0
Cost of employees 47,416,052.0 29,269,964.0
Added value 592,518,338.0 113,959,245.0
Working Capital 11,084,791.0 3,099,471.0
Gross cost land and buildings 212,575,320.0 235,284,100.0
Gross cost other tangible fixed
assets 1,395,476,657.0 768,669,333.0
Gross cost total 1,608,051,977.0 1,003,953,433.0
Employees at year end 1,569
Financial information:
More recent financials are not
available.
Additional bankers:
CBZ
ZB Bank Limited
Exchange rate:
US$
1,00 =
ZWD 373 -
Official rate on 10.10.2013
Main Activities:
The
company is authorized to construct, own, operate and maintain power generation
stations in Zimbabwe.
The
company operates four coal fired power stations at Hwange, Harare, Munyati and
Bulawayo and a hydro power station at Kariba. Each power station holds a
Generation licence issued by the Zimbabwe Energy Regulatory Authority (ZERA).
Power plants:
Installed Capacity
(MW) Available Capacity (MW)
Hwange
Thermal Power Station 920 450
Kariba
Hydro Power Station 750 750
Munyati
Thermal Power Station 120 60
Bulawayo
Thermal Power Station 90 60
Harare
Thermal Power Station 90 30
Subject
matter incorporates all generation plants of Hwange, Kariba and the small
thermal power stations namely Harare Power Station, Bulawayo and Munyati Power
Stations.
The
Small Thermal Power Stations are operating as embedded generators (i.e. power
stations that are directly connected to the distribution network) but will be
dispatched only to meet supply shortfalls as follows:
For
strategic system security.
To
cover constraints on the national grid.
To
provide an alternative to imports to reduce demand on foreign currency.
To
sell electricity to the domestic market through PPA's with the Zimbabwe
Electricity Transmission Company (ZETCO).
Operations & branches:
At
the 12th Floor, Megawatt House, 44 Samora Machel Avenue, Harare we find the
headquarters and registered seat.
Staff:
1,569
Company's Background:
Zimbabwe
Power Company (ZPC) was incorporated in 1996 as the Zimbabwe Electricity Supply
Authority (ZESA), an investment vehicle in the power sector and it became
operational in 1999. The Electricity Act (Chapter 13:19) which was passed in
2002.
The registration and VAT number could not be traced.
Credit to the recommended limit should be acceptable but should be monitored on a regular basis. However, it is accepted practice to seek (bank) guarantees when dealing with Zimbabwan importers.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
UK Pound |
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.