MIRA INFORM REPORT

 

 

Report Date :

14.08.2014

 

IDENTIFICATION DETAILS

 

Name :

EGYPT GAS CO SAE

 

 

Registered Office :

Egypt Gas Building 2 Geziret Mohamed Street : Corniche El Nil, El Warrak, Embaba, Giza Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1983

 

 

Com. Reg. No.:

160611

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

·         Engaged in the provision of natural gas as well as all activities related to natural gas resources.

·         Subject also imports natural gas equipment and pipes

 

 

No. of Employees

6,500

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Egypt

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

EGYPT ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency

 

Source : CIA


SUMMARY

 

Company Name                                     : EGYPT GAS CO SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1983

Commercial Registration Number            : 160611

Tax Card Number                                   : 760-400-100

Authorised Capital                                  : £E 500,000,000

Issued Capital                                        : £E   60,000,000

Paid up Capital                                      : £E   60,000,000

Total Workforce                                     : 6,500

Activities                                               : Providers of natural gas

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 

COMPANY NAME

 

EGYPT GAS CO SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Egypt Gas Building

Street               : 2 Geziret Mohamed Street

Area                 : Corniche El Nil, El Warrak, Embaba, Giza

Town                 : Cairo

Country             : Egypt

 

Telephone         : (20-2) 35403570 / 35407674 / 35406531 / 35405078

Facsimile          : (20-2) 35406081 / 35408882 / 35405305

Email                : cairo@egyptgas.com.eg

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       30 El Mofateshin Street                                                                     Office premises

Almaza

Heliopolis

Cairo

Tel: (20-2) 22902339

Fax: (20-2) 27033987

 

·       1-4 Complex                                                                                     Office premises

24 El Laselki Street

New Maadi

Cairo

Tel: (20-2) 25195273

Fax: (20-2) 27033987

 

·       Villa 6                                                                                              Office premises

El Khattib Street

Dokki

Cairo

Tel: (20-2) 33375726

Fax: (20-2) 33375724

 

·       4 Dr El Nabawy El Mohandes Street                                                   Office premises

El Alam City

Agouza

Mohandessin

Cairo

Tel: (20-2) 33465994

Fax: (20-2) 33465114

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Moustafa Mohamed Ismail Abd El Wahab                                           Chairman

 

·       Mohamed Fathi Mahmoud                                                                  Director

 

·       Abd El Hady Abo Zad                                                                        Director

 

·       Atiah Salah                                                                                       Director

 

·       Mohamed Darwish                                                                             Director

 

·       Hassan Raaf                                                                                     Director

 

·       Samiha Ibrahim Youssef                                                                    Director

 

·       Fawzy Mohamed Ashour                                                                   Director

 

·       Ibrahim Tawfik                                                                                   Investor Relations Manager

 

·       Adel Moursi                                                                                      Marketing Manager

 

·       Mohamed Abd El Aziz                                                                       Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1983

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 160611

 

Tax Card Number        : 760-400-100

 

Authorised Capital       : £E 500,000,000

 

Issued Capital              : £E   60,000,000

 

Paid up Capital            : £E   60,000,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Egyptian General Petroleum Corporation                                 80%

Cairo

 

·       Local businessmen and private investors                                 20%

 

 

OPERATIONS

 

Activities: Engaged in the provision of natural gas as well as all activities related to natural gas resources. Subject also imports natural gas equipment and pipes.

 

Import Countries: China and the United Kingdom

 

Operating Trend: Steady

 

Subject has a workforce of approximately 6,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E 000,000’s)

 

Income Statement                                                                                                                          31/12/13

 

Revenue

950.1

Other Revenue, Total

--

Total Revenue

950.1

Cost of Revenue, Total

918.7

Gross Profit

31.4

Selling/General/Admin. Expenses, Total

65.2

Research & Development

--

Depreciation/Amortization

0.5

Interest Expense, Net - Operating

--

Interest/Investment Income - Operating

--

Interest Expense(Income) - Net Operating

--

Unusual Expense (Income)

0.0

Other Operating Expenses, Total

0.0

Total Operating Expense

984.4

Operating Income

(34.3)

Interest Expense, Net Non-Operating

--

Interest/Invest Income - Non-Operating

130.4

Interest Income(Exp), Net Non-Operating

--

Gain (Loss) on Sale of Assets

0.1

Other, Net

3.5

Net Income Before Taxes

99.6

Provision for Income Taxes

3.0

Net Income After Taxes

96.6

Minority Interest

--

Equity In Affiliates

--

U.S. GAAP Adjustment

--

Net Income Before Extra. Items

96.6

Accounting Change

--

Discontinued Operations

--

Extraordinary Item

--

Tax on Extraordinary Items

--

Net Income

96.6

Preferred Dividends

--

General Partners' Distributions

--

Miscellaneous Earnings Adjustment

--

Pro Forma Adjustment

--

Interest Adjustment - Primary EPS

--

Income Available to Com Excl Extra Ord

96.6

Income Available to Com Incl Extra Ord

96.6

Basic Weighted Average Shares

12.00

Basic EPS Excluding Extraordinary Items

8.048

Basic EPS Including Extraordinary Items

8.048

Dilution Adjustment

--

Diluted Weighted Average Shares

12.00

Diluted EPS Excluding ExtraOrd Items

8.048

Diluted EPS Including ExtraOrd Items

8.048

DPS - Common Stock Primary Issue

5.500

Gross Dividends - Common Stock

66.0

Total Special Items

(0.1)

Normalized Income Before Taxes

99.5

Effect of Special Items on Income Taxes

(0.0)

Inc Tax Ex Impact of Sp Items

3.0

Normalized Income After Taxes

96.5

Normalized Inc. Avail to Com.

96.5

Basic Normalized EPS

8.042

Diluted Normalized EPS

8.042

 

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

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.61.25

UK Pound

1

Rs.103.02

Euro

1

Rs.81.90

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.