MIRA INFORM REPORT

 

 

Report Date :

09.12.2014 

 

IDENTIFICATION DETAILS

 

Name :

PETROFAC SAMSUNG CB & CFP JOINT VENTURE

 

 

Registered Office :

Petrofac House Al Khan Road Al Khan PO Box  23467 Sharjah

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

2013

 

 

Legal Form :

Joint Venture

 

 

Line of Business :

Subject provide engineering and construction services for the Mina Abdulla (MAB1) refinery in southern Kuwait.

 

 

No. of Employees :

25

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

UAE - ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA


Company name

 

PETROFAC SAMSUNG CB & CFP JOINT VENTURE

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Petrofac House

Street               : Al Khan Road

Area                 : Al Khan

PO Box            : 23467

Town                : Sharjah

Country : United Arab Emirates

 

Telephone         : (971-6) 5740599 / 5740999 / 5173903 / 5185771

Facsimile          : (971-6) 5740599

Email                : salish.dhamale@petrofac.com / sharma.ss@petrofac.com / sunder.kalayanam@petrofac.com

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Sharjah.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Malesh Choudary                                                                              Finance Manager

 

·       Salish Dhamale                                                                                Financial Controller

 

·       Subramanian Sharma                                                                        Project Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 2013

 

Legal Form                  : Joint Venture

 

 

OPERATIONS

 

Activities: The joint venture comprises Petrofac International (UAE) Ltd, South Korea’s Samsung Engineering and  CB&I Nederland BV (CB&I).

 

The subject has received award notification for its share of the Clean Fuels Project (CFP) in Kuwait.

The project awarded by Kuwait National Petroleum Company, will see the consortium provide engineering

and construction services for the Mina Abdulla (MAB1) refinery in southern Kuwait at total cost of US$ 3.7

billion.


     Petrofac’s share of the project which is expected to be completed in approximately four years, is worth

US$ 1.7 billion.

     The lump sum engineering, procurement and construction scope of work includes the provision of 19 new

refining units at Mina Abdulla, revamping of five existing units at the al-Shuaiba refinery site and the

accompanying inter-refinery transfer lines.

The news comes a day after the awarding of contracts by the Kuwaiti government to three local firms to

work alongside the three lead international engineering firms, Petrofac, Fluor and JGC of Japan who are

working on the US$12 billion CFP.

     The Clean Fuels Project is one of KNPC's major investment projects to upgrade the Mina Abdulla and

Mina Al Ahmadi refineries, in order to reach a daily production target of around 800,000 bpd.

 

Subject has a workforce of 25 employees.

 

 

FINANCIAL DATA

 

Companies registered in Sharjah, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Sharjah Islamic Bank

Al Boorj Avenue

     PO Box: 4

     Sharjah

     Tel: (971-6) 5547747

 


 

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.61.93

UK Pound

1

Rs.96.37

Euro

1

Rs.76.10

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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