MIRA INFORM REPORT

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

OMAN OIL REFINERY & PETROLEUM INDUSTRIES CO SAOC (ORPIC)

 

 

Registered Office :

ORPIC Building Mina Al Fahal Industrial Area PO Box 3568 Muscat 112 Sultanate of Oman

 

 

Country :

Oman

 

 

Date of Incorporation :

14.06.2011

 

 

Com. Reg. No.:

1/11300/3

 

 

Legal Form :

Omani Joint Stock Company

 

 

Line of Business :

Subject is engaged as operators of a petrochemical refinery.

 

 

No. of Employees

550

 

 

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)

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. However, increases in social welfare benefits, particularly since the Arab Spring, will challenge the government's ability to effectively balance its budget if oil revenues decline. 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. In 2012, continued surpluses resulting from sustained high oil prices and increased enhanced oil recovery allowed the government to maintain growth in social subsidies and public sector job creation. However, the Sultan made widely reported statements indicating this would not be sustainable, and called for expanded efforts to support SME development and entrepreneurship. Government agencies and large oligarchic group companies heeded his call, announcing new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8 to 7%, lowered mortgage rates, capped the percentage of consumer loans at 50% of borrower's salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively.

 

Source : CIA

SUMMARY

 

Company Name                                    : OMAN OIL REFINERY & PETROLEUM INDUSTRIES CO SAOC (ORPIC)

Country of Origin                                   : Oman

Legal Form                                           : Omani Joint Stock Company

Registration Date                                  : 14th June 2011

Commercial Registration Number           : 1/11300/3

Membership Number                             : 2965

Issued Capital                                       : RO 2,000,000

Paid up Capital                                     : RO 2,000,000

Total Workforce                         : 550

Activities                                               : Operators of a petrochemical refinery.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Tahir Al Barwani, Finance Manager

 

COMPANY NAME

 

OMAN OIL REFINERY & PETROLEUM INDUSTRIES CO SAOC (ORPIC)

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : ORPIC Building

Location           : Mina Al Fahal Industrial Area

PO Box            : 3568

Town                : Muscat 112

Country : Sultanate of Oman

Telephone         : (968) 24663719 / 24560316 / 24561200 / 24663773

Facsimile          : (968) 24560316 / 24564992

Mobile              : (968) 99865940

Email                : info@orpic.com / faris.sahra@orpic.com / tahir.albarwani@orpic.com / tahir.albarwani@orpic.com

 

Premises

 

Subject operates from a large suite of offices and a factory that are rented and located in the Industrial Area of Muscat.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 277                                                                                    Factory premises

Falay Al Qabail 322

Sohar

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Bin Hamad Al Rumhy                                                        Chairman

 

·       Sultan Salem Saeed Al Habsi                                                            Vice Chairman

 

·       Musaav Abdullah Al Mahruqi                                                             Chief Executive Officer

 

·       Mulhem Bashir Al Jarraf                                                                    Deputy Chief Executive Officer

 

·       Ali Abdullah Al Reyamo                                                                    Director

 

·       Dr Saleh Bin Ali Al Anbouri                                                                Director

 

·       Nazar Al Lawati                                                                                 Chief Financial Officer

 

·       Tahir Al Barwani                                                                                Finance Manager

 

·       Sultan Salem Saeed Al Habsi                                                            General Manager

 

·       Faris Sahra                                                                                       Administration Manager

 

·       Mohamed Hamad Saif Al Rahmani                                                    Operations Manager

 

·       Mohamed Al Kendi                                                                           Senior Accountant

 

·       Abdul Basit Al Henai                                                                         Procurement Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th June 2011

 

History                         : Subject was formed from the merger of the following companies:

 

-       Oman Refineries and Petrochemicals Company LLC (ORPC)

-       Oman Polypropylene Co (OPP)

-       Aromatic Oman LLC (AOL)

 

Legal Form                  : Omani Joint Stock Company

 

Commercial Reg. No.   : 1/11300/3

 

Membership No.           : 2965

 

Issued Capital              : RO 2,000,000

 

Paid up Capital            : RO 2,000,000

 

Name of Shareholder (s)                                           Percentage

 

·       Ministry of Finance                                                               75%

 

·       Oman Oil Company SAOC                                                    25%

 

 

OPERATIONS

 

Activities: Engaged as operators of a petrochemical refinery.

 

Import Countries : Europe and GCC countries.

 

Subject has a workforce of approximately 550 employees.

 

 

FINANCIAL DATA

 

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

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Muttrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               June 2014

Credit amount                                       18,000

Amount overdue                                    0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Euros

 

 

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.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

 

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.