MIRA INFORM REPORT

 

 

Report Date :

03.02.2014

 

IDENTIFICATION DETAILS

 

Name :

LLK-NAFTAN SOOO

 

 

Registered Office :

Novopolotsk-1, Novopolotsk 211440, Vitebskaya Oblast

 

 

Country :

Belarus

 

 

Date of Incorporation :

28.04.2006

 

 

Legal Form :

Joint Venture Limited Liability Company

 

 

Line of Business :

Subject is involved in the following activities :

Producers of additives for lubricating oils.

 

 

No. of Employees :

300

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Belarus

C1

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

BELARUS - ECONOMIC OVERVIEW

 

As part of the former Soviet Union, Belarus had a relatively well-developed industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is inefficient and dependent on government subsidies. After an initial burst of capitalist reform from 1991-94, including privatization of state enterprises, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and foreign investment has been hindered by a climate hostile to business. A few banks, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector. Economic output, which had declined for several years following the collapse of the Soviet Union, revived in the mid-2000s thanks to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below the world market. Belarus exported refined oil products at market prices produced from Russian crude oil purchased at a steep discount. In late 2006, Russia began a process of rolling back its subsidies on oil and gas to Belarus. Tensions over Russian energy reached a peak in 2010, when Russia stopped the export of all subsidized oil to Belarus save for domestic needs. In December 2010, Russia and Belarus reached a deal to restart the export of discounted oil to Belarus. Little new foreign investment has occurred in recent years. In 2011, a financial crisis began, triggered by government directed salary hikes unsupported by commensurate productivity increases. The crisis was compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble, and eventually led to a near three-fold devaluation of the Belarusian ruble in 2011. In November 2011, Belarus agreed to sell to Russia its remaining shares in Beltransgaz, the Belarusian natural gas pipeline operator, in exchange for reduced prices for Russian natural gas. Receiving more than half of a $3 billion loan from the Russian-dominated Eurasian Economic Community Bail-out Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and the $2.5 billion sale of Beltranzgas to Russian state-owned Gazprom helped stabilize the situation in 2012; nevertheless, the Belarusian currency lost more than 60% of its value, as the rate of inflation reached 53% in 2011 and 59% in 2012.

 

Source : CIA

 

Company name

 

LLK-NAFTAN SOOO (Correct)

JVLL LLK - NAFTAN (Requested)

 

 

ADDRESS

 

Area     :           Novopolotsk-1

 

Town     :           Novopolotsk 211440

Province :          Vitebskaya Oblast

Country  :          Belarus

 

Telephone:        (375 214) 594 513 / 594 525 (Aleksey Markovich Zvonkin)

Fax      :            (375 214) 598 162

E-Mail   :           office@llk-naftan.by

Website  :         www.llk-naftan.by

 

English Translation :       LLK-Naftan JV Ltd / LLK-Naftan JLLC

 

Also known as :             LLK-Naftan Sovmestnoe Obschestvo s Ogranichennoy Otvetstvennostyu

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Petr Vasilyevich Katulski                    General Director

 

2. Mikhail Olegovich Babushkin               Deputy General Director /

                                                                        Production and Technical Issues

 

3. Anatoliy Gennadyevich Neznayko        Deputy General Director /

                                                                        Economics and Finance

 

4. Dmitriy Svyatoslavovich Nikolin            Chief Engineer

 

5. Aleksey Markovich Zvonkin                 Chief Accountant

 

6. Ms. Irina                                            Accountant

 

Total Employees : 300

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is a joint venture between Naftan OAO (Belarus) and LLK International B.V. (The Netherlands, subsidiary of Lukoil OAO).

 

We consider it is acceptable to deal with subject for LARGE amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Belarusian importers.

 

Trade risk assessment: Normal

 

 

SIGNIFICANT CHANGES

 

December 2013: As per the subject interviewed, Aleksey Markovich Zvonkin (Chief Accountant), the subject’s General Director Mr. Petr Vasilyevich Katulski will be replaced by Mikhail Olegovich Babushkin by the end of 2013.

 

 

PRINCIPAL BANKERS

 

NAME     :         PRIORBANK JSC

 

Branch   :          E. Polotskoy Street 1A

Town     :           Plotsk

 

Telephone:        (375 214) 410 181

Fax      :            (375 214) 490 933

 

 

FINANCIAL INFORMATION

 

Private companies in Belarus are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

 

Sales Turnover                : US DLRS 50,000,000 - 2012 - exact

                                      : US DLRS 48,300,000 - 2013 – exact *

 

Net Profit                          : US DLRS  4,000,000 - 2012 - exact

 

* 11 months results (January - November).

 

Financial year ends 31 December.

 

The following financial information applies to Naftan OAO:

 

Sales Turnover   :           B ROUBLE  7,130,465,000,000 – 2009 – exact

                 :                  B ROUBLE  8,491,768,000,000 – 2010 – exact

                 :                  B ROUBLE 21,449,322,000,000 – 2011 – exact

 

Cost of sales    :            B ROUBLE  6,834,723,000,000 – 2009 – exact

                 :                  B ROUBLE  8,230,744,000,000 – 2010 – exact

 

Tax Paid         :                         B ROUBLE     91,846,000,000 – 2009 – exact

                 :                  B ROUBLE     85,704,000,000 – 2010 – exact

                 :                  B ROUBLE    102,224,000,000 – 2011 – exact

 

Net Profit       :               B ROUBLE    153,006,000,000 – 2009 – exact

                 :                  B ROUBLE    164,490,000,000 – 2010 – exact

                 :                  B ROUBLE    221,916,000,000 – 2011 – exact

 

Retained Earnings: B ROUBLE     61,160,000,000 – 2009 – exact

                 : B ROUBLE     78,786,000,000 – 2010 – exact  

 

* First quarter results, period from 1 January 2011 till 31 March 2011.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :    28 April 2006

 

Tax No. :           UNP 390401182

 

Capital :            not given

 

Sovmestnoe Obshchestvo s Ogranichennoy Otvetstvennostyu (joint venture limited liability company) with the following shareholders :

 

   Shareholders                                    Percentage

 

1. Naftan OAO                                             50%

   Industrial Area

   Novopolotsk-1 211440

   Vitebskaya Oblast

   Telephone: (375 214) 598 257 / 598 207 / 598 382

   Fax      : (375 214) 598 000 / 529 378

   E-mail   : naftan@naftan.vitebsk.by

   Website  : www.naftan.by

   Employees: 12,386

   Est.: 1958

   Tax No.: UNN 300042199

   Statistics Code : OKPO 05778477

   Capital : B ROUBLE 558,783,436,200

   Shareholders:

           - Government of Belarus               - 99.10%

           - 10,622 current and former employees -  0.90%

  (Company is responsible to Belarusian State Concern

   for Oil and Chemistry (Belneftekhim Concern).

 

2. LLK International B.V.                                 50%

   The Netherlands

   (Subsidiary of LUKoil OAO)

 

Affiliated companies of the subject company :

 

Associates

 

1. BNK ZAO (Belarusian Oil Company CJSC)                

   Nezavisimosti Avenue 169, Floor 6-7

   Minsk 220030

   Belarus

   Telephone: (375 17) 218 1212

   Fax      : (375 17) 218 1209

 

2. Oil Logistic OOO

3. Belneftestrah ZASO                                   

   Pobediteley Avenue 23/1, Office No. 812 

   Minsk 220004

   Telephone: (375 17) 203 2455

   Fax      : (375 17) 226 7888

   E-Mail   : insurance@bns.by

 

4. Verhnedvinskiy Rayagroservis OAO      

   Verhnedvinskiy District, Lesnaya Street 1

   Belarus

 

5. Mogilevkhimvolokno OAO

   212035 Mogilev-35

   Republic of Belarus

   Tax No.: UNP (UNN): 700117487

   Statistic Code : OKPO: 002040797000

   Telephone: (375 222) 499 985 

   Fax      : (375 222) 322 153

   E-mail: mogilev@khimvolokno.by   

 

6. Belarusian Oil Company JSC

   Nezavisimosti Pr. 169,6-7 fl.

   Minsk 220114

   Republic of Belarus

   Telephone: (375 17) 218 1212

   Fax      : (375 17) 218 1209

   E-mail:  info@bnk.by

   General Director : Vladimir Zubkov

 

7. Zavod Gornogo Voska OAO

   Puhovichi district, Svisloch, Str. Partizanskaja, 2

   Minsk region 222823 

   Republic of Belarus

   Telephone: (375 17) 136 4563

   Fax      : (375 17) 136 4169

   E-mail: zgw@zgw.by

 

8. Belneftehim OOO

   O. Gonchara 35, Office No. 223)

   Kiev 01034

   Telephone: (380 44) 377 7337

   Fax      : (380 44) 377 7337

 

9. BNH-Oil Polska OOO

   al. Wilanowska 313A

   Wars zawa 02-665

   Telephone: (48 22) 508 0111

   Fax      : (48 22) 508 0112

 

10.Belneftekhim Petrokimya Ticaret Limited

   Senlikkoy Mah. Yeni Baglar Cad. No. 23/2

   34153 Florya-Bakirkoy-Istanbul

   Turkey

   Telephone: (90 212) 598 0310

   Fax      : (90 212) 598 0310

 

11.Polimir-Agro CHUP

   Zaozerie 211417

   Belarus 

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Producers of additives for lubricating oils.

 

NACE Code : 2059

 

Production capacity: 28,000 tonnes – 2013 - projected

 

Imports from Europe, Russia, India and China.

 

Exports to Europe and Russia.

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices, a manufacturing unit and storage facilities located at the heading address.

 

 

REGISTERED OFFICE

 

Novopolotsk-1

Novopolotsk 211440

Vitebskaya Oblast

 

 

SPECIAL NOTE

 

You enquired on: JVLL LLK – NAFTAN. Please note that the correct name is as per heading.

 

Interviewed:       Aleksey Markovich Zvonkin (Chief Accountant).

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.102.95

Euro

1

Rs.84.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.