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Report Date : |
10.07.2014 |
IDENTIFICATION DETAILS
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Name : |
ORASCOM
CONSTRUCTION INDUSTRIES SAE (OCI) |
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Formerly Known as : |
Eng. Naguib Onsi
Sawiris & Co |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 (Consolidated) |
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Year of Establishments : |
1950 |
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Com. Reg. No.: |
38824, |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
· Engaged in Providing Construction Services, Cement Manufacturing and Infrastructure Concessions. Subject operates primarily as a Construction Company with
the production and sale of cement as a significant segment
of operations. Subject is organized into three Operating Groups; the
Construction Group, the Cement Group, and the Concessions and Other Building
Materials Group. |
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No of Employees : |
2,600 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Egypt |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
Company Name : ORASCOM CONSTRUCTION INDUSTRIES SAE (OCI)
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Registration Date : 1950
Commercial Registration Number : 38824, Giza
Tax Card Number : 200-011-057
Issued Capital : £E 1,044,700,000
Paid up Capital : £E 1,044,700,000
Total Workforce : 2,600
Activities : Construction services
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
ORASCOM CONSTRUCTION INDUSTRIES SAE (OCI)
Registered &
Physical Address
Building : Nile City Tower
Street : 2005A Corniche El Nil
Area : Mohandessin
Town : Cairo 11211
Country : Egypt
Telephone : (20-2) 24611111 / 24611112 / 24611113
/ 24611279
Facsimile : (20-2) 24619400 / 24619405 /
24619412 / 22619430
Email : info@orascomci.com
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Cairo.
Name Position
·
Nassef
Onsi Sawiris Chairman
·
Onsi
Sawiris Director
·
Salman
Butt Director
·
Osama
Bishai Director
·
Hassan
Abdulla Director
·
Jerome
Guiraud Director
·
Sami
Haddad Director
·
Aladdin
Saba Director
·
Arif
Naqvi Director
·
Dalia
Khorshid Corporate
Treasurer
·
Sameh
Loza Human
Resources Manager
·
Ashraf
Abdel Momen Corporate
Legal Affairs Manager
·
Kevin
Struve Strategic
Planning Manager
·
Rawi
Camel Toueg Administration
Manager
·
Hassan
Badrawi Business
Development Manager
·
Fady
Kiama Corporate
Controller
Date of Establishment : 1950
History : Subject was established in 1950 under the name of “Eng. Naguib Onsi Sawiris & Co” as
a Limited Liability Partnership. However on 30th March 1998 subject was re-registered as an Egyptian Joint Stock Company under the current style of “Orascom Construction Industries SAE (OCI)”
Legal Form :
Egyptian Joint Stock
Company
Commercial Reg. No. : 38824, Giza
Tax Card No. : 200-011-057
Issued Capital : £E 1,044,700,000
Paid up Capital : £E 1,044,700,000
Name of Shareholder
(s) Percentage
·
Members
of the Sawiris Family 55%
·
Abraaj Capital 6%
·
Local
businessmen and private investors 39%
Subsidiary
Name Stake Held
·
OCI International Cyprus (OCIIC) 100.0%
·
OCI Finance Limited (OCIF) 100.0%
·
Orascom Construction Industries Nigeria (OCIN) 99.9%
·
Orascom Construction Industries Algeria (OCIA) 99.9%
·
Orascom Industrial Investments 99.9%
·
Orascom Construction Industries – Egypt 99.9%
·
National Steel Fabrication 96.8%
·
Orascom Roads Construction Company 99.8%
·
Orascom Fertilizer Plant Maintenance Company 99.9%
·
OCI Construction – Egypt 99.9%
·
Suez Industrial Development Company (SIDC) 60.5%
·
Orascom Saudi 60.0%
·
Sofert Algerie Company 50.9%
·
OCI Tervi Skikda 50.0%
·
Orasqualia for the Development of Wastewater 50.0%
·
Orasqualia for Construction 50.0%
·
Orasqualia for Operation and Maintenance 50.0%
·
Alico Egypt 49.9%
·
United Company for Paints and Chemicals 49.9%
·
Bentini
Orascom Construction 49.0%
·
United Holding Company 27.2%
Activities: Orascom Construction Industries SAE (OCI) ranks among Egypt’s largest private sector businesses and is active in construction services, cement manufacturing and infrastructure concessions. The company operates primarily as a construction company with the production and sale of cement as a significant segment of operations. The company is organised into three operating groups; the Construction Group, the Cement Group, and the Concessions and Other Building Materials Group.
The OCI Construction Group provides
engineering, procurement and construction services on large, complex and
demanding projects for public and private customers primarily in the Middle
East, North Africa and Central Asia. OCI has undertaken numerous landmark
industrial, commercial and infrastructure projects including the world’s
largest swing bridge over the Suez Canal and the three tallest buildings in
Egypt.
This division also manufactures fabricated
steel products as well as architectural curtain walling and window systems.
The OCI Cement Group is the largest cement
producer in the Middle East and a leading regional cement exporter.
Subject’s principal operating cement
subsidiaries are Egyptian Cement Company, which has an installed annual
production capacity of 8 million tons, and Algerian Cement Company, which has
an installed annual production capacity of 5 million tons. The company are
currently constructing cement plants in Pakistan, Kurdistan and Nigeria which
will increase annual production capacity to 22.5 million tons. OCI export
cement primarily from Egypt to customers in more than 30 countries including
the USA, and also produce and distribute ready mix concrete and cement bags in
Egypt and Algeria.
· Concessions and Other Building Materials
Group
This division consists of equity investments
in companies which complement OCI’s construction activities. It also focuses on
equity investments in long term infrastructure projects locally and regionally.
Operating Trend: Steady
Subject has a
workforce of approximately 2,600 employees, and the Orascom Group has over
40,000 workers.
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (£E 000,000’s)
Consolidated
Balance Sheet 31/12/10 31/12/11 31/12/12
ASSETS
Non-current
assets
Property, plant
and equipment 18,605.7
20,055.6 14,342.8
Projects under
construction - - 7,807.0
Intangible assets
11,062.3
11,397.8 9,506.6
Investment in
associated companies 2,676.0
413.8 446.9
Investments available
for sale 406.8
415.3 421.4
Deferred tax
assets 35.5
13.1 29.2
Trade receivables 339.0 555.2 668.4
Total non-current
assets 33,125.3
32,850.8 33,225.9
Current assets
Inventories 1,885.7
2,239.5 2,415.4
Investments in
treasury bills - - 7,615.0
Marketable
securities 96.5
53.0 111.6
Trade and other
receivables 11,548.0
11,988.0 12,982.1
Due from clients 2,173.4
2,783.7 3,208.5
Cash on hand and
at banks 5,649.4
6,346.4 6,274.6
Assets held for
sale 397.8
3,039.1 2,389.8
Total current
assets 21,750.8
26,449.7 34,997.0
LIABILITIES
Current
liabilities
Bank overdraft
and loans 3,342.2
5,720.0 16,383.4
Trade and other
payables 10,345.9
9,812.5 15,082.0
Due to clients 2,964.1
1,573.6 1,097.1
Provisions 926.1
898.0 985.5
Income taxes
payable 394.0
607.6 875.8
Total current
liabilities 17,972.3
18,611.9 34,423.3
Working Capital 3,778.5 7,837.8 573.7
Total Investment to be financed as follows: 36,903.8 40,688.6 33,799.6
EQUITY
Shareholders'
equity
Share capital 1,044.7
1,044.7 1,077.7
Reserves 5,347.2 5,957.9 6,288.9
Own Shares (153.1) (723.7) (428.8)
Retained earnings
8,608.6
8,485.0 11,849.0
Deferred tax
revaluation of property, plant & equipment - (97.0) -
Cumulative
adjustment on translation of foreign companies (151.6) (86.0) -
Net profit/(loss)
for the year 3,344.4
4,028.9 (6,533.0)
Total shareholders'
equity 18,040.2
18,609.8 12,220.8
Minority interest
in subsidiary companies 1,044.3
1,165.6 1,210.4
Total equity 19,084.5
19,755.4 13,431.2
Non-current
liabilities
Loans and bonds 14,250.7
16,269.4 14,282.5
Provisions 2,082.3
2,153.1 274.6
Other long-term
liabilities 713.3
1,074.7 3,936.0
Deferred tax
liabilities 773.0
1,416.0 1,875.3
Total non-current
liabilities 17,819.3
20,913.2 20,368.4
Consolidated
Income Statement
Revenue 27,552.4
32,722.0 33,287.4
Cost (20,767.9) (24,315.9) (26,391.1)
Gross profit 6,784.5
8,406.1 6,896.3
Add (Less)
Other operating
income 20.7
312.8 1,425.6
Goodwill
impairment - - (2,529.8)
Selling, general and
administrative expenses (1,638.8) (1,764.8) (1,903.0)
Provision for
claims and impairment of debts (500.0) (219.9) (1,434.7)
Operating surplus 4,666.4
6,734.2 (1,926.9)
Interest income 101.6
81.0 108.3
Interest expense (672.1) (1,127.9) (3,613.1)
Gain (Losses) on
foreign currency exchange (42.0) 42.7 127.8
Net finance cost (612.5) (1,004.2) (3,377.0)
Investments
income 183.8
37.4 112.4
Net profit before
taxes 4,237.7
5,767.4 (5,191.5)
Income tax
expense (840.1) (1,555.9) (1,013.7)
Net profit from
continued operations 3,397.6 4,211.5 (6,205.2)
Discontinued
operation
Profit from
discontinued operation 251.5 268.9 -
Net profit for
the year 3,649.1
4,480.4 (6,205.2)
Attributable to:
Equity holders of
the Company 3,344.4
4,028.9 (6,533.0)
Minority
interests share in net profit of subsidiaries 304.7
451.5 327.8
Net profit for the year 3,649.1
4,480.4 (6,205.2)
Local sources
consider subject’s financial condition to be Fair.
Please note that financial figures for the year ending 31st
December 2013 are not yet available.
·
Delta
International Bank
113 Corniche El Nil Street
PO Box: 1159
Cairo
Tel: (20-2) 25740831
·
National
Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2) 33924175
Fax: (20-2) 33924143
No complaints
regarding subject’s payments have been reported.
Orascom
Construction Industries SAE (OCI) ranks among Egypt’s largest private sector businesses
and is active in construction services, cement manufacturing and infrastructure
concessions. The company operates primarily as a construction company with the
production and sale of cement as a significant segment of operations. The
company is organised into three operating groups; the Construction Group, the
Cement Group, and the Concessions and Other Building Materials Group.
OCI is the largest
cement producer in the Middle East and one of the top 200 construction
contractors in the world.
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.59.73 |
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UK Pound |
1 |
Rs.102.36 |
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Euro |
1 |
Rs.81.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.