MIRA INFORM REPORT

 

 

Report Date :

12.07.2014    

 

IDENTIFICATION DETAILS

 

Name :

P.T. CITRA TUBINDO TBK

 

 

Registered Office :

Kabil Indonesia Industrial Estate Jalan Hang Kesturi Km. 4 Kabil, Batam 29432 Batam Island, Riau

 

 

Country :

Indonesia

 

 

Date of Incorporation :

17.04.1997

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

·         Pipe Treading Industry

·         Green Pipe Making Industry

·         Investment Holding

 

 

No. of Employees

1,271

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

INDONESIA ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices

 

Source : CIA

 

 

 


Company name

 

P.T. CITRA TUBINDO TBK

 

 

address

 

Head Office & Factory

Kabil Indonesia Industrial Estate

Jalan Hang Kesturi Km. 4

Kabil, Batam 29432

Batam Island, Riau

Indonesia

Phones             - (62-778) 711 888 (hunting), 711 121-23

Fax                   - (62-778) 711 094

Land Area         - 20 hectares

Building Area     - 11 hectares

Region              - Industrial Estate

Status               - Rent

 

Representative Office

Wisma Metropolitan I, 11th Floor

Jalan Jend. Sudirman Kav. 29

Jakarta 12920

Indonesia

Phones             - (62-21) 525 0609 (hunting)

Fax                   - (62-21) 571 2317

Building Area     - 34 storey

Office Space      - 240 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

a. 23 August 1983 as P.T. CITRA TUBINDO ENGINEERING

b. 31 January 1984 as P.T. CITRA TUBINDO

c. 17 April 1997 as P.T. CITRA TUBINDO Tbk

 

Legal Form :

P.T. Tbk.(Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-3168.HT.01.01.TH.85

    Dated 25 May 1985

 

b. No. AHU-76795.AH.01.02.Tahun 2008

    Dated 23 October 2008

 

c. No. AHU-AH.01.10-08758

    Dated 23 March 2011

 

Company Status :

Domestic Investment (PMDN) Company

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.002.164.0-059.000

 

b. The Department of Industry and Trade

    TDP No. 041012700486

    Dated 23 April 2007

 

c. The Capital Investment Coordinating Board

    No. 82/I/PMDN/1984

    Dated 15 October 1984

 

Related Companies :

A member of the CITRA AGRAMASINTI Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - US$. 151,739,208.-  (Rp.320,000,000,000.-)

Issued Capital                - US$.   37,938,203.-  (Rp.  80,000,000,000.-)

Paid up Capital              - US$.   37,938,203.-  (Rp.  80,000,000,000.-)

 

Latest Shareholders (as of 31 December 2013):

a. KESTREL WAVE INVESTMENT Ltd.,                 - US$. 15,934,012.- (41.99%)

b. VALLOUREC & MANNESMANN TUBES            - US$. 12,708,159.- (33.49%)

c. NIPPON STEEL & SUMITOMO METAL Corp.      - US$.   2,646,753.- (  6.97%)

d. DR. Ing. Ilham Akbar Habibie                              - US$.        12,649.- (  0.03%)

e. Mr. Hedy Wiluan (Hedy Kurniawan)                     - US$.             184.- (  0.00%)

f.  DR. Ir. Suyitno Patmosukismo, M.H.                  - US$.               97.- (  0.00%)

g. Mr. Kris Taenar Wiluan                                      - US$.               97.- (  0.00%)

h. Mr. Andi Tanuwidjaja                                         - US$.               97.- (  0.00%)

e. Publics (less than 0.5% each)                            - US$.   6,636,155.- (17.52%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Pipe Treading Industry

b. Green Pipe Making Industry

c. Investment Holding

 

 

Production Capacity :

a. Pipe treads and Green Pipes         -   60,000 tons p.a.

b. High Grade Carbon Steel Pipes     - 190,000 tons p.a.

 

Total Investment :

a. Equity Capital         - US$. 150.9 million

b. Loan Capital           - US$. 123.2 million

c. Total Investment      - US$. 274.1 million

 

Started Operation  :

1 9 8 4

 

Brand Name :

CITRA TUBINDO

 

Technical Assistance :

a. Mannesmann rohren-Werke AG of Germany

b. Vallourec Industries of France


Number of Employee :

1,271 persons

 

Marketing Area :

Domestic (Local)    -   100 %

 

Main Customers :

a. Total E&P Indonesia

b. Cairn Energy India Pty. Ltd.

c. Latester Offshore Inc.

d. BUT Conoco Philips (Grissik) Ltd.

e. Chevron Indonesia Company

f.  Chevron Makassar Ltd.

g. Ras Gas Company Ltd.

h. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. GUNANUSA UTAMA FABRICATOR

b. P.T. BAKRIE CONSTRUCTION

c. P.T. KHALISTA ARTA BUANA

d. P.T. KURNIA BERCA INDONESIA

e. P.T. JAGAT BAJA PRIMA UTAMA

f.  P.T. BANGUN SARANA BAJA

g. Etc.

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

 a.  P.T. Bank CIMB NIAGA Tbk

      Graha CIMB Niaga

      Jl. Jend. Sudirman Kav. 58

      Jakarta Selatan

  b. P.T. Bank MANDIRI Tbk

Plaza Mandiri

      Jl. Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

 c.  STANDARD CHARTERED Bank

      Menara Standard Chartered

      Jl. Prof. Dr. Satrio No. 164

      Jakarta Selatan

 d. P.T. ANZ PANIN Bank

ANZ PANIN Building

      Jl. Jend. Sudirman Kav. 33A

      Jakarta Pusat

 

Auditor :

Purwantono, Suherman & Surya (a member of Ernst & Young)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2009 – US$. 237.1 million

2010 – US$. 214.1 million

2011 – US$. 204.0 million

2012 – US$. 200.9 million

2013 – US$. 244.2 million

 

Net Profit (Loss) :

2009 – US$. 14.1 million

2010 – US$. 18.4 million

2011 – US$. 50.1 million

2012 – US$. 34.3 million

2013 – US$. 38.3 million

 

Payment Manner :

Average

 

Financial Comment :

Fairly strong

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                - Mr. Kris Taenar Wiluan

Finance Director                  - Mr. Hedy Wiluan AKA Hedy Kurniawan

General Affairs Director         - Mr. Drs. Frankie Setiadi

Marketing Director                - Mr. Herman Hermanto

Technical Director                - DR. Adam Paul Brunet BA MA D.Phil FIEE C.Eng.

Investment Director              - Mr. Didier, Maurice, Francis Hornet

Un-affiliated Director             - Mr. Tjetjep Muljana

 

Board of Commissioner :

President Commissioner       - DR. Ir. Suyitno Patmosukismo MH

Commissioners                    - a. Mr. Sri Murwardjo Srimardji, MSc

                                            b. Prof. Dr. Johanes Berchmans Kristiadi Pudjosukanto

                                            c. DR. Ing. Ilham Akbar Habibie

                                            d. Mr. Jean-Pierre, Robert, Luc Michel

 

Signatories :

President Director (Mr. Kris Taenar Wiluan)  or one of Directors (Mr. Hedy Wiluan, Drs. Frankie Setiadi, Mr. Herman Hermanto, DR. Adam Paul Brunet and Mr. Didier, Maurice, Francis Hornet) which must be approved by the Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

 

 

 

 

OVERALL PERFORMANCE

 

Originally named P.T. CITRA TUBINDO ENGINEERING, the company was established in 1983 with an authorized capital of Rp. 800,000,000.- of which Rp. 160,000,000.- was issued and fully paid up. The founders and original shareholders of the company are P.T. CITRA PEMBINA PEMBANGUNAN INDUSTRIES and P.T. UNIMAS MOTOR WASTA, both are national private companies.   The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-3168.HT.01.01.Th.85 dated May 25, 1985. Its Articles of association has frequently amended for a couple of times.  In 1984 the company was renamed P.T. CITRA TUBINDO  In 1988 its authorized capital was entirely issued and paid up, on which occasion all its shares were taken over by P.T. CITRA AGRAMASINTI NUSANTARA. Later in 1989 the company was approved to go public and sell some 30.77% of its shares through the Jakarta Stock Exchange. In November 1993 its authorized capital was increased to Rp 150,000,000,000.- with the issued and paid up capital amounting to Rp 30,000,000,000.-.

 

In May 1994 its issued and paid up capital was raised to Rp 45,000,000,000.-. In August 1997 the company was renamed by adding Tbk (terbuka) behind the name to P.T. CITRA TUBINDO Tbk (P.T. CTT) adjusted to the new law of 1995 on public listed companies. In May 2000 its authorized capital was increased to Rp 320,000,000,000.- (US$.151,739,208.-) of which Rp. 80,000,000,000.- (US$ 37,938,203.-) was issued and fully paid up. The amendment to deed of the company was approved by the Ministry of Law and Human Right with the Decision Letter No. AHU-76795.AH.01.02.Tahun 2008 dated October 23, 2008 and No. AHU-AH.01.10-08758 dated March 23, 2011.  The latest shareholders of the Company are Kestrel Wave Investment Ltd., (41.99%), Vallourec & Mannesmann Tubes (33.49%), Nippon Steel & Sumitomo Metal Corporation (6.97%), DR. Ing. Ilham Akbar Habibie (0.03%) and Public (17.52%).

 

P.T. CTT (“the Company”) started its commercial operations in providing facilities for the oil industry, including finishing and threading of pipes and manufacturing of accessories, in 1984 and started providing services on heat treatment process for seamless pipes in 1992.  The Company’s head office and its factory are located in Kabil Industrial Estate, Jl. Hang Kesturi I Km. 4, Kabil, Batam, where it stands on a 3.5 hectare land. The plant manufactures of threaded seamless steel pipes (sized 2.375 inch to 20.0 inch) and accessories (coupling, pap joints, cross-over and blast joints). The plant manufactures the products under the license of MANNESMANN ROHREN-WERKE AG of Germany and VALLOUREC INDUSTRIES of France. Besides, the plant also performs pipe straightness testing, pipe threading amelioration, pipe thread coating or overlaying with phosphate, tin, copper or zinc. The company’s products are marketed domestically and exported to Japan, United States, Canada, Australia, Middle East, Venezuela, Africa and Asia. 

 

In January 2012, the Company signed an agreement with PT. Unimas Motor Wasta, granting the right to PT. Unimas Motor Wasta, to act as its marketing agent in Indonesia for Oil Country Tubular Goods (OCTG) for a specific customer, Total Indonesie.  The agreement covers all sales and orders for OCTG manufactured by the Company and delivered in Indonesia to Total Indonesie. In June 2012, the Company entered into a service agreement for on-site service and/or emergency repairs of Truscope (UT), Four Probe Wall Monitor (UT), Amalog (EMI), and Sonoscope (EMI) system with National Oilwell Varco Pte. Ltd., (Tuboscope).  Under this agreement, Tuboscope agreed to provide one (1) Technical Specialist on the Company’s site for a term of two (2) years commencing from June 1, 2012 and may be thereafter extended by one (1) year without contract re-negotiation.  The Company pays compensation amounting to US$.4,350.00/month for the service provided.

 

Besides, P.T. CTT is also dealing with investment holding by controlling more than 50% in the following subsidiaries which are engaged in real estate, property, hotel, and information technology business.  The table of P.T. CTT’s subsidiary companies shall be as follows:

 

                                                                                                  (In US Dollar)

Name of Subsidiary

Lines of Business

Start of Operations

% of Ownership

Total Assets

(31 Dec. 2013)

PT. Hymindo Petromas Utama

Tread Connection

1988

99.90

3,615,075

NSCT Premium tubulars BV

Patent holder

2003

100.00

1,242,954

NS Connection Technology Inc.

Master Licensor

2003

100.00

2,956,337

NS Connection Technology Pte. Ltd.

Technical Support

2002

100.00

1,666,345

Citra Tubindo International Pte. Ltd.

Technical support

2004

100.00

4,902,346

Citra Tubindo Australia Pty. Ltd.

Technical support

2011

100.00

79,381

PT. Sarana Citranusa Kabil

Logistic services

2000

99.92

25,955,481

PT. Citra Pembina Pengangkutan Industries

Transportation Services

1984

98.92

12,757,101

PT. Citra Madya Cargindo

Stevedoring services

1989

97.92

3,869,187

PT. Pelayaran Citrastirta Tatasarana

Shipping services

1990

99.92

1,809,191

PT. Citra Pembina Logistik

Logistic services

2006

99.91

2,983,180

PT. Bandar Kabil Indonusa

Port services

2000

99.05

4,201

 

On February 13, 2012, the Company established a new subsidiary with 99% ownership under the name P.T. CITRA SARANA BAJA (CSB) in Batam, with authorized, issued and paid up share capital of Rp 1,000,000,000.  CSB is engaged in manufacturing seamless pipe, pie threading and services.  We observed that P.T. CCT is classified as a large sized company of its kind in the country of which the operation has been declining in the last four years.

 

Generally we find the demand of offshore oil and gas equipment such as; platform, jacket,  oil and gas field contracting and consulting services has kept on rising by at least 4% per years in the last five years in line with the growth and developing of oil and gas sectors, coal mining, heavy duty rental and others.  The activities of exploration and production in the oil and gas industry  in Indonesia did not reach maximum level and below the targeted figure.  The target lifting based on the State Budget fir 2013 for oil is 840,000 barrels per day and gas equivalent to 1,360,000 barerels per day and the realization is 2,080,000 oil equivalent, 5.45% below the State Budgetary figures (source: Kompas).  One of the reasons is that the oil wells are old and other factors being encountered were.

 

-          Transparency of the regulations/rules in relation to renewal mechanism of Oil and Gas Contract.

-          Regulations from the Minister of Energy and Mineral insist that majority shareholders of the renewed block must be Indonesian corporations.

 

Besides that the growing crude oil price started as from the middle of 1999 and constantly rising within 2007 has blown fresh air to Indonesian government and oil companies. In the effort of stabilizing the world's crude oil price above US$ 90 per barrel in 2008 and sharply dropped to US$ 44 per barrel in early 2009 and rose again to above US$ 100 per barrel at present.  Despite crude oil price problem, Indonesia has kept on attempting to increase its crude oil and natural gas production including natural gas. Details on crude petroleum (including condensate) and gas production in 2001 to as of August 31, 2013 are pictured bellows:

 

Year

Petroleum

(000 barrels)

Gas

Gas (000 MSCF)

LNG (000 MMBTU)

LPG (MT)

2001

490,145

2,803,034

1,257,446

2,190,120

2002

474,884

3,031,028

1,352,878

1,792,575

2003

420,995

3,142,605

1,347,349

1,921,757

2004

438,455

3,113,338

1,390,466

1,677,619

2005

387,698

3,036,195

1,338,782

1,581,727

2006

366,993

3,178,278

1,159,770

1,238,572

2007

357,143

2,949,506

1,258,951

1,671,715

2008

357,501

3,136,657

1,093,435

1,800,383

2009

346,312

3,023,944

   970,769

1,560,929

2010

341,228

3,291,912

1,017,216

2,538,106

2011

332,752

4,811,814

1,373,829

n.a.

2012

314,985

3,174,644

1,122,732

n.a.

2013*

200,598

2,162,319

   726,093

n.a.

 

According to financial report of P.T. CTT, its net income or revenues has been fluctuating in the last five years.   In 2010, P.T. CTT’s net income or revenues reached US$.214.1 million with a net profit of US$. 18.4 million, declined to US$.204.0 million with a net profit of US$. 50.1 million in 2011 to US$. 200.9 million, with a net profit of US$.34.3 million in 2012 and rose again to US$.244.2 million with a net profit of Rp.38.3 million in 2013.   We did not hear that the company having been black listed by Bank Indonesia (Central Bank) and registered in the court for detrimental cases.   The total assets of the company in 2010 amounted of US$ 273.7 million declined to US$ 245.0 million in 2011 and rose again to US$ 268.4 million in 2012 and to US$ 274.2 million in 2013.  Financial Highlights of the Company as of 31 December 2009, 2010, 2011, 2012 and 2013 are below:

 

                                                                                                (in US$ Thousand)

Description

2013

2012

2011

2010

2009

Statements of Income

 

 

 

 

 

- Net Income/Revenues

244,170

200,858

204,049

214,098

237,146

- Gross Profit

82,831

75,139

80,868

48,410

37,309

- Operating Profit

51,662

43,440

60,990

28,969

22,019

- Net Profit

38,264

34,315

50,134

18,402

14,125

Balance Sheet

 

 

 

 

 

Assets

 

 

 

 

 

- Total Net Working Capital

87,255

86,938

95,533

50,786

47,318

- Total Assets

274,151

268,438

245,024

273,675

198,297

- Investment in Shares of

  Stock

17,342

19,308

14,550

12,922

13,036

- Total Liabilities

123,248

125,830

100,944

160,530

90,491

- Total Stockholders’ Equity

150,903

142,608

144,080

113,146

107,806

The company's management is headed by Mr. Kris Taenar Wiluan (66), one of the top figures of the WILUAN or CITRA AGRAMASINTI Group. In his daily activities, he is assisted by Mrs. Hedy Kurniawan AKA Hedy Wiluan (64) as finance director, Mr. Drs. Frankie Setiadi (66), as general director, Mr. Herman Hermanto (63) as marketing director, Mr. Dr. Adam Paul Brunet BA (58) as technique director, Mr. Didier, Maurice, Francis Hornet (51) as investment director and Mr. Tjetjep Muljana (67) as Un-affiliated director. They have wide relations with government authorities and PERTAMINA top officials and foreign oil companies operating in Indonesia, as well as with other private businessmen within and outside the country. So far, we did not hear that the company's management having been involved in the business malpractices.

 

P.T. CITRA TUBINDO TBK., is sufficiently fairly good for business transaction. However, in view of the economic slowdown and political situation in the country is warming we recommend to treat prudently in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.19

UK Pound

1

Rs.103.15

Euro

1

Rs.81.87

 

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%)

 

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.