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Report Date : |
17.07.2014 |
IDENTIFICATION DETAILS
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Name : |
NATIONAL ELECTRIC POWER COMPANY LTD (NEPCO) |
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Registered Office : |
Industrial Area |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
1945 |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
·
Engaged in distribution of electric power ·
Also Provide consultancy services to the
Palestinian Energy Authority (PEA) in connection with feasibility studies for
a power plant and distribution grid in the Palestinian self-rule areas. |
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No. of Employees |
1,320 |
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 : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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) |
|
Jordan |
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 |
JORDAN ECONOMIC OVERVIEW
Jordan's economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources underlying the government's heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of poverty, unemployment, inflation, and a large budget deficit. Since assuming the throne in 1999, King ABDALLAH has implemented significant economic reforms, such as opening the trade regime, privatizing state-owned companies, and eliminating some fuel subsidies, which in the last decade spurred economic growth by attracting foreign investment and creating some jobs. The global economic slowdown and regional turmoil, however, have depressed Jordan's GDP growth, impacting export-oriented sectors, construction, and tourism. In 2011 and 2012, the government approved two economic relief packages and a budgetary supplement, meant to improve the living conditions for the middle and poor classes. Jordan's finances have also been strained by a series of natural gas pipeline attacks in Egypt, causing Jordan to substitute more expensive diesel imports, primarily from Saudi Arabia, to generate electricity. Jordan is currently exploring nuclear power generation in addition to the exploitation of abundant oil shale reserves and renewable technologies to forestall energy shortfalls. In 2012, to correct budgetary and balance of payments imbalances, Jordan entered into a $2.1 billion, multiple year International Monetary Fund Stand-By Arrangement. Jordan's financial sector has been relatively isolated from the international financial crisis because of its limited exposure to overseas capital markets. In 2013, Jordan depended heavily on foreign assistance to finance the budget deficit, as the influx of about 600,000 Syrian refugees put additional pressure on expenditures
|
Source
: CIA |
Company Name : NATIONAL ELECTRIC POWER COMPANY LTD (NEPCO)
Country of Origin : Jordan
Legal Form : Public Shareholding Company
Registration Date : 1945
Issued Capital : JD 230,000,000
Paid up Capital : JD 230,000,000
Total Workforce : 1,320
Activities : Power generation
Financial Condition : Poor
Payments : Nothing detrimental uncovered
Operating Trend : Steady
NATIONAL ELECTRIC POWER COMPANY LTD (NEPCO)
Location : Industrial
Area
PO Box : 2310
Town : Amman 11118
Country : Jordan
Telephone : (962-6) 5858615
/ 5804000 / 5815615 / 5817615
Facsimile : (962-6)
5818336 / 5856421
Email : info@nepco.com.jo
Subject operates from a large suite of offices that are rented and
located in the Industrial Area of Amman.
Name Position
· Malek Kabariti Chairman
· Farouq Al Hiyari Vice
Chairman
· Dr Ghaleb Ma’abreh Managing
Director
· T Al Qatawneh Director
· Asri Qutishat Director
· Dr Hamzah Jaradat Director
· Abdullah Kawaldah Director
Date of
Establishment : 1945
History : Subject was incorporated
in 1945 under the of “Jordan Electricity Authority
(JEA)”. On 1st
September 1996, and following the preparation to have some
shares of the subject floated on the Amman Stock Exchange, subject
changed
its
name to the current style of “National Electric Power Co Ltd (NEPCO)”.
Legal Form : Public
Shareholding Company
Issued Capital : JD 230,000,000
Paid up Capital : JD 230,000,000
· Jordan Investment
Corp (JIC) * 100%
* Jordan Investment Corp (JIC) is wholly owned
by the Jordanian government. JIC is planning a public offering of some of its
shares in National Electric Power Co Ltd (NEPCO), but a timetable has yet to be
set.
· Irbid District Electricity
Company (IDECO)
PO Box: 46
Amman
Tel: (962-6)
5636381
· Jordan Electric
Power Co Ltd
Industrial Area
PO Box: 618
Amman
Tel: (962-6) 5636381 / 5614381
Fax: (962-6) 5648467
Activities: NEPCO has the
monopoly on power generation in Jordan and is also responsible for the
distribution of
electric power to Aqaba and neighbouring
towns and villages falling within its concession area. It currently
has about a million subscribers in the
various categories, and demand is continuing at an estimated 10
percent annually.
NEPCO is to provide consultancy services to the Palestinian Energy
Authority (PEA) in connection with feasibility studies for a power plant and
distribution grid in the Palestinian self-rule areas.
Subject
has awarded a US$ 145 million contract to Zurich based ABB Asea Brown Boveri
for the supply and installation of
turbines and boilers for the expansion of the Aqaba thermal power station.
2011 2012
Peak load for Interconnected System (MW) Generated
2770 2880
Sent-out 2660
2770
Available Capacity for Interconnected System (MW) Generated 3437
3437
Sent-out 3312
3312
Purchased energy (GWh) 15477
16470
Sold Energy (GWh) 15132
16123
Transmission Losses (%) 2.23
2.11
National Grid Transmission Lines 132 kV and above (Km-Circuit) 4121
4202
Substations Installed Capacities 132/33kV (MVA) 6263 6909
Substations Installed Capacities 400/132/33kV (MVA) 3760 3760
No. of Employees 1312
1320
NEPCO’s Fixed Assets (Million JD) 532
536
Manpower Indicators
Annual Productivity (GWh Sold/Employee) 11.5
12.2
Transforming Installed Capacity (MVA/Employee) 7.9 8.3
Financial Indicator
Total Cost (Fils/kWh sold) 120.04
136.49
Cost of Energy Purchased (Fils/kWh sold) 114.84 127.91
Other Costs (Fils/kWh sold) 5.20
8.58
Revenues (Fils/kWh) sold 53.42
64.68
Current Ratio (Times) 0.19
0.20
Net Profit (Loss) Ratio (%) (125.4)
(107.0)
Total Debt to Total Assets Ratio (%) 110.1
259.2
Technical Indicator
Transmission Losses (%) 2.23
2.11
Number of Interruption 71
37
Unsupplied Energy (MWh) 1417
4690
Average Interruption Duration (Min/ Interruption) 18.31
33
Average Unsupplied Energy (MWh/ Interruption) 20 120
Interruption Duration (Min) 1300
1260
Operating Trend: Steady
Subject has a workforce of approximately 1,320 employees.
Financial highlights provided by local sources are given below:
Currency: Jordanian Dinars (JD)
Balance Sheet 31/12/12
31/12/11
Assets
Non-Current assets
Property and equipment 462,133,405
458,962,879
Projects under construction 36,061,643
38,224,975
Investments in subsidiaries 150,000
150,000
Investment in financial assets available-for-sale 1,865,965
1,920,923
Long-term loan receivable 1,956,060
1,675,061
Total non-current assets 502,167,073
500,933,838
Current assets
Inventory 24,799,915
23,242,022
Receivables and other debit balances 218,842,547
164,822,805
Cash and cash equivalent 329,609
309,946
Total current assets 243,972,071
188,374,772
TOTAL ASSETS 746,139,144
689,308,610
EQUITY AND LIABILITIES
Equity
Capital 230,000,000
230,000,000
Statutory reserve 6,384,000
6,384,000
Voluntary reserve 4,730,371
4,730,371
Special reserve 4,730,371
4,730,371
Treasury rights 21,517,989
19,980,445
Cumulative change in fair value of investments in financial assets 1,557,393 1,612,351
Accumulated losses (2,373,690,455)
(1,215,918,970)
Net equity (2,104,770,331)
(948,481,432)
Liabilities
Non-current liabilities
Long-term borrowings 1,583,434,179
605,467,720
Provision for end-of-service indemnity 6,424,953
5,643,139
Subscribers’ contributions received on projects under construction 17 54,930,231 53,726,309
Grants and donations 45,016
49,532
Total non-current liabilities 1,644,834,379
664,886,700
Current liabilities
Banks overdrafts 49,165,655
80,651,593
Current portion of long-term borrowings 350,309,398
153,667,024
Payables and other credit balances 802,628,570
734,613,252
Income tax provision 3,971,473
3,971,473
Total current liabilities 1,206,075,096
972,903,342
Total liabilities 2,850,909,475
1,637,790,042
TOTAL EQUITY AND LIABILITIES 746,139,144
689,308,610
Statement of
Income
Operating Sales
Sales of electric power 1,026,211,991
795,249,711
Other electric revenues 1,007,243
507,197
Total operating revenues 1,027,219,234
795,756,908
Deduct: Operating expenses
Purchases of electric power (2,062,218,096)
(1,737,817,017)
Gas carriage expenses to Al-Qatranah and Al-Samrah stations (4,373,549)
(998,319)
Depreciations (28,548,011)
(28,152,468)
Maintenance expenses (2,424,953)
(1,481,762)
Administrative and operating expenses (27,595,168)
(24,753,023)
Total operating expenses (2,125,159,777)
(1,793,202,590)
Operating losses (1,097,940,543)
(997,445,682)
Financing expenses (75,279,243)
(21,660,241)
Gains (losses) on foreign currency differences 1,287,105 (1,486,845)
Other revenues 1,238,240
1,570,947
Other expenses (126,079)
(154,705)
Settlement of liabilities of previous years 13,065,768
11,013,212
Loss before directors’ remuneration (1,157,754,752)
(1,008,163,314)
Directors’ remuneration (16,733)
(16,221)
Loss of the year (1,157,771,485)
(1,008,179,535)
Local sources consider subject’s financial condition to be Poor.
Please note that figures for the year ending 31st
December 2013 were not available.
·
Arab Bank Plc
Shmeisani Branch
PO Box: 950545
& 950544
Amman 11195
Tel: (962-6)
5607231 / 5607115
Fax: (962-6)
5606793 / 5606830
No complaints regarding subject’s payments have been reported.
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.60.19 |
|
|
1 |
Rs.103.14 |
|
Euro |
1 |
Rs.81.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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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 |
|
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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 |
-- |
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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.