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Report Date : |
17.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
GALFAR
ENGINEERING AND CONTRACTING SAOG |
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|
|
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Registered Office : |
Building No. 760,
Way No. 522, Al Omaran Street, Ghala Industrial Area, P O Box 533, Ruwi 113,
Muscat |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 (Parent Company) 31.12.2013 (Consolidated) |
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Date of Incorporation : |
17.08.1975 |
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Com. Reg. No.: |
1/01513/3 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Subject’s operations are performed through the following divisions: · Oil & Gas Division · Structures & Buildings Division · Utilities & Services Division · Environmental Division · Roads & Bridges Division |
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No of Employees : |
7,600 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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) |
|
Oman |
A2 |
A2 |
|
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 |
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 |
Company Name : GALFAR ENGINEERING AND CONTRACTING SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 17th August 1975
Commercial Registration Number : 1/01513/3
Issued Capital : RO 37,747,000
Paid up Capital : RO 37,747,000
Total Workforce : 7,600
Activities : Subject operates several divisions (see below for details)
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
GALFAR ENGINEERING
AND CONTRACTING SAOG
Registered &
Physical Address
Location : Building No. 760, Way No. 522
Street : Al Omaran Street
Area : Ghala Industrial Area
PO Box : 533, Ruwi 113
Town : Muscat
Country : Oman
Telephone : (968) 24525000 / 24703715 / 24703286
/ 24502294 / 24595019
Facsimile : (968) 24525250 / 24706778 / 24502145
Mobile : (968) 99865515
Email : galfar@omantel.net.om / abdelbagi@galfar.com
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Muscat.
Branch Office (s)
Location Description
·
Muttrah Sales
office premises
PO Box: 7577
Muscat
Tel: (968) 24591055 / 24591921
Fax: (968) 24591676
·
PO Box:
72218 Sales
office premises
Abu Dhabi
United Arab Emirates
Tel: (971-2) 6336111
Fax: (971-2) 6334111
Email: galfar@emirates.net.ae
·
PO Box:
22170 Sales
office premises
Doha
Qatar
Tel: (974) 44677518
Fax: (974) 44677519
·
Kompleks
Haji Tahir 2, No. 16, 2nd Floor Sales
office premises
Jalan Gadong BE3519
PO Box: 568
Darussalam
Brunei
Tel:
(673) 2422620
Fax: (673) 2424197
Name Position
·
Sheikh
Salim Bin Saeed Bin Hamed Al Fannah Al Araimi Chairman
·
Mohamed
Rashid Abdullah Al Araimi Vice
Chairman
·
Dr Adel
Bin Abdl Aziz Yahia Al Kindy Director
·
Dr
Hatem Bin Bakhiet Bin Said Al Shanfari Director
·
Sheikh
Yahya Bin Abdullah Al Fannah Al Araimi Director
·
Sheikh
Salim Abdullah Saeed Badr Al Rawas Director
·
Salman
Rashid Al Fannah Al Araimi Director
·
Hamad
Mohamed Al Wahaibi Director
·
Khalood
Mohamed Rashid Al Fannah Al Araimi Director
·
Dr Hans
Erlings Chief
Executive Officer
·
A
Naushad Business
Development Manager
·
S K
Khuntia Commercial
Manager
·
Mohamed
Al Ruzaigi Human
Resources Manager
·
Suresh
Menon IT
Manager
·
E A
Sheriff Purchasing
Manager
·
T S
Janardhanan Manager
– Oil & Gas Division
· J K Salvi Manager
- Structures
& Buildings Division
· J K Mitra Manager
- Utilities & Services Division
· T Varadarajan Manager
- Roads
& Bridges Division
·
Joginder
Singh Manager
– Environmental Division
Date of Establishment : 17th
August 1975
Legal Form :
Sharikat Al Mousahama Al
Omania (Societe Anonyme Omani
General - SAOG) (Omani Public Joint Stock
Company)
Commercial Reg. No. : 1/01513/3
Issued Capital : RO 37,747,000
Paid up Capital : RO 37,747,000
Name of Shareholder
(s) Percentage
·
Salem S
H Al Araimi 18.00%
·
Al
Siraj Investment & Projects Co 12.50%
·
Emaar
United for Investment & Projects Co 12.00%
·
P
Mohammed Ali 10.00%
·
PMA
International Co Ltd 5.00%
·
Qhassya
Projects & Investment Co 2.50%
·
Members
of the general public & private investors 40.00%
Name Percentage Held
·
Al
Datoor Contracting & Trading LLC -
Honda Road
Muttrah
PO Box: 7577
Muscat
Tel: (968) 24703715
Fax: (968) 24591921
·
Arabian
Industries LLC -
Jalan House
Al Khuwair
PO Box: 51
Al Rusayl 124
Tel: (968) 24626294 / 24626295
Fax: (968) 24626297
·
Mushrif
Trading & Enterprises LLC
-
Al Khuwair
PO Box: 1289
Muscat
Tel: (968) 24693619 / 24786835
Fax: (968) 24604600
·
National
Drilling & Services -
·
Al
Khalij Heavy Equipment & Engineering LLC 52.20%
·
Oman
Drilling & Services -
·
Musandam
Building Materials -
·
Galfar Training Institute LLC 99.50%
·
Galfar Engineering & Contracting Kuwait KSC -
Kuwait
·
Galfar Wasen Contracting Company -
Libya
·
Galfar Engineering and Contracting India Pvt Ltd 100%
India
·
Aspire
Projects & Services LLC 100%
Oman
·
Mahakaleshwar Tollways Pvt Ltd -
India
·
Ghaziabad Aligarh Expressway Pvt Ltd -
India
·
Shree Jagannath Expressways Pvt Ltd -
India
·
Galfar
Aspire Readymix LLC 99.00%
Activities: Subject’s operations are performed through
the following divisions:
· Oil & Gas Division
· Structures & Buildings Division
Engaged
in the design, supply, construction, and erection of the following:
- Harbours, jetties and marine works hydro
structures
- Buildings & commercial complexes,
stadiums, hospitals, monuments, forts, palaces.
- Industrial civil works for oil and gas,
petrochemical plants, infrastructure projects,
environmental engineering, and desalination
plants.
- Water supply & distribution works
· Utilities & Services Division
The Utilities & Services Division specialises in
electrical works (such as switch gears, sub stations, overhead lines,
cathodic protection, and startups), as well as instrumentation works, HVAC
works, building management systems, environmental engineering works and
maintenance contracts.
· Environmental Division
· Roads & Bridges Division
The Roads and Bridges Division offers
contracting services in relation to roads, highways, bridges, earthmoving and reclamation
works, asphalting works, preparation of rig locations and access roads.
All of subject’s
operations are ISO 9002 certified.
Contracts
Awarded
In December 2010, subject was awarded the project for the construction
of the Courts Complex in Nizwa, at the sum of RO 10,110,548 as per the
letter of the Ministry of Justice No. MOJ/PO/2010/422 dated 18 December 2010.
The completion period is 12 months in addition to 30 days for mobilization.
Subject was also
awarded Tender No. 150/2010 TB on “Design, Procure, Supply & Installation
of Package Sewage Treatment Plant at Al Duqum” for the Ministry of Regional
Municipalities and Water Resources vide their letter No. DGCW /
21/M/9/2345/2010, for a total sum of RO 1,399,289. The completion period is 365
days in addition to 60 days for mobilization.
In October 2010,
subject was awarded a contract by Petronas Carigali (Oman) Ltd vide their
letter No. PCOL/SCM/2010/OCT/020 received on 23/10/2010 for “Provision of Civil
Constructions and Services at Drilling campaign, onshore Sultanate of Oman” for
a total sum of RO 1,350,000The contract period is (3) years.
In September 2012,
subject has also been awarded the contract No.
MUK-CA-2012-CW-001 “Mukhaizna Airfield Upgrade“ for Occidental Mukhaizna
LLC. The contract value is RO 6,890,591.
Subject was also
awarded the Tender No. TB 292/2011 for the “construction of a Fishing Harbour
in the wilayat of Barka” for The Ministry of Agriculture & Fisheries
Wealth, valued at RO 10,913,437.
Subject was awarded
Tender No. 59/2013 for “Construction of the Catering Building Project at Muscat
International Airport (MC 13)” by the Ministry of Transport &
Communications, via their award letter No. MTC/TCD/T/4519/2013 received on 26th
November 2013 for a total sum of RO 67,366,652. The completion period of the
project is 548 days in addition to 90 days for the design.
Import
Countries: United Kingdom,
Germany and France
International
Suppliers:
·
Delta
Accessories & Domestic Switchgear Ltd United
Kingdom
·
Gent
Fire Alarm Systems Ltd United
Kingdom
·
BICC United
Kingdom
·
Ottermill
Switchgear United
Kingdom
·
Egon
Hillbrand Light Fitting Ltd United
Kingdom
·
Esto
Leuchtenfabric Germany
·
Legrand France
Operating Trend: Steady
Subject has a
workforce of approximately 7,600 employees.
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO 000’s)
Balance Sheet Parent
Company Consolidated
31/12/2013 31/12/2012 31/12/2013 31/12/2012
ASSETS
Non-current Assets
Property, plant
and equipment 110,404 105,750
120,347 115,010
Intangible assets
1,514 1,784
1,533 1,792
Investment in
subsidiaries 1,940 1,163
- -
Investment in
associates 8,706 8,661
6,444 9,729
Investment
available-for-sale 125 125
145 145
Retentions
receivables 32,246 22,249
32,246 22,249
54,935 139,732 160,715 148,925
Current Assets
Inventories 35,569 32,593
36,488 32,828
Due from
customers on contracts 53,582 44,778
54,737 45,313
Contract and
trade receivables 201,469 189,462
205,328 195,889
Advances, prepayments
and other receivables 19,848 21,654
18,762 17,451
Deposits with
bank 11,551 12,631
11,591 12,674
Cash and bank
balances 4,169 1,736
6,092 3,468
326,188 302,854 332,998 307,623
Total Assets 481,123
442,586 493,713 456,548
EQUITY AND LIABILITIES
Equity
Share capital 37,747 33,000
37,747 33,000
Share premium 23,370 16,503
23,370 16,503
Statutory reserve
12,582 11,000
12,888 11,106
Foreign currency
translation reserve - -
(1,788) (1,019)
Retained earnings
32,080 30,964
32,978 31,420
105,779 91,467
105,195 91,010
Non-controlling
interest - -
986 848
Total Equity 105,779
91,467 106,181 91,858
Non-current Liabilities
Term loans 46,150 27,721
46,714 28,337
Employees' end of
service benefits 10,919 8,658
11,067 8,788
Contract advances
from customers 9,450 32,827
9,450 32,827
Deferred tax
liability 6,899 7,120
7,305 7,302
73,418 76,326 74,536 77,254
Current Liabilities
Term loans -
current portion 30,625 36,401
31,116 36,955
Short term loans 35,400 35,650
35,400 35,650
Bank borrowings 87,713 58,094
90,248 61,903
Trade payables 91,678 87,251
96,171 90,031
Other payables
and provisions 55,333 55,915
59,319 60,894
Provision for
taxation 1,177 1,482
742 2,003
301,926 274,793 312,996 287,436
Total Liabilities 375,344
351,119 387,532 364,690
Total Equity and Liabilities 481,123
442,586 493,713 456,548
Income Statement
Contract income 392,178 320,615
403,723 328,817
Sales and
services income 2,097 3,560
8,685 7,687
Total revenue 394,275
324,175 412,408 336,504
Other income 1,634 2,598
1,844 2,784
Cost and other
direct costs (367,517) (298,656)
(380,257) (307,634)
Gross Profit 28,392
28,117 33,995 31,654
General and
administrative expenses (11,404) (10,034)
(12,959) (11,000)
Profit from operations 16,988
18,083 21,036 20,654
Financing costs,
(net) (9,078) (7,116)
(9,578) (7,829)
Share of loss of
associates - -
(1,618) (1,436)
Profit before tax 7,910
10,967 9,840 11,389
Income tax
expense (1,019) (1,389)
(2,256) (2,183)
Profit for the year 6,891
9,578 7,584 9,206
Local sources
consider subject’s financial condition to be Good.
·
Oman
International Bank
PO Box: 467
Azaiba 130
Tel: (968) 24596671 / 24596672
Fax: (968) 24596653
·
Bank
Muscat SAOG
Ruwi Main Branch
PO Box: 6326
Muscat
Tel: (968) 24561399 / 24708543
Fax: (968) 24561036
·
National
Bank of Oman Limited (SAOG)
Al Azaiba Roundabout
PO Box: 52, Mina Al Fahal 116
Muscat
Tel: (968) 24591340 / 24591341
Fax: (968) 24591340
No complaints
regarding subject’s payments have been reported.
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
Galfar Engineering
and Contracting SAOG is one of the largest and most reputed construction
companies in Oman. Established in 1975, the subject has grown into a
multi-disciplined contracting concern with activities covering sectors such as
oil & gas, utilities & services, roads and bridges.
The company is run
in a professional manner and is owned by members of the Al Araimi family, who
are prominent members of the local business community.
Local sources
report that payment obligations are met in a generally timely manner and the
operating history is clear. As such the company is deemed a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.72 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.