MIRA INFORM REPORT

 

 

Report Date :

19.11.2014

 

IDENTIFICATION DETAILS

 

Name :

NIPPON GLOBAL TANKER CO LTD

 

 

Registered Office :

JX Nippon Oil & Energy Honsha, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

November 1978

 

 

Com. Reg. No.:

0100-01-135125

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in Tanker Chartering, Management, Operation (Consigned), Currently Operating a total 40-45 Tankers (--100%).

 

 

No of Employees :

3

 

 

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 :

Slow but correct

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

Company Name & address

 

NIPPON GLOBAL TANKER CO LTD

 

 

REGD NAME

 

Nippon Global Tanker KK

 

 

MAIN OFFICE

 

JX Nippon Oil & Energy Honsha, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-0004 Japan

Tel: 03-6275-5093         

                       

URL:                 http://www.neo.jx-group.co.jp (of the parent, JX Nippon Oil & Energy Corp)

E-Mail address: (thru the URL)

 

ACTIVITIES:     Tanker chartering, management, operation (consigned)

BRANCHES:     Nil

 

OFFICERS:       MASANOBU HAMADA, PRES   Masashi Nakayama, v pres       

                        Ken Kimura, dir                         Eitaro Sakaya, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 117,071 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 50 M

TREND STEADY                                   WORTH            Yen 1,000 M

STARTED         1978                                         EMPLOYES      3

 

COMMENT:      TANKER OPERATOR, OWNED BY JX NIPPON OIL & ENERGY CORP &  COSMO OIL CO.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Nippon Oil Corp (See REGISTRATION) originally in 1978 as Nisseki Ryoyu Tanker Co Ltd, when Nippon Oil Corp absorbed Mitsubishi Oil Co, and in Nov 2000, merged with Cosmo Tanker Co Ltd, owned by Cosmo Oil Co Ltd and renamed as captioned.  Specializes in tanker chartering, management, operation (consigned), and serving for crude oil transportation for JX Nippon Oil & Energy Corp & Cosmo Oil Co Ltd. (See REGISTRATION).  The two had agreed business tie-ups, including crude oil purchasing, refining, distribution, oil transportation, lube oil sales, etc, already in Nov 1999, which lead to the merger of the two tanker companies to streamline transportation operations.  Because the Japanese government’s administrative guidance has required that an agreement to charter tankers to transport crude oil for an oil company should be signed by a tanker company, not by the oil company per se, or the consignor of crude oil; therefore, the oil company needs a company to charter and arrange for tankers to carry crude oil to Japan.  The subject contract long-term time charter agreement with shipping companies and consign actual operations to subsidiary shipping companies of both JX Nippon Oil & Energy Corp and Cosmo Oil. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 amounted to 117,071 million, an 18% up from Yen 116,077 million in the previous term.  This is attributed to the increased transportation requirements plus the weaker Yen that raised revenues in Yen terms.  While at the same time the price of bunker oils increased which ate into their profits.  The recurring profit was posted at Yen 28 million and the net profit at Yen 18 million, respectively, compared with Yen 37 million recurring profit and Yen 25 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 40 million and the net profit at Yen 20 million, respectively, on a 5% rise in turnover, to Yen 123,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Nov 1978

Regd No:             0100-01-135125 (Tokyo-Chiyodaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         200,000 shares

Issued:                50,000 shares

Sum:                   Yen 50 million

           

Major shareholders (%): JX Nippon Oil & Energy Corp* (65), Cosmo Oil Co Ltd** (35)

No. of shareholders:  2

 

* JX Nippon Oil & Energy Corp, largest oil distributor in Japan, Tokyo, founded 1888, and in Apr 2010 merged with Nippon Mining Holdings Inc and renamed as JX Nippon Oil & Energy Corp, Tokyo, capital Yen 100,000 million, sales Yen 11,219,474 million, operating profit Yen 251,467 million, recurring profit Yen 328,300 million, net profit Yen 159,477, total assets Yen 7,401,408 million, net worth Yen 2,078,105 million, employees 25,569, pres Isao Matsushita  (The figures and contents refer to its Holding Company, JX Holdings Inc, as listed Tokyo S/E)

           

** Cosmo Oil Co Ltd, leading domestic capital oil refiner/distributor, Tokyo, founded 1939, listed Tokyo S/E, capital Yen 107,246 million, sales Yen 3,537,782 million, operating profit Yen 39,715 million, recurring profit Yen 41,847 million, net profit Yen 4,348 million, total assets Yen 1,635,679 million, net worth Yen 223,202 million, employees 1,714, pres Keizo Morikawa

           

Nothing detrimental is known as to the commercial morality of executives.

OPERATION

 

Activities: Tanker chartering, management, operation (consigned), currently operating a total 40-45 tankers (--100%).

 

Clients: [Oil refiners] JX Nippon Oil & Energy Corp, Cosmo Oil, other 

No. of accounts: 2

Domestic areas of activities: Nationwide

Suppliers: [Ship owners, operators] Nippon Yusen Kaisha, Mitsui-OSK, JX Tanker Co, Kyoei Tanker, Shinwa Kaiun, Kawasaki Kisen, Iino Kaiun, NS United Kaiun, other.

 

Payment record: Slow but correct

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, JX Nippon Oil & Energy Corp, and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen) Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

FINANCES (In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

123,000

117,071

116,079

112,384

Recur. Profit

　

40

28

37

93

Net Profit

　

20

18

25

57

Total Assets

　

　

16,789

17,119

17,158

Current Assets

　

　

16,789

17,119

17,158

Current Liabs

　

　

15,789

16,137

16,201

Net Worth

　

　

1,000

982

957

Capital, Paid-Up

　

　

50

50

50

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

5.06

0.85

3.29

178.23

    Current Ratio

　

..

106.33

106.09

105.91

    N.Worth Ratio

　

..

5.96

5.74

5.58

    R.Profit/Sales

　

0.03

0.02

0.03

0.08

    N.Profit/Sales

　

0.02

0.02

0.02

0.05

    Return On Equity

　

..

1.80

2.55

5.96

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.81

UK Pound

1

Rs.96.77

Euro

1

Rs.77.09

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

 

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.