MIRA INFORM REPORT
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Report No. : |
335748 |
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Report Date : |
08.08.2015 |
IDENTIFICATION DETAILS
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Name : |
SINOPEC INTERNATIONAL PETROLEUM SERVICE CORPORATION |
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Registered Office : |
No. 67a, Ande Road, Xicheng District, Beijing 100120 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
19.12.2003 |
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Com. Reg. No.: |
100000000038550 |
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Legal Form : |
Sole State-Owned Enterprise |
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Line of Business : |
Subject dispatching labors for overseas engineering; undertaking
overseas petroleum & chemical engineering, road & bridge engineering,
house & architectural engineering, water conservancy & hydropower
engineering, municipal public engineering, steel structure engineering, fire
facilities engineering & power engineering; industrial installation
engineering and international bidding engineering; petroleum engineering
equipment renting & trading; and international trade. |
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No. of Employees : |
1,248 |
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 : |
No Complaints |
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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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2014 stood as the largest economy in the world, surpassing the US that year... Still, per capita income is below the world average.
The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than 274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development.
Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company Name & address
SINOPEC INTERNATIONAL PETROLEUM
SERVICE CORPORATION
NO. 67A, ANDE ROAD, XICHENG DISTRICT, BEIJING 100120 PR CHINA
TEL: 86 (0) 10-51586500
FAX: 86 (0) 10-51586550
EXECUTIVE
SUMMARY
Date of Registration : december 19, 2003
REGISTRATION NO. : 100000000038550
LEGAL FORM : SOLE STATE-OWNED
ENTERPRISE
CHIEF EXECUTIVE :
zhang yongjie (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 700,000,000
staff :
1,248
BUSINESS CATEGORY : engineering
REVENUE : CNY 1,448,720,000
(FROM JAN. 1, 2014 TO JUNE. 30, 2014)
EQUITIES :
CNY 839,756,000 (AS OF JUNE. 30, 2014)
WEBSITE : www.sipsc.com
E-MAIL :
sipsc@sinopec.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a sole
state-owned enterprise of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 100000000038550 on December 19, 2003.
SC’s Organization Code Certificate No.:
71093226-7
SC’s Tax No.: 110105710932267
SC’s registered capital: cny 700,000,000
SC’s paid-in capital: cny 700,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
1000001003855 |
100000000038550 |
|
Legal Representative |
Zhang Yaocang |
Zhang Yongjie |
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Shareholder (s) |
China Petrochemical Corporation 100% |
Sinopec Oilfield Service Corporation 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Sinopec Oilfield Service Corporation |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Yongjie |
|
Supervisor |
Meng Decheng |
RECENT DEVELOPMENT
All kinds of
certificates for products quality:
Business Permit for Export & Import issued by Ministry of Foreign
Trade & Economic Cooperation
Grade A Enterprise Certificate for Project Contracting issued by the
Ministry of construction
Business Permit for International Project Contracting & Manpower
Supplies
Certificate of HSE System
Certificate of ISO 9001, Version 2000
Grade A Certificate on Project Consultation
Certificate for Quality of all kinds of Products
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Sinopec Oilfield Service Corporation 100
--------------------------------------------
Registration No.: 110000015033121
Chief Executive: Jiao Fangzheng
Registered Capital: CNY 4,000,000,000
MANAGEMENT
Zhang Yongjie, Legal Representative, Chairman and General
Manager
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Gender: M
Age: 51
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Sinopec Oilfield Service Corporation as deputy general
manager
Supervisor
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Meng Decheng
BUSINESS OPERATION
SC’s registered business scope includes dispatching
labors for overseas engineering; undertaking overseas petroleum & chemical
engineering, road & bridge engineering, house & architectural engineering,
water conservancy & hydropower engineering, municipal public engineering,
steel structure engineering, fire facilities engineering & power
engineering; industrial installation engineering and international bidding
engineering; petroleum engineering equipment renting & trading; and
international trade.
SC is mainly engaged in contracting overseas petroleum engineering.
SC's engineering
services mainly include:
Geophysical prospecting
Drilling and workover
Drilling of Horizontal Wells
Drilling of Cluster Wells
Under-balanced Drilling
The First Scientific Investigation Well in China
Offshore Drilling
Mud Logging, Wireline Logging, Cementing and Downhole Services
Oilfield Facility Construction
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
China Petrochemical Corporation
Sinopec Shengli Petroleum Administrative Bureau
Sinopec Jianghan Petroleum Administrative Bureau
Sinopec International Petroleum Services Ecuador S.A
Sinopec International Petroleum Service Colombia Limitada
Staff &
Office:
--------------------------
SC is known to have approx. 1,248
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries and branches at
present,
Sinopec International Petroleum Service Bengal Co., Ltd.
Sinopec International Petroleum Service Cameroon Co., Ltd.
Saudi Arabia Branch
Tel: (00966)-3-8575801 Ext 101
Fax: (00966)-3-8575803
Post Address: P.O.Box 32159, Al-khobar 31952, Saudi Arabia
Address: Eurovillage Compound Ground floor,New Office Building,
Al-khobar 31952,Saudi Abrabia
Kazakhstan Branch
Tel: (007)-3272-696164
Fax: (007)-3272-696130
Ecuador Branch
Tel: (00593)-2-3238818, PBX
Fax: (00593)-2-3238818 EXT 102
Email: chenweilong@sinopecservice-ec.com
Address: Pradera E7-174 Y Diego De Almagro Edificio Flacso, Torre 2,
Piso 6, Quito, Ecuador
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None in our database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of June. 30, 2014 |
|
Total assets |
1,587,832 |
2,811,055 |
3,966,222 |
2,292,979 |
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Total liabilities |
806,850 |
1,765,688 |
3,123,643 |
1,453,223 |
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Equities |
780,982 |
1,045,367 |
842,579 |
839,756 |
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Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
From Jan. 1,
2014 to June. 30, 2014 |
|
Revenue |
2,084,002 |
4,004,441 |
5,638,045 |
1,448,720 |
|
Profit before tax |
17,029 |
33,490 |
785 |
19,656 |
|
Less: profit tax |
13,807 |
23,148 |
26,301 |
17,155 |
|
Profits |
3,222 |
10,342 |
-25,516 |
2,501 |
Important Ratios
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|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31, 2013 |
As of June. 30,
2014 |
|
*Liabilities to assets |
0.51 |
0.63 |
0.79 |
0.63 |
|
*Net profit margin (%) |
0.15 |
0.26 |
-0.45 |
0.17 |
|
*Return on total assets (%) |
0.20 |
0.37 |
-0.64 |
0.11 |
|
*Revenue/Total assets |
1.31 |
1.42 |
1.42 |
0.63 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions. Taking into consideration of SC’s favorable background and market
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.81 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
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Report Prepared
by : |
TPT |
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 |
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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 |
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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 |
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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.