MIRA INFORM REPORT

 

 

Report No. :

354125

Report Date :

15.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MCDERMOTT MIDDLE EAST INC

 

 

Registered Office :

Sheikh Zayed Road, Plot No. 42, 56th Street, Jebel Ali Free Zone, PO Box 3098 & 16961, Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

18.10.1994

 

 

Com. Reg. No.:

300332

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

Line of Business :

Engaged in the engineering, procurement, construction and installation of specialized offshore fixed platforms and marine pipelines used for development drilling, production and transportation of oil and gas in the Middle East.

 

 

No. of Employees :

2,300

 

 

RATING & COMMENTS

 

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 :

Branch of a Foreign Registered Corporation

Payment Behaviour :

Regular

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

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

UNITED ARAB EMIRATES - ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis of 2008, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA


SUMMARY

 

Company Name                                    : MCDERMOTT MIDDLE EAST INC

Also Known As                                     : J RAY MCDERMOTT MIDDLE EAST INC

Country of Origin                                   : Panama

Legal Form                                           : Branch of a Foreign Registered Corporation

Start Date                                             : April 1989

Registration Date                                  : 18th October 1994

Commercial Registration Number           : 300332, Dubai

Trade Licence Number                           : 747

Chamber Membership Number               : 32237

Issued Capital                                       : UAE Dh 370,000,000

Paid up Capital                                     : UAE Dh 370,000,000

Total Workforce                                     : 2,300

Activities                                               : Engineering and construction services to the oil and gas industry

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Malik Sattar, Financial Controller

 

COMPANY NAME

 

MCDERMOTT MIDDLE EAST INC

 

 

ALSO KNOWN AS

 

J RAY MCDERMOTT MIDDLE EAST INC

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road, Plot No. 42, 56th Street

Area                 : Jebel Ali Free Zone

PO Box            : 3098 & 16961

Town                : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 8835200 / 8835100 / 8043593 / 8115025

Facsimile          : (971-4) 8835486 / 8855527

Email                : jray.epic@mcdermott.com / msattar@mcdermott.com

 

Premises

 

Subject operates from a large suite of offices and a fabrication yard that are leased and located in the Jebel Ali Free Zone.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Tom Mackey                                                                             Vice President

 

Stewart Smith                                                                            General Manager

 

Nick Higgins                                                                              Finance Manager

 

Malik Sattar                                                                               Financial Controller

 

Ayoub Abbass                                                                          Human Resources Manager

 

Lakshimim Rajh                                                                         Procurement Manager

 

Maurice Navaro                                                                         Public Relations Officer

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was incorporated in April 1989 and was established in the Jebel Ali

  Free Zone on 18th October 1994.

 

Legal Form      : Subject is the United Arab Emirates registered branch of McDermott International Inc, a  Limited Liability Company incorporated in Panama, which in turn is a subsidiary of  McDermott International Inc of the US.

 

McDermott Middle East Inc in the United Arab Emirates, operates as a Branch of a Foreign  Registered Corporation with its registered office located at the following address:

 

McDermott International Inc

757 North Eldridge Parkway

Houston, TX 77079

United States of America

Tel: (1-281) 8705011

Fax: (1-281) 8705095

Email: mdrinvestorrelations@mcdermott.com

 

Commercial Reg. No.   : 300332, Dubai

 

Trade Licence No.        : 747

 

Chamber Member No.  : 32237

 

Issued Capital              : UAE Dh 370,000,000

 

Paid up Capital            : UAE Dh 370,000,000

 

 

 

AFFILIATED COMPANIES

 

Subject is a member of the McDermott Group, headed by McDermott International Inc, a US company incorporated in Panama and engaged in various petroleum activities. The McDermott Group consists of the following concerns:

 

McDermott Dubai

 

Babcock & Wilcox Investment

 

Babcock & Wilcox Company

 

B&W Energy Investment Co

 

Creole Insurance Co Ltd

 

Hudson Engineering & Management Corp

 

Hydro Marine Services Inc

 

McDermott – ETPM VOF

 

McDermott (Holland) BV

 

McDermott International Investments Inc

 

McDermott Scotland Ltd

 

Varsy International NV

 

HeereMac

 

 

OPERATIONS

 

Activities: Engaged in the engineering, procurement, construction and installation of specialized offshore fixed  platforms and marine pipelines used for development drilling, production and transportation of oil and gas in the Middle East.

 

In July 2006, subject announced it was awarded a contract by ExxonMobil Middle East Gas Marketing Ltd. to provide engineering, procurement, construction and installation (EPCI) services for two wellhead platforms and pipelines, as part of the Al Khaleej Gas (AKG) Development Phase 2 Offshore Expansion Project.

 

Import Countries: The United States of America, Europe and the Far East.

 

Subject has a workforce of approximately 2,300 employees.

 

 

FINANCIAL DATA

 

Companies registered in Dubai, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

 

Citibank

Khalid Bin Waleed Street

Bur Dubai

PO Box: 749

Dubai

Tel: (971-4) 2522100

Fax: (971-4) 2524942

 

Emirates National Bank of Dubai

Baniyas Street

PO Box: 777

Dubai

Tel: (971-4) 2222555

Fax: (971-4) 2221110

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                    January 2003                 December 2005             January 2014

Credit amount                           450,000                         158,000                         251,000

Amount overdue                        0                                  0                                  0

Payment terms                          60 days                        60 days                        60 days

Payment Method                       Letters of Credit            Letters of Credit            Letters of Credit

Paying record                           No Complaints              No Complaints              No Complaints

Currency                                   Euros                           Pounds Sterling            Euros

 

 

GENERAL COMMENTS

 

Please note that the subject’s commercial registration number is 300332. The number “2051012872” belongs to McDermott Arabia Co Ltd based in Saudi Arabia.

 

Subject is a leading worldwide marine construction company and is a branch office of the Panamanian registered company “McDermott International Inc”, which in turn is a subsidiary of the well-known McDermott International Inc of the United States. As such it is deemed reliable for respecting its financial trade commitments.

 

McDermott's Middle Eastern facility has fabricated and installed over 630 structures, 330,693ST of steel, and has installed over 2,610 miles of pipeline throughout the Arabian Gulf, Egypt, India, the Caspian, Africa and the North Sea.

 

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.66.99

UK Pound

1

Rs.101.78

Euro

1

Rs.73.47

UAE Dirham

1

Rs.18.26

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.