MIRA INFORM REPORT

 

 

Report No. :

356170

Report Date :

24.12.2015

 

IDENTIFICATION DETAILS

 

Name :

ELECTRICITY DISTRIBUTION COMPANY (EDCO)

 

 

Registered Office :

Wasfi Al Tal Street, Khalda, 830878, Amman 11183

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

12.02.1998

 

 

Legal Form :

Closed Shareholding Company

 

 

Line of Business :

Subject engaged in the distribution of electricity.

 

 

No. of Employee :

1,600

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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)

Jordan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 and resulting government debt. King ABDALLAH, during the first decade of the 2000s, implemented significant economic reforms, such as opening up foreign trade and privatizing state-owned companies that attracted foreign investment and contributed to average annual economic growth of 8% for 2004 through 2008. The global economic slowdown and regional turmoil since, however, reduced the average annual growth rate to 2.6% for the 2010-2013 period and hurt export-oriented sectors, construction, and tourism. Jordan's finances have 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. To diversify its energy mix, Jordan is currently exploring nuclear power generation, exploitation of abundant oil shale reserves and renewable technologies, as well as the import of Israeli offshore gas. In August 2012, to correct budgetary and balance of payments imbalances, Jordan entered into a $2.1 billion, three year International Monetary Fund Stand-By Arrangement. In 2014, fiscal reform measures enacted in the previous few years continued to boost government revenues and reduced the budget deficit even as an influx of over 620,000 Syrian refugees since 2011 put additional pressure on expenditures

 

Source : CIA

 

SUMMARY

 

Company Name                                    : ELECTRICITY DISTRIBUTION COMPANY (EDCO)

Country of Origin                                   : Jordan

Legal Form                                           : Closed Shareholding Company

Registration Date                                  : 12th February 1998

Commercial Registration Number           : 335, Amman

Issued Capital                                       : JD 10,000,000

Paid up Capital                                     : JD 10,000,000

Total Workforce                         : 1,600

Activities                                               : Distributors of electricity

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

 ELECTRICITY DISTRIBUTION COMPANY (EDCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Wasfi Al Tal Street

Area                 : Khalda

 

PO Box            : 830878

 

Town                : Amman 11183

Country : Jordan

 

Telephone         : (962-6) 5331330

Facsimile          : (962-6) 5341213

Mobile              : (962-79) 7497496 / 5922225

Email                : info@edco.jo

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Amman.

 

 

KEY PRINCIPALS

 

     Name                                                                                                           Position

 

·        Sameer Murad                                                                                             Chairman

 

·        Dr Adnan Mohamed Al Hassan                                                                    Vice Chairman

 

·       Hassan Ahmed Salamah Zeinabat                                                                 General Manager

 

·       Feras Kumrugi                                                                                              Financial Manager

 

·       Ibrahim Al Dabbas                                                                                        Accounts Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th February 1998

 

History                         : Subject changed ownership on 2nd July 2008

 

Legal Form                  : Closed Shareholding Company

 

Commercial Reg. No.   : 335, Amman

 

Issued Capital              : JD 10,000,000

 

Paid up Capital            : JD 10,000,000

 

Name of Shareholder (s)                                                     Percentage

 

·       Kingdom Electricity Co                                                         100%

Amman

Jordan

 

 

OPERATIONS

 

Activities: Engaged in the distribution of electricity.

 

Concession area that includes the Karak, Tafileh, Maan, and Aqaba governorates in the southern province of Jordan, the Jordan Valley, and the entire eastern region of the Kingdom extending to the Iraqi borders.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

                                                            Year Ending 31/12/14:

 

Net Profit                                              JD 19,300,000

 

Total Assets                                          JD 523,700,000

Local sources consider subject’s financial condition to be Good.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Jordan National Bank

PO Box: 1578

Amman

Tel: (962-6) 4612391

 

·       Arab Bank Plc

Shmeisani Branch

PO Box: 950545 & 950544

Amman 11195

Tel: (962-6) 5607231 / 5607115

Fax: (962-6) 5606793 / 5606830

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.66.20

UK Pound

1

Rs.98.30

Euro

1

Rs.72.41

JOD

1

Rs.93.11

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 


 

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.