MIRA INFORM REPORT

 

 

Report No. :

309674

Report Date :

26.02.2015

 

IDENTIFICATION DETAILS

 

Name :

BP ASIA LTD.

 

 

Formerly Known as : 

Amoco Chemical Asia Pacific Ltd

 

 

Registered Office :

Suites 2201-2202, 22/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.08.1971

 

 

Com. Reg. No.:

03360439

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter, Wholesaler and Distributor of Marine Bunker, Fuel, Lubricant, Chemicals, Cutting Fluid, Grease, Dielectric Oil, Gear Oil, Hydraulic Oil, Aviation Oil and Other Petroleum Products.

 

 

No. of Employees

Company Employees

110.  (Including 95 local staff)

 

Group Employees

           

As at 31-12-2013

83,900 (Approximately)

 

 

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 :

Good

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Hong Kong - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 


Company name     

 

BP ASIA LTD.

 

 

Company ADDRESS

 

ADDRESS:                   Suites 2201-2202, 22/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.

 

PHONE:                        852-2586 8899, 2586 8951

FAX:                             852-2586 8981, 2586 8875, 2827 1609

 

E-MAIL:                        lop@bp.com

ratajsh@bp.com

jon.platt@bp.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Wong Wai Yee

 

 

SUMMARY

 

Incorporated on:             13th August, 1971.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$780,000,000.00

Issued:             HK$780,000,000.00

 

Business Category:       Petroleum Merchant.

 

Group Sales:                 US$379,136 million.  (Year ended 31-12-2013)

 

Company Employees:  110.  (Including 95 local staff)

 

Group Employees:        Approx. 83,900.  (As at 31-12-2013)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Good.


COMPANY ADDRESS

 

Registered Head Office:-

Suites 2201-2202, 22/F., Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong.

 

China Offices:  Beijing, Shanghai and Guangzhou.

 

Immediate Holding Company:-

BP Global Investments Ltd., UK.

 

Ultimate Holding Company:-

BP p.l.c., UK.

 

Associated Companies:-

BP Group of Companies

Atlantic Richfield Co., US.

BP America Production Co., US.

BP America, US.

BP Amoco Exploration, UK.

BP Australia Capital Markets, Australia.

BP Capital Markerts America, US.

BP Capital Markets, UK.

BP Company North America, US.

BP Corporate Holdings, UK.

BP Corporation North America, US.

BP Energy do Brazil, UK.

BP Exploration Operating Co., UK.

BP Exploration & Production, US.

BP Exploration (Alaska), US.

BP Exploration (Alpha), India.

BP Exploration (Angola), UK.

BP Exploration (Caspian Sea), UK.

BP Finance Australia, Australia.

BP Global Investments, UK.

BP Guangzhou Development Oil Products Co. Ltd., China.

BP Holdings North America, UK.

BP International, UK.

BP Norge, Norway.

BP Oil International, UK.

BP Oil New Zealand, New Zealand.

BP Products North America, US.

BP Zhuhai Chemical Co. Ltd., China.

Burmah Castrol, UK.

Guangdong Dapeng LNG Co. Ltd., China.

Shanghai Secco Petrochemical Co. Ltd., China.

Shenzhen Cheng Yuan Aviation Oil Co. Ltd., China.

South China Bluesky Aviation Oil Co. Ltd., China.

Standard Oil Co., US.

Yangzi Peetrochemical Co. Ltd., China.etc.

 

 

BUSINESS REGISTRATION NUMBER

 

03360439

 

 

COMPANY FILE NUMBER

 

0024836

 

 

MANAGEMENT

 

Managing Director:  Mr. Wong Wai Yee

 

 

CAPITAL

 

Nominal Share Capital: HK$780,000,000.00 (Divided into 780,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$780,000,000.00

 

 

 

SHAREHOLDERS

(As per registry dated 13-08-2014)

 

Name

 

No. of shares

BP Global Investments Ltd.

Chertsey Road, Sunbury on Thames, Middlesex TW16 7BP, UK.

 

779,999,998

Kenilworth Oil Co. Ltd.

Chertsey Road, Sunbury on Thames, Middlesex TW16 7BP, UK.

 

2

 

 

––––––––––

 

Total:

780,000,000

=========

 


DIRECTORS  

(As per registry dated 13-08-2014)

 

Name

(Nationality)

 

Address

WONG Wai Yee

Flat D, 22/F., Tower 1, Star Crest, 9 Star Street, Hong Kong.

 

Mark WILSON

34 Gerard Road, London SW13 9RG, England.

 

LAU Chun Yue

Flat H, 30/F., Block 6, Bellagio, Sham Tseng, New Territories, Hong Kong.

YANG Xiaoping

Jinhui Road, 333 Lane, House 35, Shanghai 201107, China.

 

 

SECRETARY 

(As per registry dated 13-08-2014)

 

Name

Address

Co. No.

CFAS Ltd.

21/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

1208831

 

 

HISTORY

 

The subject was incorporated on 13th August, 1971 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject was originally registered under the name of Amoco Chemicals Hong Kong Ltd., name changed to Amoco Chemicals Far East Ltd. on 9th December, 1983; to Amoco Chemical Asia Pacific Ltd. on 22nd March, 1994; and further to the present style on 1st March, 2002.

 

Formerly the subject was located at 16/F., Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong, moved to the present address in December 2000.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Wholesaler and Distributor.

 

Lines:                           Marine bunker, fuel, lubricant, chemicals, cutting fluid, grease, dielectric oil, gear oil,  hydraulic oil, aviation oil and other petroleum products.

 

Trade Marks:                 BP” and “CASTROL”.

 

Company Employees:  110.  (Including 95 local staff)

 

Group Employees:        Approx. 83,900.  (As at 31-12-2013)

 

Commodities Imported:-

BP” lubricant, cutting oil, grease, dielectric oil and hydraulic oil – Europe and Singapore.

Gear oil – Europe and Singapore.

Other petroleum products – Worldwide.

 

Markets:                        Hong Kong, China, other Asian countries, etc.

 

Group Sales:                 US$239,272 million  (Year ended 31-12-2009)

US$297,107 million  (Year ended 31-12-2010)

US$375,713 million  (Year ended 31-12-2011)

US$375,765 million  (Year ended 31-12-2012)

US$379,136 million  (Year ended 31-12-2013)

US$279,571 million  (9 months ended 30-09-2014)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$780,000,000.00 (Divided into 780,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$780,000,000.00

 

Increases of Nominal Capital:-

From

HK$10,000.00

to

HK$         25,000.00

on

30-12-1974

From

HK$25,000.00

to

HK$780,000,000.00

on

13-06-2008

 

 

Alternation of Issued Capital:-

20-10-1971

paid up

HK$      1,000.00

30-12-1974

paid up

HK$      9,000.00

31-12-1974

paid up

HK$      15,000.00

13-06-2008

paid up

HK$779,975,000.00

 

 

–––––––––––––––––

Total:

paid up

HK$780,000,000.00

================

 

Group Net Profit/(Loss):            US$16,544 million          (Year ended 31-12-2009)

(US$  3,669 million)       (Year ended 31-12-2010)

US$25,609 million          (Year ended 31-12-2011)

US$11,251 million          (Year ended 31-12-2012)

US$23,758 million          (Year ended 31-12-2013)

US$  8,376 million         (9 months ended 30-09-2014)

 

Group Net Worth:          US$101,613 million  (As at 31-12-2009)

US$  94,987 million  (As at 31-12-2010)

US$111,568 million  (As at 31-12-2011)

US$118,546 million  (As at 31-12-2012)

US$129,302 million  (As at 31-12-2013)

US$125,818 million        (9 months ended 30-09-2014)

 

Profit or Loss:               Group made profits in past three years.

 

Condition:                     Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments on time.

 

Commercial Morality:     Good.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Citibank N.A., Hong Kong Branch.

 

Banking:-

Bank source reported the subject maintains with the bank an active and properly conducted HKD account opened in August 1973 with balances averaging in low six figures for the past six months.  It also maintains with the bank a USD account with an average balance of low three figures.  Their relationship has been satisfactory.

 

Standing:  Very Good.

 

 

GENERAL

BP Asia Ltd. [BP Asia] was incorporated in August 1971 as a wholly-owned subsidiary of BP Global Investments Ltd. which is a UK-based firm.  BP Global Investments Ltd. is in turn a subsidiary of BP p.l.c. [BP], a listed company in the United Kingdom.

Being one of the United Kingdom’s largest companies, BP is the holding company of one of the world’s largest energy companies, providing customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.  BP Asia’s associated company BP Hong Kong Ltd. [BPHK] which is the marketing office of the BP products in Hong Kong while BP Asia is administering the BP business in Hong Kong, China, Taiwan and the Asia Pacific region.

Since 1983, BPHK is the Asia Pacific Regional Centre for BP with representatives from Exploration and Production and Gas and Power (Upstream), Refining and Marketing (Downstream) and Chemicals business streams.

BP’s Upstream segment is responsible for its activities in oil and natural gas exploration, field development and production, and midstream transportation, storage and processing.  It also markets and trades natural gas, including liquefied natural gas, power and natural gas liquids.  In 2013 its activities took place in 27 countries.

Its Downstream segment is the product and service-led arm of BP, focused on fuels, lubricants and petrochemicals.  It has significant operations in Europe, North America and Asia, and also manufacture and market its products across Australasia, southern Africa and Central and South America.

BP does not operate a retail network in Hong Kong, but supplies gas to Hong Kong along a 778-km pipeline from its Yacheng gas field (BP 34.3%) – the largest offshore natural gas field in China – some 90 kms southwest of Hainan Island.  It is also a partner in the construction of a liquefied natural gas [LNG] terminal at Guangdong, which has been supplying Hong Kong since 2006.

BP’s ordinary shares is the London Stock Exchange [LSE].  BP’s ordinary shares are a constituent element of the Financial Times Stock Exchange 100 index.  BP’s ordinary share are also traded on the Frankfurt Stock Exchange in Germany.  In the United States, BP’s securities are traded in the form of ADSs.  ADSs are listed on the New York Stock Exchange.

Hong Kong is at the hub of BP’s expanding Asia operations, serving as a regional centre for the Group and providing a base for its Asia Pacific President.  Several of the exploration, refining and marketing, chemicals, lubricants and marine businesses operating in the region are now represented in Hong Kong, as are the financial, legal, communications and human resource teams which support these activities.  BP in Hong Kong employs 110 employees, 95 of whom are local with 9 are currently posted outside Hong Kong.  It operates under both the “BP” and “Castrol” brands in the Hong Kong SAR.

Nowhere is BP’s expansion into Asia more evident than in China where it is now the country’s leading foreign oil company investor having invested more than US$2.5 billion in commercial projects, plus a further US$1 billion in the Initial Public Offerings [IPOs] of Sinopec and PetroChina.

BP is building world scale petrochemicals sites in China, and with its partners expects to create a retail network of 1,500 fuel stations.  BP is supporting the development of China’s natural gas resources and is developing the LNG, liquefied petroleum gas [LPG] and natural gas infrastructure to provide cleaner energy to expanding markets in the south, east and north of China.

BP’s activities in China include production and import of natural gas; supplying aviation fuel; importing and marketing liquefied petroleum gas [LPG]; retail service stations; production and sale of lubricants; solar power installations; joint venture chemical plants and the sales of chemicals technology.

BP has been operating in China since the early 1970s.  As at April 2013 BP operate 17 active joint ventures and wholly-owned BP business entities, hiring over 1,300 direct employees and about 3,700 people via its joint ventures.  With a total investment of about US$4.9 billion at the end of 2012, BP is one of the leading foreign investors in China.  BP’s business activities include deep water exploration, petrochemicals manufacturing and marketing, aviation fuel supply, oil product and lubricant retailing, and the chemicals technology licensing.

In China, BP’s upstream activities in the country include deepwater exploration in the South China Sea’s Block 42/05 (BP 40.82%), Block 43/11 (BP 40.82%) and Block 54/11 (BP 100%).

·         In July BP announced that it had signed a PSA with CNOOC for Block 54/11 in the South China Sea.  The new block is close to BP’s two other existing deepwater interests;

·         In December we completed the sale of our interests in the Yacheng offshore gas field (BP 34.3%) in China for $308 million (subject to post-closing adjustments).

In China, BP also has a 30% equity stake in the 7 million tonnes per annum capacity Guangdong LNG regasification and pipeline project in south-east China, making it the first foreign partner in China’s LNG import business.  The terminal is also supplied under a long-term contract with Australia’s North West Shelf venture.

BP is also engaged in a range of business activities in other Asian countries – Indonesia, Vietnam, Thailand, Malaysia, Singapore, Japan and Korea.  One of the most significant of these projects is the commercialisation of the vast Tangguh gas fields in the remote Indonesian province of Papua where more than 14.4 trillion cu.ft. of gas has been discovered.  This project also serves as an example of how BP works in partnership with local communities to manage environmental and social issues consistent with the Group’s strong belief that a good business should be both competitively successful and a force for good.

In December 2013, BP agreed to purchase all interests held by its partners, Mitsui Chemicals, Inc. (MCI) and Mitsui & Co. Ltd. (MBK) in PT Amoco Mitsui PTA Indonesia (AMI) which produces and markets PTA in the Republic of Indonesia.  This transaction completed on 28th February 2014 and is consistent with its strategy of growing its PTA business in its chosen markets.

For the year ended 31st December, 2013, the BP Group’s turnover and net profit were US$379,136 million and US$23,758 million respectively, compared with US$375,765 million and a net profit of US$11,251 million in 2012 respectively.

For the 9 months ended 30th September, 2014, the BP Group’s turnover and net profit were US$279,571 million and US$8,376 million respectively, compared with US$285,419 million and a net profit of US$22,660 million in 2013 respectively.  Its net profit dropped substantially for the period.  It is predicted that its net profit for the whole year in 2014 will also dropped substantially as compare with 2013.  However, BP Group’s business is still profitable in 2014.

BP Asia is fully supported by BP Group.  History in Hong Kong is over 43 years.

On the whole, in view of the background and the parentage of BP Asia, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.05

UK Pound

1

Rs.96.03

Euro

1

Rs.70.43

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

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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