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Report No. : |
301934 |
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Report Date : |
06.01.2015 |
IDENTIFICATION DETAILS
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Name : |
SHAWCOR LTD. |
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Registered Office : |
25 Bethridge Road, Toronto, Ontario M9W 1M7 |
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Country : |
Canada |
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Financials (as on) : |
30.09.2014 |
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Year of Incorporation : |
1954 |
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Legal Form : |
Public Company (TMX = SCL |
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Line of Business : |
Provides various technology-based products and services for the
pipeline, pipe services, petrochemical, and industrial segments of the oil
and gas industry, and other industrial markets worldwide. |
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No. of Employee : |
8,000 |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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Canada |
A1 |
A1 |
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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 |
CANADA ECONOMIC OVERVIEW
As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.
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Source
: CIA |
SHAWCOR LTD.
Headquarters: 25 Bethridge Road, Toronto, Ontario
M9W 1M7 – Canada
Telephone: +1
416-743-7111
Fax: +1 416-743-5927
Website: www.shawcor.com
Corporate ID#: 9075640
State: Federal
Judicial form: Public Company (TMX = SCL)
Date incorporated: 01-01-2015
Date founded: 1954
Stock: 64,489,249
shares issued and outstanding
Market capitalization: CAD 2,689,846,576=
Name of manager: Stephen
M. ORR
History:
Business issued from the merger
of:
- SHAW PIPE PROTECTION
LIMITED
- 9098658 CANADA INC.
- FLEXPIPE SYSTEMS INC.
- SHAWCOR LTD
Business:
ShawCor Ltd., an energy services company, provides various
technology-based products and services for the pipeline, pipe services,
petrochemical, and industrial segments of the oil and gas industry, and other
industrial markets worldwide.
It operates in seven divisions: Bredero Shaw, Flexpipe Systems, Shaw
Pipeline Services, Canusa-CPS, Guardian, DSG-Canusa, and ShawFlex.
The Bredero Shaw division provides internal and external corrosion
protection systems, insulation coating systems, and weight coating systems for
onshore and offshore pipelines, as well as pipe coating services for oil and
gas producers, pipe mills, pipeline owners, and pipeline construction
contractors.
The Flexpipe Systems division manufactures and sells spoolable composite
pipe systems that are used for oil and gas gathering, water transportation, CO2
injection, and other corrosive applications.
The Shaw Pipeline Services division provides ultrasonic and radiographic
pipeline girth weld inspection services to pipeline operators and construction
contractors.
The Canusa-CPS division manufactures and markets heat shrinkable
sleeves, adhesives, sealants, and liquid coatings for use in pipeline joint
protection systems and girth weld corrosion protection applications.
The Guardian division provides a range of tubular management services,
including mobile and in-plant inspection, as well as refurbishment and
rethreading of drill pipes, production tubing, and casing.
The DSG-Canusa division manufactures heat-shrink tubing, sleeves, molded
products, kits, and accessories for protection and sealing applications in electrical,
electronic, automotive, and communications markets.
The ShawFlex division manufactures control and instrumentation wires and
cables for thermocouple, power, marine, and robotics applications.
The company was formerly known as Shaw Industries Ltd. and changed its
name to ShawCor Ltd. in May 2001.
ShawCor Ltd. was founded in 1954 and is headquartered in Toronto,
Canada.
Staff: 8,000
Operations & branches:
At above address, we find
the corporate office, factory and warehouse, owned.
The Company maintains
several branches in Canada, including:
1050, 202-6th Avenue S.W.
Calgary, Alberta T2P 2R9
1824 Crowchild Trail N.W.
Calgary, Alberta T2M 3Y7
185 Dorval Avenue
Dorval, Quebec H9S 5J9
and others.
Shareholders:
The Company is listed with the Toronto Stock Exchange under symbol SCL.
The major shareholder (+50%) is:
CDS & CO
28 The Esplanade, Toronto, Ontario M5W 1G4
Other shareholders
include:
SHAW HOLDING SARL
123 Av. De la Faiencerie, Luxembourg
SHAW INTERNATIONAL SARL
123 Av. Faiencerie, Luxembourg
Management:
John F. PETCH is the Chairman.
Stephen M. ORR is President and CEO
He has been the Chief Executive Officer and President of ShawCor Ltd.
since May 1, 2014 and September 3, 2013 respectively. Mr. Orr served a senior
executive position with a leading global energy services company.
He has more than 20 year career with ShawCor Ltd. and served in senior
roles in many locations throughout North America, Europe and the Asia Pacific
region. He has been a Director of ShawCor Ltd. since May 1, 2014.
Other Directors include Pamela S. PIERCE, Kevin J. FORBES,
Denis H. FREEMAN, Derek S. BLACKWOOD, Charlene VALIQUETTE, John T. BALDWIN,
James W. DERRICK, William
P. BUCKLEY, and Paul ROBINSON
Gary S. LOVE is the CFO.
Subsidiaries &
Partnership: Several worldwide
On January 5, 2015, ShawCor Ltd. announced today that it has completed
the acquisition of Dhatec B.V. for an undisclosed amount.
Dhatec is a Netherlands based company which designs, assembles and
markets engineered pipe logistics products and services which mitigate damage
and enhance safety and efficiency in the manufacturing, coating, handling,
transportation, preservation and storage of pipe.
Dhatec's estimated revenue in 2014 is approximately US$25 million.
On attachment:
- 10K 2013
- 2nd 10Q 2014
On November 6, 2014, ShawCor Ltd. reported unaudited consolidated
earnings results for the third quarter and nine months ended September 30,
2014.
For the quarter, the company’s revenue was CAD 469,597,000 against CAD
525,848,000 a year ago.
Income from operations was CAD 10,932,000 against CAD 104,877,000 a year
ago. Income before income taxes was CAD 9,046,000 against CAD 101,770,000 a
year ago. Net income for the period was CAD 6,345,000 or CAD 0.09 diluted per
share against CAD 72,384,000 or CAD 1.21 diluted per share a year ago. Cash
provided by operating activities was CAD 66,356,000 against CAD 5,474,000 a
year ago. Purchases of property, plant and equipment was CAD 21,988,000 against
CAD 19,224,000 a year ago. Purchases of intangible assets were CAD 32,000
against CAD 450,000 a year ago. Adjusted EBITDA in the third quarter of 2014
was CAD 71.3 million, a decrease of CAD 57.0 million, or 44%, from the third quarter
of 2013. The decrease in operating income was due to lower gross profit of CAD
2.2 million as a result of a 6.9 percentage point decrease in gross margin,
primarily due to more unfavourable product mix, partially offset by a reduction
in SG&A expenses of CAD 1.2 million and the increase in revenue. The
increase in revenue was driven by higher heat shrink tubing product volumes,
particularly in the automotive sector, combined with higher shipments of wire
and cable products to the North American electrical utilities and the impact of
foreign exchange on revenue
For the nine months, the company’s revenue was CAD 1,390,065,000
compared to CAD 1,437,790,000 a year ago. Income from operations was CAD
169,544,000 against CAD 272,538,000 a year ago.
Income before income taxes was CAD 158,958,000 against CAD 264,556,000 a
year ago. Net income for the period was CAD 115,695,000 or CAD 1.90 diluted per
share against CAD 196,432,000 or CAD 3.11 diluted per share a year ago. Cash
provided by operating activities was CAD 97,060,000 against CAD 7,313,000 a
year ago. Purchases of property, plant and equipment was CAD 54,743,000 against
CAD 57,471,000 a year ago. Purchases of intangible assets was CAD 90,000
against CAD 522,000 a year ago. The increase in revenue is due to increased
shipments of wire and cable products to the North American electrical
utilities, combined with increased heat shrinkable product shipments in all
three regions and the impact of foreign exchange on revenue. The increase in
operating income was primarily due to SG&A expenses were lower by CAD 2.1
million in 2014 compared to 2013. The company reported impairment charges of
CAD 41.4 million in the third quarter of 2014.
Banks: Royal Bank of Canada
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: None
National Credit Bureaus
gave a satisfying credit rating.
According to our credit analysts, during the last 6 months, payments of
imports were currently made on terms.
The Company is developing a
strong business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.39 |
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1 |
Rs.96.84 |
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Euro |
1 |
Rs.75.67 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ANK |
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 |
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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.