MIRA INFORM REPORT

 

 

Report No. :

305167

Report Date :

29.01.2015

 

IDENTIFICATION DETAILS

 

Name :

DUBAI DRY DOCKS

 

 

Registered Office :

Al Mina Street, Deira, P O Box: 8988, Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

03.01.1983

 

 

Legal Form :

Government Corporation

 

 

Line of Business :

Subject is engaged in ship and vessel repairing, dry dock operations and ship parts manufacturing.

 

 

No. of Employees :

10,000

 

 

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 :

Good 

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, 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. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. 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 diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

 

Source : CIA

 

SUMMARY

 

Company Name                                    : DUBAI DRY DOCKS

Also Known As                                     : DRY DOCKS WORLD DUBAI

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Government Corporation

Registration Date                                  : 3rd January 1983

Chamber Membership Number               : 20

Issued Capital                                       : UAE Dh 20,000,000

Paid up Capital                                     : UAE Dh 20,000,000

Total Workforce                                     : 10,000

Activities                                               : Ship and vessel repairing, dry dock operations and ship parts   manufacturing

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

 


COMPANY NAME

 

DUBAI DRY DOCKS

 

 

ALSO KNOWN AS

 

DRY DOCKS WORLD DUBAI

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Mina Street

Area                 : Deira

 

PO Box            : 8988

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 3450626

Facsimile          : (971-4) 3450116

Email                : drydocks@drydocks.gov.ae / drydocks@emirates.net.ae

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Al Jadaf North Area                                                                          Ship repair facilities

Dubai

     Tel: (971-4) 3450193

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Khamis Juma Buamim                                                                      Chairman

 

·       Ali Al Suwaidi                                                                                   Vice President

 

·       Dr Markus Johannes Voege                                                              Vice President

 

·       Adel Al Wahedi                                                                                 Chief Financial Officer

 

·       Nagraj Rao                                                                                       Finance Manager

 

·       Laksmi Janarthanan                                                                          Commercial Manager

 

·       Zeheer Kavarana                                                                               Operations Manager

 

·       Hashim Gardezi                                                                                Engineering Manager

 

·       David Galea                                                                                     Legal Manager

 

·       Shachindra Nath Saxena                                                                   Production Manager

 

·       Ibrahim Ali Al Ali                                                                               IT Manager

 

·       Sumaya Tahlak                                                                                 Communications Manager

 

·       A B Subiah                                                                                       Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 3rd January 1983 (by Ruler’s Decree No. 0003)

 

Legal Form                  : Government Corporation

 

Membership No.           : 20

 

Issued Capital              : UAE Dh 20,000,000

 

Paid up Capital            : UAE Dh 20,000,000

 

Name of Shareholder (s)                                              Percentage

 

·       Government of Dubai                                                   100%

 

 

OPERATIONS

 

Activities: Engaged in ship and vessel repairing, dry dock operations and ship parts manufacturing. Subject’s

     services include the following :

 

                        -  Conversions

                        -  New Buildings

                        -  Mechanical

                        -  Steelwork

                        -  Pipe work

                        -  Electrical

                        -  Tank Cleaning

                        -  Stocks & Stores

                        -  Hull and tank coating

                        -  Rigging

                        -  Offshore oil industry services

                        -  Galvanising plant

                        -  Blasting facility

                        -  Computer network

 

The facility was built by Costain International Ltd and Taylor Woodrow International Ltd at a cost of US$ 460 million, and comprises 3 dry docks, 8 wet repair berths, a finger pier and a tank cleaning berth. The total area of the yard is 200 hectares with direct access to the sea through a 350 metre wide entrance.

 

Any existing size and type of commercial vessel can be accommodated in one of the following docks :

 

Dock 1  366 by 66 metres, with a capacity of handling vessels with up to 350,000 DWT

Dock 2  521 by 100 metres, with a capacity of handling vessels with up to 1,000,000 DWT

Dock 3  411 by 80 metres, with a capacity of handling vessels with up to 500,000 DWT

Floating Dock : 205 metres by 32 metres

 

The repair yard features the world’s first 1 million tonne capacity dock which was inaugurated by HM Queen Elizabeth II of Britain and HRH Sheikh Rashid Bin Said Al Maktoum, Ruler of Dubai.

 

Completed Contracts

 

In November 1997, Dubai Dry Docks was awarded a contract for work on the pipe laying barge, the “DLB Castoro II”. The work included the refurbishment of the accommodation facilities and an increase in their capacity, as well as the design and installation of a complete new fire detection system. Work was completed on 31st March 1998.

 

In July 1997, subject signed a contract with the Dubai Ports Authority for the construction of a harbour tug, named the “Al Wasl”. Delivery was made in April 1998.

 

In May 2001, work was finished on the “Safaniyah” and “Ramlah”, on behalf of Mid East Shipmanagment.

 

Dubai Drydocks successfully completed and delivered a Floating Drydock to Saudi Aramco on 26th October 2003.

 

Subject has completed the conversion of a second Floating Production Storage and Offloading Unit (FPSO). FPSO 'Mystras', measuring 271x55x23 metres with a deadweight of 143,000 tonnes, has a production capacity of 80,000 barrels per day and a storage capacity of 1.1 million barrels. This conversion will extend the life of the vessel by a further 10 years. The vessel was named by the First Lady of Nigeria at a ceremony at Dubai Drydocks in October 2003. FPSO "Mystras" is scheduled to operate offshore Nigeria for AGIP Nigeria. The sixteen-month conversion project was carried out entirely in Dubai and involved extensive amounts of steel, pipe, electrical, mechanical, painting and accommodation work.

 

Since starting operations in 1983 the shipyard has repaired over 6,600 vessels.

 

In 2007 the subject was awarded the “Shipyard of the Year” award.

 

In 2010, despite adverse market conditions, a total of 283 vessels were repaired by the Dubai based shipyard. The shipyard had invested in a new highly advanced 320 sq.m. cryogenic facility recently to address the specialized and sophisticated repair needs of gas carriers. The year saw an increase in the number of gas carriers repaired, which included 10 LPG vessels and 23 LNG vessels belonging to oil and gas majors in the world.

 

Several of the LNGs vessels repaired were of the large Q-Max and Q-Flex type. The year also major repair and modification carried out on 8 offshore drilling rigs. In addition, the shipyard completed 2 sophisticated  on version projects, 5 advanced new building projects and the shipyard’s Afloat Repair Division handled 194 projects.

 

Drydocks World – Dubai will manage the ship-lifts facility at Dubai Maritime City. The facility will address the repair needs of small to medium size vessel owners, widening the repair portfolio of the yard.
 
 The new facility will have 42 dry berths of 100 x 25 metres at Dock 1, two of them covered, and eleven dry berths of 150 x 35 metres at Dock 2 - one of them covered. The facility will be equipped with ship-lifts of 6,000 tonnes and 3,000 tonnes. A 700-tonnes travel lift will be available on site. The wet berths will extend over 1270 linear metres.

    

Drydocks World – Dubai is operating the ship lift facility at Jadaf near Dubai Creek. The yard has two ship lifts capable of lifting vessels up to 2500 tonnes.

 

On 14th April 2014, Drydocks World announced that it has signed an Agreement with Malta Oil & Gas Ltd for building two unique new jack-up drilling rigs based on Gusto MSC CJ54-X135-A design. The Agreement was signed by Khamis Juma Buamim, Chairman of Drydocks World & Maritime World and Mr Paul Robert Thomson of Malta Oil & Gas Ltd.

The Unit has dimensions of 76m x 76m and leg length 180.6m and is intended for operation in water depths up to 450 ft. It consists of a triangular shaped hull with three open truss legs, rack and pinion type elevating systems and leg-to-hull fixation systems. The rig will be capable of drilling HPHT (High Pressure High Temperature) wells. It is equipped with a permanent accommodation for 150 persons, a heli-deck suitable for the use of a S61N or S92 helicopter and a retractable X-Y type cantilever carrying the drilling derrick.

Drydocks World is undertaking a strategic development in its rig business from repair & refurbishment and rehabilitation to new building. The company is taking advantage of the presence of a highly-experienced management team and the ready availability of a strong dedicated engineering team to implement changes to original basic design, which holds the key to successful delivery. In addition, the Operational Excellence cycle is adhered to at all levels of production and the rig will be constructed in accordance to the cycle. The operation excellence initiative, which started with preliminary meetings involving clients has helped in understanding the rig’s operational requirements.

 

Operational Excellence introduced within the organization has changed the philosophy of leadership, and management of tasks at various levels resulting in continuous improvement throughout the organization by focusing on the needs of the customer and optimizing existing activities in the process. This approach has helped the shipyard achieve an incident-free workplace and safety milestones on all its key projects – 7.2 million (7,220,425) man hours without Lost Time injury has been achieved in the first quarter of 2014 – promote a healthy workforce, identify and mitigate environmental and safety risks, provide high quality and reliable services and optimize the efficient use of resources.  Constant and sustained efforts have been made to achieve and maintain a culture of excellence over time.

 

Drydocks World has processes based on industry best practices that lay out the requirements and procedures for meeting safety, health and environmental objectives.

 

The company has been doing pioneering work to introduce safer & greener environmentally friendly initiatives in all areas of the business. These initiatives have received widespread recognition & greatly enhanced the reputation of DDW as an organization that is environmentally responsible. Numerous clients have emulated the company’s practices in their businesses after having seen its success in these areas. Green technologies will be introduced wherever applicable to make the rig environment friendly. Drydocks World is committed to adding value to all its projects by incorporating new technologies, which will reduce operating cost and improve energy efficiency.

 

Worldwide Agents:

 

·       CET Werft-und Handelsvertretungen Grunewald GmbH & Co               Germany

·       Esma International BV                                                                       Netherlands

·       Calvey Marine Ltd                                                                             United Kingdom

·       Isletme Ltd (STL)                                                                              Turkey

·       Bonab Offshore Shipping                                                                 Iran

·       MIE Adridship                                                                                  France

·       Transma Ltd                                                                                     Hong Kong

·       SSRS Ltd                                                                                         Greece

·       B-I Industrial Co Ltd                                                                          Korea

·       Lachmann Agencies Maritimas SA                                                     Brazil

·       MIE Services Ltd                                                                              Cyprus

 

Import Countries: United States of America, Europe and Japan

 

Subject has a workforce of approximately 10,000 employees.

 

 

FINANCIAL DATA

 

No financial information was released by the subject and as a Government Corporation it is not required by law to make its accounts public.

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

     Acc No. 020181120-10

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222241

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               December 2011

Credit amount                                       125,000

Amount overdue                                    0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Euros

 

 

GENERAL COMMENTS

 

In 1971, His Highness Sheikh Rashid Bin Saeed Al Maktoum, commissioned a feasibility study for the construction of an ambitious ship repair facility. Today, Dubai Dry Docks has successfully established a prominent position amongst the world’s leading ship repair companies. This achievement is due to the importance attached to the maintenance of a superbly designed yard and the provision of the most modern equipment available. It enjoys full ISO 9002 Quality Management accreditation for its entire operations.

 

Since starting operations in 1983 the shipyard has repaired over 6,600 vessels of all types and sizes many of which are ULCC’s and VLCC’s representing a large proportion of the world’s tanker fleet. The total deadweight of the ship’s repaired is 260,000,000 tones and encompasses vessels from virtually every major owner and management company across the globe.

 

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.61.41

UK Pound

1

Rs.93.18

Euro

1

Rs.69.82

 

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%)

 

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.