MIRA INFORM REPORT

Report No. :	314558
Report Date :	28.03.2015

IDENTIFICATION DETAILS

Name :	DLS ARGENTINA LIMITED SUCURSAL ARGENTINA
Registered Office :	Div. Rec. Grandes Contrib. Nacionales, Hipolito Yrigoyen N°370 Planta Baja, 1086 Ciudad Autonoma Buenos Aires
Country :	Argentina
Date of Incorporation :	25.07.1990
Legal Form :	Limited
Line of Business :	Installation, Repair and Removal of Oil and Gas Wells
No. of Employees :	2.930

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Argentina	B1	C1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

ARGENTINA - ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club.

Source : CIA

STATUTORY INFORMATION
Legal Name:	DLS ARGENTINA LIMITED SUCURSAL ARGENTINA
Trade Name:	DLS ARGENTINA LIMITED
CUIT:	30-64074560-2
Date Created:	1990
Date Incorporated:	25/07/1990
Legal Address:	Div. Rec. Grandes Contrib. Nacionales Hipolito Yrigoyen N°370 Planta Baja 1086 Ciudad Autonoma Buenos Aires
Operative Address:	Bouchard Av. 557 Piso:22 - Esquina : Tucumán 1106-Ciudad Autonoma Buenos Aires
Telephone:	54 11 5129 2900
Fax:	54 11 5129 2949
Legal Form:	Limited
Email:	info@dls-argentina.com.ar
Registered in:	Argentina
Website:	www.dls-argentina.com.ar
Contact:	Carlos Etcheverry, President
Staff:	2.930
Activity:	Installation, repair and removal of oil and gas wells
BANKS	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN THOUSANDS AR$
BANCO ITAU ARGENTINA S.A.	112131,4
BBVA BANCO FRANCES S.A.	99308
CITIBANK N.A.	59506
BANCO PATAGONIA S.A.	30188,8
BANCO COMAFI SOCIEDAD ANONIMA	30134,3
BANCO DE GALICIA Y BUENOS AIRES S.A.	1663,2
AMERICAN EXPRESS ARGENTINA S.A.	778
HSBC BANK ARGENTINA S.A.	92,9
	According to the classification of banking relations of Argentina, the company operates with the following level: 1.
	This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.
	There are no rejected checks for the company.
HISTORY	DLS ARGENTINA LTD is a company established in Argentina in 1990, subsidiary company of Allis-Chalmers Energy, Inc.
PRINCIPAL ACTIVITY	It is dedicated to the installation, repair and removal of oil and gas wells. In addition, they were the first company to operate offshore on the Argentine Continental Platform, drilling with semi-submersible platforms and jack-up rigs on the Colorado, San Jorge Gulf and Marina Austral basins.
Products/Services description:	DRILLING WORKOVER PULLING SPECIAL OPERATIONS OPERATION AND MAINTENANCE OF OIL AND GAS FIELDS
Brands:	The company has no brands
Sales are:	Wholesale
Clients:	ADVANTAGE RESOURCES ALBERTA ENERGY ALIANZA PETROLERA ARGENTINA AMOCO APACHE APCO BARRANCA SUR BRIDAS BRITISH PRETOLEUM BUTTES CAPEX CIA GRAL DE COMBUSTIBLES CLEAR CODELCO COLHUE HUAPI CHACO CHEVRON SAN JORGE DONG WON EXXON EPP MEXUS MOBIL MONUMENT NECOM NORCEN OEA OCCIDENTAL OILGENER PAN AMERICAN ENERGY PECTEN PEREZ COMPANC PETROBRAS
Suppliers:	n/a
Operations area:	National and International
The company imports from	n/a
The company exports to	Bolivia
The subject employs	2.930 employees
Payments:	Regular
LOCATION
Headquarters :	BOUCHARD AV. 557 Piso:22 - ESQUINA : TUCUMÁN 1106-CIUDAD AUTONOMA BUENOS AIRES
Branches:	COMODORO RIVADAVIA NEUQUEN TARTAGLA RIO GRANDE BOLIVIA
Industry:	Companies in this industry construct nonresidential buildings and structures such as highways and dams. Demand depends heavily on the health of the economy, including corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Large companies have advantages in their ability to engage in multiple projects simultaneously and in many types of construction. Small companies can compete effectively by specializing, working in a limited geography, or serving as subcontractors on larger projects. The industry is highly fragmented. Commercial and institutional building construction accounts for more than 55 percent of industry revenue, heavy and civil engineering construction for 40 percent, and industrial building construction for less than 5 percent.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	N/A
Shareholders %:	DLS Argentina Limited is a subsidiary of: Allis-Chalmers Energy, Inc. 11125 Equity Drive Suite 200 Houston, TX 77041 United States
Management:	Emilio Raimondi, Commercial Manager Elena Rébolo Blanco, Administrative Manager Victoria Zelasco, Finance Manager Giovanni Dell'Orto, Attorney Carlos Fulvio Etcheverry, Attorney Carlos Etcheverry, President
Related Companies:	DLS Argentina Limited is a subsidiary of Allis-Chalmers Energy, Inc.
FINANCIAL INFORMATION
	This is a private company which does not make its financial statements public. The following data has been provided by outside sources.
2013 AR$
Revenue	428 964 000
Net Income	(830 000)
Total Equity	76 845 300
Cash Flow	Good
EXPORTS FOB DOLLAR
2013	1.000.525
2012	992.968
2011	1.220.402
2010	1.321.630
LEGAL FILINGS
	There are no legal connected to the subject
SUMMARY	DLS ARGENTINA LTD is a company stablished in Argentina in 1990, subsidiary company of Allis-Chalmers Energy, Inc. It is dedicated to the installation, repair and removal of oil and gas wells. There are no negative. The company's debt is high, but maintains regular payment with the national banks and its revenue is also high. However, its net income is negative.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
STATUS	Active
ENTERVIEW
NAME	Julieta
POSITION	Administrative
COMMENTS	She confirmed managers, staff and activity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.61
UK Pound	1	Rs.92.95
Euro	1	Rs.68.15

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.