|
Report No. : |
323188 |
|
Report Date : |
25.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
P.T. BP PETROCHEMICALS
INDONESIA |
|
|
|
|
Registered Office : |
Sumitmas II Building, 18th Floor, Jalan Jend. Sudirman Kav. 61 – 62, Jakarta Selatan, 12190 |
|
|
|
|
Country : |
Indonesia
|
|
|
|
|
Date of Incorporation : |
28.02.2014 |
|
|
|
|
Com. Reg. No.: |
AHU-09558.AH.01.02.TH.2014 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Purified
Terepthalate Acid (PTA) Industry |
|
|
|
|
No. of Employees : |
305 |
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 : |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Indonesia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, has grown strongly since
2010. During the global financial crisis, Indonesia outperformed its regional
neighbors and joined China and India as the only G20 members posting growth.
The government has promoted fiscally conservative policies, resulting in a
debt-to-GDP ratio of less than 25% and historically low rates of inflation.
Fitch and Moody's upgraded Indonesia's credit rating to investment grade in
December 2011. Indonesia still struggles with poverty and unemployment,
inadequate infrastructure, corruption, a complex regulatory environment, and
unequal resource distribution among regions. President Joko WIDODO - elected in
July 2014 - has emphasized domestic economic growth in his first few months in
office and in November 2014 reduced fuel subsidies, a move which could help the
government increase spending on its development priorities. Indonesia, with the
nine other ASEAN members, will form the ASEAN Economic Community in 2015.
|
Source
: CIA |
BASIC SEARCH
|
Name
of Company :
P.T.
BP PETROCHEMICALS INDONESIA
A
d d r e s s :
Head Office
Sumitmas
II Building, 18th Floor
Jalan
Jend. Sudirman Kav. 61 – 62
Jakarta
Selatan, 12190
Indonesia
Phones -
(62-21) 252 6854 (Hunting)
Fax - (62-21) 2526856
Building Area - 18 storey
Office Space - 100 sq. meters
Region - Commercial
Status - Rent
Factory
Complex
PENI
Jalan
Raya Merak Km. 116
Desa
Rawa Arum, Kecamatan Tanjung Gerem
Cilegon,
42436
Banten
Province
Indonesia
Phones -
(62-254) 570 777 (Hunting)
Fax -
(62-254) 570 755
E-mail - ahmadb@ami.co.id
Land Area - 160,000 sq.
meters
Building Space - 78,000 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
a. 7 November 1994 as P.T. AMOCO MITSUI PTA
INDONESIA
b. 28 February 2014 as P.T. BP PETROCHEMICALS
INDONESIA
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Ministry of Law and Human Rights
- No. AHU-68096.AH.01.02.TH.2008
Dated 23 September 2008
- No. AHU-09558.AH.01.02.TH.2014
Dated 4 March 2014
Company
Status :
Foreign
Investment (PMA) Company
Permit
by the Government Department :
The Department of Finance
NPWP
No. 01.070.909.5-052.000
The President of the Republic of
Indonesia
No.
B-101/Pres/07/1994
Dated
19 July 1994
The Capital Investment Coordinating
Board
- No. 233/I/PMA/1994
Dated 8 August 1994
- No. 98/III/PMA/1995
Dated 21 March 1995
- No. 551/III/PMA/1997
Dated 6 May 1997
- No. 92/II/PMA/2003
Dated 30 April 2003
- No. 388/1/IP/PB/PMA/2014
Dated 20 February 2014
The Department of Industry
No.
421/T/Industri/1998
Dated
1 September 1998
Related
Companies :
a. BP AMOCO CHEMICAL INDONESIA LTD. (Investment
Holding)
b. BP GLOBAL INVESTMENTS LTD. (Investment
Holding)
b. BP INDONESIA (Oil and Gas Exploration and
Production)
c. P.T. CASTROL INDONESIA (Lubricant Oil
Blending)
d. VICO INDONESIA (Oil and Gas Exploration and
Production)
CAPITAL
AND OWNERSHIP
|
Capital
Structure :
Authorized
Capital : US$
160,000,000.-
Issued
Capital :
US$ 160,000,000.-
Paid
up Capital :
US$ 160,000,000.-
Shareholders/Owners
:
a. BP AMOCO CHEMICAL INDONESIA LTD. - US$ 80,000,000.-
Address : 01 Westlake Park Boulevard
Houston, Texas 77079, USA
b. BP GLOBAL INVESTMENTS LTD. - US$
80,000,000.-
Address :
01 Westlake Park Boulevard
Houston, Texas 77079, USA
BUSINESS ACTIVITIES
|
Lines of Business :
Purified Terepthalate
Acid (PTA) Industry
Production Capacity :
Purified Terepthalate
Acid (PTA) - 530,000 tons p.a.
Total Investment :
a. Equity Capital - US$ 160.0 million
b. Loan Capital - US$ 275.0 million
c. Total Investment - US$ 435.0 million
Started Operation :
September 1997
Brand Name :
BP Petrochemicals
Technical Assistance
:
BP, USA
Number of Employee :
305 persons
Marketing Area :
Local - 90%
Export - 10%
Main Customer :
Textile industries
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ASIA PACIFIC FIBERS
Tbk
b. P.T. INDORAMA
PETROCHEMICALS
c. P.T. MITSUBISHI
CHEMICAL INDONESIA
d. P.T. PERTAMINA
(Persero)
e. Etc.
Business Trend :
Growing
BANKER, AUDITOR & LITIGATION
|
B
a n k e r s :
a. The JP MORGAN CHASE Bank
Plaza Chase
Jalan Jend. Sudirman Kav. 21
Jakarta Selatan
Indonesia
b. Bank of AMERICA
Wisma Antara
Jalan Merdeka Selatan No. 17
Jakarta Pusat
Indonesia
c. CITIBANK N.A.
Plaza Citibank Bapindo Office Tower
Jalan Jend. Sudirman Kav. 54-55
Jakarta Selatan
Indonesia
Auditor
:
Internal
Auditor
Litigation
:
No
litigation record in our database
FINANCIAL FIGURE
|
Annual
Sales (estimated) :
2012
– US$ 590.0 million
2013
– US$ 604.0 million
2014
– US$ 618.0 million
Net
Profit (estimated) :
2012
– US$ 41.3 million
2013
– US$ 42.3 million
2014
– US$ 44.5 million
Payment
Manner :
Average
Financial
Comments :
Satisfactory
KEY EXECUTIVES
|
Board of Management :
President Director - DR. Frank Charles Robertson
Directors -
a. Mrs. Wong Wai Yee
b. Mr. Sean Zahid Plant
Board of Commissioners :
President Commissioner - Mr. Mark Ian Ranson Wilson
Commissioner - Mr. Dharmawan Hendradjaja Samsu
Signatories :
President
Director (DR. Frank Charles Robertson) or one of the Directors (Mrs. Wong Wai
Yee or Mr. Sean Zahid Plant) which must be approved by Board of Commissioner
CAPABILITIES
|
Management Capability :
Good
Business Morality :
Good
OVERALL PERFORMANCE
|
Originally the company named P.T. AMOCO MITSUI PTA
INDONESIA was established in Jakarta on 7 November 1994 with an authorized
capital of US$ 125,000,000 entirely issued and paid-up. The founding
shareholders originally are BP AMOCO CHEMICAL INDONESIA Ltd., of the USA,
MITSUI CHEMICAL INC., and MITSUI & Co., Ltd., both of Japan. The company's
notarial act has frequently been revised. Then in November 1997 the authorized
capital was raised to US$ 160,000,000 entirely issued and paid up. Later
according to the latest revision of notary deed Mr. Mala Mukti, SH., no. 76
dated 28 February 2014 the company name was changed into P.T. BP PETROCHEMICALS
INDONESIA (P.T. BPI). On the same occasion MITSUI CHEMICALS INC., and MITSUI
& CO, LTD., of Japan pulled out and the whole shares taken over by BP AMOCO
CHEMICAL INDONESIA LTD. Concurrently BP GLOBAL INVESTMENTS LTD., of the USA
entered into the company as new shareholder. With this time the composition of
its shareholders has been changed to become BP AMOCO CHEMICAL INDONESIA LTD.,
(50%) and BP GLOBAL INVESTMENTS LTD., (50%). The deed of amendments was
approved by the Ministry of Law and Human Rights in its decision letter No.
AHU-09558.AH.01.02.TH.2014 dated March 4, 2014.
P.T. BPI is a Foreign Capital Investment (PMA) company
dealing with Purified Terepthalic Acid (PTA) manufacturing with its plant
located at PENI complex, Jalan Raya Merak Km. 116, Tanjung Gerem, Cilegon,
Banten Province standing on a land bank of 160,000 sq. meters. Before 1997,
most demands of PTA in Indonesia were met through import. But since 1997, the
demands have been met by domestic factories. In order to support the growth of
domestic textile industries, BP plc, Mitsui Chemical Inc., and Mitsui &
Co., Ltd, very well known as the three leading companies in their fields,
formed a joint venture by the name of P.T. BP Petrochemicals Indonesia. The
construction work of the plant was begun in May 1995 in Merak city, Banten, and
completed in July 1997. The company started its production in September 1997
and factory adapts technology from BP and Mitsui Chemicals.
Later the company had been expanding to increasing
production capacity. P.T. BPI gains benefits from continuous development in PTA
production technology carried out by BP and Mitsui Chemicals. This development
of technology enables P.T. BPI to produce high quality PTA efficiently and
effectively. The company had increased its production amounts from the
installed capacity of 350,000 tons to 530,000 tons of PTA per year in 2006. PTA
(purified Terephtalic Acid) is the preferred raw material used to produce
Polyethylene Terephthalate (PET) or polyester. The major applications for
polyester are in fiber, bottles, films and molded containers. In the textile
industry, polyester, alone or in a blend with cotton, wool or other synthetic
fiber, is used in fabrics for clothing and home furnishings. For industrial
markets, woven polyester fibers are used in automotive tire cord and seat belt
application. Polyester resins are also widely used in molded containers for
food, beverages and mineral water. Additionally, polyester films is used as a
recording medium for audio and video tapes and as film in medical X-ray
equipment.
In early 2014 BP agreed to purchase all interests held by
Japan’s Mitsui Chemicals, Inc. (MCI) and Mitsui & Co. Ltd. (MBK) in P.T.
Amoco Mitsui PTA Indonesia (AMI), a joint venture for production and sales of
purified terephthalic acid (PTA), bringing total BP shares in the company to
100%. The new company, P.T. BP Petrochemicals Indonesia produces 530,000 tons a
year of PTA, a raw material for polyester which is used in clothing, food and
drink packaging and certain industrial applications. BP’s global PTA capacity
is 7.1 million tonnes per year (mtpa) (net) from seven sites in the US (2),
Belgium, China, Indonesia, and Taiwan (2). The largest is in China at Zhuhai,
where expansion of net capacity of 1.5 mtpa is expected to add 1.25 mtpa by
2014, making it one of the world’s largest PTA manufacturing sites.
More than 90% of
its products is marketed domestically to various PTA
consumer industries operating in
the manufacturing of polyester fiber, film and plastic products and the balance is exported to
India, Thailand, Malaysia, etc. The company operation has kept on growing within
the last five years. It is also experienced by its main customers particularly
the companies dealing with polyester fiber, polyethylene terephthalate (PET)
resin, polyester, tyre cord etc. We observe the operation of P.T. BPI has been
growing and developing well in the last three years.
Year 2013 was a very challenging for the trade and
business in general and for Polyester sector in particular where it undergone
very turbulent period. The Global economic slowdown had an impending and
prolonged impact on the demand that has been further exacerbated by the
excessive supply due to over capacity of PTA, Polyester Fiber and Filament yarn
in Asia, mainly led by China. This has triggered a global down-cycle in the
polyester chain, which has been lasting for an abnormally longer period and
where many of the Asian and Global manufacturers suffered considerably. The
product spreads across the polyester value chain continued to remain depressed
due to stiff competition and the softening trend in cotton and Rayon prices
during the year.
Polyester and Raw material chain apparently reflect the
current uncertainty and slow down of the global economy and the overall growth
of polyester production has slowed down in the past two years 2012 and 2013.
With the effective capacity of about 17 million tons added in the last two
years, PTA operating dropped to 76% in 2013 from 90.2% and likely to fall below
74% in 2014 with rationalization of the regional capacities. Polyester polymer
production reaching 61.68 million tons, a growth of 3.2 million tons or 5.5% in
the year 2013, marginally improved from4.6% in 2012 as the global economy
recovered in the second half of 2013. Longer-term growth rates are trending
better with over 6% look impressive compared with other major petrochemical
related business sectors.
Global economy is expected to grow by 3.7% in 2014 and
3.9% in 2015, primarily due to recovery in advanced economies and the emerging
economies to expand by 5.10% and 5.4% respectively. Indonesian economy is
projected to grow moderately at 5.3% - 5.5% in 2014 and 2015 and the growth
will be primarily driven by strong domestic consumptions and modest increase in
exports to its major trading partners. The Indonesian rupiah (IDR) is likely to
remain under pressure in early 2014 amid uncertainty over the election results
and U.S. Fed tapering. Domestic environment for manufacturing sectors expect to
pass through a tough phase with the proposed hike in energy and manpower costs.
Both Gas prices and Electricity tariff are slated for a significant
Increase in 2014 putting pressure on cost competitiveness
of the domestic manufacturers.
Industry is taking up the matter with the ministry for
phasing out the hike over a period of time instead at one go. With regard to polyester
upstream sector, with the additional capacity of Fiber and Filament yarn going
on stream, domestic market is expected to face a stiff price competition for
commodity products. However, the Company with its strong customer base and with
a diversified product mix is firmly placed to remain competitive and maintain
its leadership position. The delay in finding a solution to its long pending
secured debt restructuring continues to remain a setback to carry out its
growth plans. To expedite the process, the Company has recently submitted an
updated restructuring plan with alternate option to its secured creditors that
are under active consideration. Post restructure, the Company will have a sound
and healthy financial base with its debts brought down to sustainable levels.
This would in turn enable the company to raise finance from market to meet its
short and long terms investments to fund its growth plans. All of these efforts
will improve the performance of the Company significantly, and to reposition it
to the forefront of the polyester industry and retain its strategic and
leadership position.
Until this time P.T. BPI has not been registered with
Indonesian Stock Exchange, so that they had not obliged to announce their
financial statement. The management of P.T. BPI is very reclusive towards
outsiders and rejected to disclose its financial condition. We observed that
total sales turnover of the company in 2012 amounted to US$ 590.0 million
increased to US$ 604.0 million in 2013 rose to US$ 618.0 million in 2014 and
projected to go on rising by at least 6% in 2015. The operation in 2014 yielded
an estimated net profit of at least US$ 44.5 million and the company has an
estimated total networth of at least 170.0 million. We observe that P.T. BPI is
supported by foreign partner with has financially strong and sound behind it.
So far, we did not heard that the company having been black listed by the
Central Bank (Bank Indonesia). The company usually pays its debts punctually to
suppliers.
The management of P.T. BPI is led by DR. Frank Charles
Robertson (60) a professional manager of Scotland with experience in purified
terepthalate acid industry. Daily activity he is assisted by Mrs. Wong Wai Yee
(56) and Mr. Sean Zahid Plant (46) as Directors. The company's management is
handled by professional staff in the above business. They have wide relations
with private businessmen within and outside the country.
So far, we did not hear that the management of the
company being filed to the district court for detrimental cases or involved in
any business malpractices. The company’s litigation record is clean and it has
not registered with the black list of Bank of Indonesia. P.T. BP PETROCHEMICALS
INDONESIA is sufficiently fairly good for business transaction. However, in
view of the global economic slowdown we recommend to treat prudently in
extending a loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
|
|
1 |
Rs.99.67 |
|
Euro |
1 |
Rs.70.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.