MIRA INFORM REPORT
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Report No. : |
345999 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
COSMO OIL CO LTD |
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Registered Office : |
Hamamatsucho Bldg, 1-1-1 Shibaura Minatoku Tokyo 105-0023 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
September 1939 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in Oil refining |
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No. of Employees : |
6,357 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop an advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been impressive - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
Company
name
COSMO
OIL CO LTD
REGD
NAME
Cosmo Sekiyu KK
MAIN
OFFICE
Hamamatsucho Bldg, 1-1-1 Shibaura Minatoku
Tokyo 105-0023 JAPAN
Tel: 03-3798-3243 Fax: 03-3798-3237 -
URL: http://www.cosmo-oil.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Oil refining
BRANCHES
Osaka, Nagoya, Sapporo, Sendai,
other (Tot 27)
OVERSEAS
USA, China, other
FACTORIES
Chiba, Yokkaichi, Sakai (3
refineries)
CHIEF
EXEC
KEIZO MORIKAWA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 3,035,818 M
PAYMENTSREGULAR CAPITAL Yen
107,246 M
TREND UP WORTH Yen
207,520 M
STARTED 1939 EMPLOYES 6,357
COMMENT
OIL REFINER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/10/2016 fiscal term.
HIGHLIGHTS
This is a specialist oil refiner
on consignment basis, affiliated with Showa Shell Sekiyu. Delivers all of oil products to Showa Shell
Sekiyu. The company runs Chiba Plant
with the largest oil refining capabilities with 2 other petroleum refineries in
Sakai (Osaka-Pref) and Yokkaichi (Mie-Pref).
It has a pure-play petrochemical subsidiary, Maruzen Petrochemical. It engagers in upstream oil
production/development business by running 3 oilfields offshore Abu Dhabi
through a subsidiary jointly established with JX Group and other firms. AS IPP, supplies electricity to Tokyo
Electric Power. On 01/Oct/2015 the firm
formed a holding company of the Group firms, named Cosmo Energy Holdings Co Ltd.
Under the Holding Company, three firms exist as subsidiaries: Cosmo Oil
Co, Cosmo Energy Exploration & Production Co Ltd and Cosmo Oil Marketing Co
Ltd.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen
3,035,818 million, a 14.2% down from Yen 3,537,782 million in the previous
term. This is referred to a sharp drop
of oil prices, thereby inventory loss arose to Yen 110 billion. The operations plunged into the deficit to
post Yen 49,640 million recurring loss and Yen 77,729 net losses, respectively,
compared with Yen 41,847 million recurring profit and Yen 4,348 million net
profit, respectively, a year ago.
(Apr/Jun/2015 results): Sales Yen 595,382 million (down
20.0%), operating profit Yen 22,877 million (up 372.1%), recurring profit Yen
22,163 million (up 966.4%), net profit Yen 13,671 million (previously Yen 6,478
million loss). (% & figures as
compared with the corresponding period a year ago).
For the current term ending Mar 2016
the recurring profit is projected at Yen 49,000 million and the net profit at
Yen 21,000 million, respectively, on a 13.7% fall in turnover, to Yen 2,621,000
million. Earnings in upstream development
projects will deteriorate, hit by lower oil prices. But profit margin on oil business will
improve.
The financial situation is
considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Sept
1939
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized:
1,700 million shares
Issued: 847,705,087
shares
Sum: Yen
107,246 million
Major
shareholders (%): Infinity Alliance Ltd (20.7), Royal Bank of Canada T
(Cayman) (4.5), Japan Trustee Services T (4.4), Mizuho Bank (3.7), MUFG (2.3),
Kansai Electric Power (2.1), Mitsui Sumitomo Ins (2.0), Aioi Nissay Dowa Ins
(1.8), Sompo Japan Nipponkoa Ins (1.8), Customers’ S/Holding Assn (1.7);
foreign owners (34.5)
No. of
shareholders: 36,800
Listed on the S/Exchange (s) of: Tokyo
Managements:
Yaichi Kimura, ch; Keizo Morikawa, pres; Atsuhito Tamura, s/mgn dir; Hisashi
Kobayashi, s/mgn dir; Hiroshi Kiriyama, mgn dir; Katsiuhisa Ootaki, mgn dir;
Muneyuki Sano, mgn dir; yasushi OOe, mgn dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: Abu Dhabi Oil, Cosmo Oil Sales, Cosmo
Oil Gas, other.
OPERATION
Activities: Oil
refining: petroleum (97%), petrochemicals (1%), petroleum development (2%), others
(1%)
Overseas
Sales Ratio (12%)
Clients:
[Mfrs, wholesalers] JX Nippon Oil & Energy, Cosmo Oil Sales, Ministry of
Defense, Tokyo Electric Power, other
No. of accounts: 800
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] JX Nippon Oil
& Energy, Saudi Arabian Oil, Kuwait Petro- leum,
Qatar Petroleum, Mitsubishi Corp, other
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (H/O)
MUFG
(Tokyo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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3,035,818 |
3,537,782 |
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Cost of Sales |
2,944,919 |
3,369,007 |
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GROSS PROFIT |
90,899 |
168,775 |
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Selling & Adm Costs |
129,346 |
129,060 |
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OPERATING PROFIT |
-38,447 |
39,715 |
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Non-Operating P/L |
-11,193 |
2,132 |
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RECURRING PROFIT |
-49,640 |
41,847 |
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NET PROFIT |
-77,729 |
4,348 |
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BALANCE SHEET |
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Cash |
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95,171 |
140,423 |
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Receivables |
202,469 |
262,863 |
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Inventory |
256,789 |
446,437 |
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Securities, Marketable |
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Other Current Assets |
67,149 |
72,067 |
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TOTAL CURRENT ASSETS |
621,578 |
921,790 |
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Property & Equipment |
615,432 |
589,082 |
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Intangibles |
49,459 |
50,041 |
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Investments, Other Fixed Assets |
142,159 |
135,918 |
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TOTAL ASSETS |
1,428,628 |
1,696,831 |
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Payables |
182,417 |
255,521 |
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Short-Term Bank Loans |
179,512 |
323,705 |
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Other Current Liabs |
241,931 |
219,973 |
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TOTAL CURRENT LIABS |
603,860 |
799,199 |
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Debentures |
37,700 |
80,500 |
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Long-Term Bank Loans |
475,659 |
447,794 |
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Reserve for Retirement Allw |
8,833 |
12,993 |
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Other Debts |
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95,055 |
95,202 |
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TOTAL LIABILITIES |
1,221,107 |
1,435,688 |
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MINORITY INTERESTS |
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Common stock |
107,246 |
107,246 |
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Additional paid-in capital |
16,967 |
16,967 |
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Retained earnings |
7,942 |
87,461 |
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Evaluation p/l on
investments/securities |
5,505 |
2,887 |
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Others |
70,005 |
46,724 |
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Treasury stock, at cost |
(145) |
(143) |
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TOTAL S/HOLDERS` EQUITY |
207,520 |
261,142 |
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TOTAL EQUITIES |
1,428,628 |
1,696,831 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash Flows from Operating Activities |
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163,384 |
35,837 |
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Cash Flows from Investment
Activities |
-30,126 |
-61,007 |
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Cash Flows from Financing Activities |
-178,920 |
12,555 |
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Cash, Bank Deposits at the Term End |
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80,765 |
123,280 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net Worth (S/Holders' Equity) |
207,520 |
261,142 |
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Current Ratio (%) |
102.93 |
115.34 |
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Net Worth Ratio (%) |
14.53 |
15.39 |
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Recurring Profit Ratio (%) |
-1.64 |
1.18 |
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Net Profit Ratio (%) |
-2.56 |
0.12 |
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Return On Equity (%) |
-37.46 |
1.66 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 68.81 |
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1 |
Rs. 100.11 |
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Euro |
1 |
Rs. 73.74 |
INFORMATION DETAILS
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Analysis Done by
: |
KRN |
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Report Prepared
by : |
DPT |
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 |
-- |
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.