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MIRA INFORM REPORT
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Report No. : |
485262 |
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Report Date : |
15.01.2018 |
IDENTIFICATION DETAILS
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Name : |
DANGOTE OIL REFINING COMPANY LIMITED |
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Registered Office : |
Union Marble Hosue, 1 Alfred Rewane Road, Falomo, Lkoyi, Lagos, PMB 40032, Falomo Ikoyi, Lagos |
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Country : |
Nigeria |
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Financials (as on) : |
31.12.2016 [Consolidated] |
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Date of Incorporation : |
19.05.1981 |
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Com. Reg. No.: |
15545 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Oil refining company |
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No. of Employees : |
310 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Nigeria |
B2 |
B2 |
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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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
NIGERIA - ECONOMIC OVERVIEW
Nigeria is one of Sub Saharan Africa’s largest economies and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Following the 2008-09 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Since then, Nigeria’s economic growth has been driven by growth in agriculture, telecommunications, and services. Economic diversification and strong growth have not translated into a significant decline in poverty levels; however, over 62% of Nigeria's 170 million people still live in extreme poverty.
Despite its strong fundamentals, oil-rich Nigeria has been hobbled by inadequate power supply, lack of infrastructure, delays in the passage of legislative reforms, an inefficient property registration system, restrictive trade policies, an inconsistent regulatory environment, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, insecurity, and pervasive corruption. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria's oil production has contracted every year since 2012.
President BUHARI, elected in March 2015, has established a cabinet of economic ministers that includes several technocrats, and he has announced plans to increase transparency, diversify the economy away from oil, and improve fiscal management, but his reliance on the Central Bank governor has led to overwhelmingly protectionist policies aimed at defending the naira from further devaluation. President BUHARI ran on an anti-corruption platform, and has made some headway in alleviating corruption, such as an implementation of a Treasury Single Account that allows the government to better manage its resources. The government also is working to develop stronger public-private partnerships for roads, agriculture, and power.
Partly because of lower oil prices, Nigeria entered a recession in 2016. However, the medium-term
outlook for Nigeria is positive, assuming oil output stabilizes and oil prices
recover.
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Source
: CIA |
SUBJECT'S
NAME
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Registered Name: |
DANGOTE OIL
REFINING COMPANY LIMITED |
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Requested Name: |
DANGOTE OIL REFINING COMPANY LIMITED |
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Other Names: |
None |
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ADDRESS
AND TELECOMMUNICATION
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Physical Address: |
Union
Marble Hosue, 1 Alfred Rewane Road, Falomo, Lkoyi, Lagos |
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Postal Address: |
PMB 40032,Falomo Ikoyi, |
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Lagos, |
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Country: |
Nigeria |
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Phone: |
234-1-2695108/2695109/4480815 |
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Fax: |
234-1-2702893/2712231 |
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Email: |
carl.franklin@dangote.com |
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Website: |
www.dangote.com |
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CREDIT
OPINION
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Financial Index as of December
2017 shows subject firm with a medium risk of credit. However, bank and
credit information obtained reveal a history of prompt payments. |
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LEGAL
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Legal Form: |
Limited Corporation |
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Date Incorporated: |
19-May-1981 |
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Reg. Number: |
15545 |
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Nominal Capital |
NGN.
1,000,000,000 |
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Subscribed Capital |
NGN.
1,000,000,000 |
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Subscribed Capital is Subscribed in the following form: |
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Position |
Shares |
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Alhaji Aliko Dangote |
Chairman |
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Sani Dangote |
Vice President |
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Olakunle Alake |
Chief Operating Officer |
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Alhaji Tajudeen
Sijuade |
Finance Director |
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Abdu Dantata |
Director |
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KKnut Ulvmoen |
Director |
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M. Sada Ladan Baki |
Director |
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Devakumar V. G.
Edwin |
Director |
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Joseph Makoju, |
Director |
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Usen Udoh |
Director |
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Kuzhyil Ravindran |
Director |
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Carl Franklin |
Director |
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Dangote Group |
Holding Co. |
100% |
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RELATED
COMPANIES
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Dangote Group |
Parent company. |
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None |
Subsidiary company. |
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DANGOTE BAIL LIMITED DANGOTE GLOBAL SERVICES
LIMITED DANGOTE FLOUR MILLS PLC
rc 501757 DANGOTE SUGAR Refinery
PLC NATIONAL SALT COMPANY OF
NIGERIA DANGOTE CEMENT PLC DANGOTE FOUNDATION |
Affiliated companies. |
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None |
Shareholder of subject
firm. |
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None |
Branches of the firm |
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OPERATIONS
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Registered to operate as
an oil refining company |
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Imports: |
Asia, Europe |
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Exports: |
Worldwide |
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Trademarks: |
None |
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Terms of sale: |
Cash (40%) and 25-90 days (60%), invoices. |
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Main Customers: |
Industries, firms and organizations |
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Employees: |
310 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Nigeria |
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Location: |
Leased premises, 100,000 square feet, |
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AUDITORS
AND INSURANCE
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Auditors: |
Akintola Williams
Deloitte |
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Insurance Brokers: |
Information not
available. |
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FINANCE
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Currency Reported: |
Nigerian Naira (NGN.) |
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Fiscal Year End: |
December 31, 2017 |
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2017 was of 13%. |
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Financial Information
Submitted Below |
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BANK
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Bank Name: |
ACCESS
BANK PLC |
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Branch: |
Nigeria |
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Comments: |
Other Banks |
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DIAMOND BANK PLC |
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FIDELITY BANK PLC |
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TRADE REFERENCES
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Experiences: |
Good |
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NOTARIAL BONDS |
None |
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COMMENTS
/ ADDITIONAL INFORMATION
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This information was
obtained from outside sources other than the subject company itself and
confirmed the above subject. |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.53 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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NGN |
1 |
INR 0.18 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.