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MIRA INFORM REPORT
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Report No. : |
507049 |
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Report Date : |
02.05.2018 |
IDENTIFICATION DETAILS
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Name : |
OCTAL
SAOC FZC |
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Formerly Known As : |
OCTAL PETROCHEMICALS FZ LLC |
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Registered Office : |
Salalah Free Zone, Main Street, Auqad Area, PO Box -383, Salalah 217 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
22.11.2006 |
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Com. Reg. No.: |
1/00899/5 |
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Legal Form : |
Omani Closed Joint Stock Company |
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Line of Business : |
Subject engaged in the manufacture of PET & DPET resins |
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No. of Employees : |
250 |
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 : |
No Complaints |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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Oman |
A2 |
A2 |
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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 |
OMAN - ECONOMIC OVERVIEW
Oman is heavily dependent on its dwindling oil resources, which generate 84% of government revenue. In 2016, low global oil prices drove Oman’s budget deficit to $11.5 billion, or approximately 19% of GDP, but the budget deficit was reduced to 13% of GDP in 2017 as Oman reduced government subsidies. Oman has limited foreign assets and is issuing debt to cover its deficit.
Oman is using enhanced oil recovery techniques to boost production, but has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP from 46% at present to 9% by 2020 in accordance with Oman’s ninth five-year development plan. Tourism and gas-based industries are key components of the government's diversification strategy.
Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits — that had increased in the wake of the 2011 Arab Spring — have challenged the government's ability to effectively balance its budget in light of low export oil prices. In response, Omani officials imposed austerity measures to its gasoline and diesel subsidies in 2016, with further subsidy cuts planned for electricity and liquid petroleum gas. The spending cuts have faced some public opposition, which in 2017 prompted the Omani Government to announce a cap on fuel prices and a plan to provide 25,000 public-sector jobs for Omanis.
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Source
: CIA |
SUMMARY
Company
Name :
OCTAL SAOC FZC
Country
of Origin :
Oman
Legal
Form :
Omani Closed Joint Stock Company
Registration
Date : 22nd
November 2006
Commercial
Registration Number : 1/00899/5
Chamber
Membership Number : 475
Issued
Capital :
RO 150,000
Paid
up Capital :
RO 150,000
Total
Workforce :
250
Activities :
Manufacture of PET resins
Financial
Condition :
Good
Payments :
No Complaints
Operating
Trend :
Steady
COMPANY
NAME
OCTAL
SAOC FZC
ADDRESS
Registered
& Physical Address
Location : Salalah Free Zone, Main Street,
Auqad Area
PO
Box : 383
Town : Salalah 217
Country : Oman
Telephone : (968) 23217500 / 23217505 / 23219376
/ 23219223
Facsimile : (968) 23217506 / 23219375
Mobile : (968) 93292357
Email : info@octal.com / mmohamed@octal.com
Premises
Subject
operates from a large suite of offices and a factory that are rented and
located in the Salalah Free Zone.
Branch
Offices
Location Description
PO
Box: 3786 Office
premises
Ruwi
112
Muscat
Tel:
(968) 22030700
Fax:
(968) 22030799
Jawharat
Al Shati Complex Office
premises
Qurum
Area
Tel:
(968) 24942500
Fax:
(968) 24942599
KEY
PRINCIPALS
Name Position
Rashid
Bin Saif Bin Mohamed Al Mardoof Al Saadi Chairman
Nicholas P Barakat Chief
Executive Officer
Morris
Abu Zaid Operations
Manager
Anod
Figard Finance
Manager
Zayad
Malgoot Purchasing
Manager
Sean
Brown Logistics
Manager
Ron
Kreamer Technical
Manager
Prashant
Bollar Marketing
Manager
George Freigi Procurement
Manager
Mifras Mohamed Mifras Financial
Controller
LEGAL
FORM & OWNERS
Date
of Establishment : 22nd November
2006
History : Subject
started in 2006 under the name “Octal Petrochemicals FZ LLC”. However during
2015 it changed its name to “Octal
SAOC FZC”.
Legal
Form : Omani Closed Joint Stock Company
Commercial
Reg. No. : 1/00899/5
Chamber
Member No. : 475
Issued
Capital : RO 150,000
Paid
up Capital : RO 150,000
Name
of Shareholder (s) Percentage
Octal Holding & Co SAOG 99.9%
Rashid
Saif Mohamed Al Busaidi 0.1%
OPERATIONS
Activities: Engaged in the manufacture
of PET & DPET resins.
OCTAL
has completed a second phase of expansion in 2012, increasing capacity to
927,000 tons per annum, which will make it the world’s largest PET producer on
one site.
Import Countries: Japan and South Korea
International Suppliers:
Mitsui Corp Japan
Mitsubishi Corp Japan
Samsung Group South
Korea
Operating
Trend:
Steady
Subject
has a workforce of approximately 250 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
Riyal Omani (RO)
Year
Ending 31/12/16: Year Ending
31/12/17:
Total
sales RO
30,000,000 RO
31,300,000
Local
sources consider subject’s financial condition to be Good.
The
above financial figures are based on estimations by our local sources.
BANKERS
Bank
Muscat SAOG
Al
Nadha Street
PO
Box: 18537
Salalah
Tel:
(968) 23290244
Fax:
(968) 23292309
HSBC
Bank Middle East
Muttrah
Business District
PO
Box: 240, Ruwi 112
Muscat
Tel:
(968) 24700810 / 24799920 / 24799927
Fax:
(968) 24704241
PAYMENT
HISTORY
No
complaints regarding subject’s payments have been reported.
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GENERAL
COMMENTS
The
subject and its shareholders/owners have been searched in the following
databases; Office of Foreign Assets Control (OFAC), United Nations Security
Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List,
EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse
could be found on the exact names listed within the report.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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OMR |
1 |
INR 173.24 |
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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DIV |
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Report Prepared
by : |
KET |
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
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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.