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MIRA INFORM REPORT
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Report No. : |
510182 |
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Report Date : |
24.05.2018 |
IDENTIFICATION DETAILS
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Name : |
SOHAR ALUMINIUM COMPANY LLC |
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Registered Office : |
Sohar Aluminium Bldg, Industrial Area Street, Sohar Industrial Estate,
80 PC 327 Sohar |
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Country : |
Oman |
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Financials (as on) : |
31.12.2017
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Date of Incorporation : |
15.09.2004 |
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Com. Reg. No.: |
1/76671/6 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturers, smelters and distributors of
aluminium (primary aluminium). |
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No. of Employees : |
1,000 [2018] |
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 |
Acceptable Risk |
Business dealings permissible with
moderate 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 oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. In 2016, low global oil prices drove Oman’s budget deficit to $13.8 billion, or approximately 20% of GDP, but the budget deficit is estimated to have reduced to 12% of GDP in 2017 as Oman reduced government subsidies. As of January 2018, Oman has sufficient foreign assets to support its currency’s fixed exchange rates. It is issuing debt to cover its deficit.
Oman is using enhanced oil recovery techniques to boost production, but it 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. The key components of the government's diversification strategy are tourism, shipping and logistics, mining, manufacturing, and aquaculture.
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 made it impossible for the government to balance its budget in
light of current oil prices. In response, Omani officials imposed austerity measures on its gasoline and diesel subsidies in 2016.
These spending cuts have had only a moderate effect on the government’s budget,
which is projected to again face a deficit of $7.8 billion in 2018.
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Source
: CIA |
SUMMARY
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COMPANY NAME |
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ADDRESS |
Building |
Street |
Area |
PO Box |
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Sohar Aluminium Bldg |
Industrial Area Street |
Sohar Industrial Estate |
80 PC 327 Sohar |
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TEL/FAX |
Verified Phones: (+968) 2686
3000 / Fax: (+968) 2688
3001 |
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EMAIL/WEBSITE |
Email: info@sohar-aluminium.com / Website: www.sohar-aluminium.com |
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ACTIVITY |
NACE 2442 - Aluminium production; |
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PRINCIPAL |
Mulham Al Jarf |
Workforce |
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Chairman |
1,000 |
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LEGAL INFO |
Date Of Est. |
Reg. No. |
Legal Form |
Status |
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15/09/2004 |
1/76671/6 |
LLC |
Active |
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CAPITAL |
CURRENCY |
AMOUNT |
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USD |
500,000 |
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IDENTIFICATION
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CO. NAME |
Sohar Aluminium Company LLC |
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TRADEMARK |
SOHAR ALUMINIUM / SA |
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ALSO KNOWN NAME (S) |
Sohar Aluminium Company |
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BUILDING |
Sohar Aluminium Bldg |
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STREET |
Industrial Area Street |
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AREA |
Sohar Industrial Estate |
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POSTAL ADDRESS |
80 PC 327 Sohar |
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CITY |
Sohar |
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COUNTRY |
Sultanate
of Oman |
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TELEPHONE |
(+968)
2686 3000 / (+968) 2684
4278 / (+968) 2656
3206 / (+968) 2686
3441 / Mobiles (+968) 9921
1401 / (+968) 9925 5352 (Salim Al Amrani) |
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FAX |
(+968) 2688 3001 |
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VERIFIED EMAIL |
info@sohar-aluminium.com / hotline@soharaluminium.com |
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WEBSITE |
www.sohar-aluminium.com |
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BUSINESS HOURS (DURING RAMADAN) |
DAYS |
OFFICE HOURS |
BREAK TIME |
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Sun-Thu |
07:30-14:00 |
Without
Break |
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FORMER ADDRESS |
Until June
2008, subject's administrative offices was located at: Al Harthy
Complex PO Box 111 Qurum 118 Telephone:
(+968) 2457 3800 Fax : (+968) 2457 3801 Subject previously used PO Box 111,
Qurum 118. |
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SENIOR
PERSONNEL
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MANAGEMENT |
NAME |
POSITION |
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Mulham Al
Jarf |
Chairman of the Board |
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Board of Directors Kumail Said HE Saeed Hamad Al Dhaheri HE Abdulaziz Al Hemaidi Matt Liddy Management Said Mohammed Al Masoudi Jerry Van Alphen Ali Al Shamsi Dinesh Sangar Ahmed Al Kharusi Dana Geadah Theo Phillip Abdullah Al Saidi Othman Al Balushi Jason Moodley Syed Minhai Salim Al Amrani |
Member of the Board Member of the Board Member of the Board Member of the Board Chief Executive Officer Chief Financial Officer Operations General Manager Services and Maintenance General
Manager Human Resources and Corporate
Affairs General Manager Corporate Communications Manager Engineering Manager Finance Manager HR Manager Supply Chain Manager Procurement Specialist Commercial Finance Specialist |
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WORKFORCE |
NO. OF EMPLOYEES |
PERIOD |
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1,000 |
05.2018 |
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7,000 (Oman Oil Co. S.A.O.C. (OOC),
subject’s parent) |
01.2018 |
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FINANCIAL
SUMMARY
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NOTES |
Private
companies in Oman are not required to publish or disclose balance sheets.
However, the subject interviewed offered the following information : Revenue:
US DLRS
800,000,000 – 2017 (APPROX) Financial
year ends 31 December. The
following balance sheet as at 31 December 2017 applies to Abu Dhabi National
Energy Company (TAQA), subject’s parent company: 31/12/2017 31/12/2016 (in millions of AED) ASSETS Non-current
assets Property,
plant and equipment 71,610 73,512 Operating
financial assets 8,642 8,557 Intangible
assets 2,232 2,411 Investment
in associates 1,017 914 Investment
in joint venture 151 147 Advance
and loans to associates 702 702 Deferred
tax assets 5,462 6,119 Other
assets 582 241 90,398 92,603 Current
assets Inventories 2,785 2,800 Operating
financial assets 1,198 1,103 Accounts
receivable and prepayments 4,252 4,107 Cash and
short-term deposits 4,400 3,879 12,635 11,889 TOTAL
ASSETS 103,033 104,492 EQUITY
AND LIABILITIES Equity
attributable to equity
holders of the parent Issued
capital 6,066 6,066 Contributed
capital 25 25 Other
reserves 3,689 3,612 Accumulated
losses (2,707) (2,802) Foreign
currency translation reserve (1,928) (1,904) Cumulative
changes in fair value of
derivatives in cash
flow hedges (1,617) (2,026) 3,528 2,971 Non-controlling
interests 5,366 4,789 Loans
from non-controlling interest
shareholders in
subsidiaries 242 312 5,608 5,101 TOTAL
EQUITY 9,136 8,072 Non-current
liabilities Interest
bearing loans and borrowings 61,750 63,662 Islamic
loans 1,331 1,446 Deferred
tax liabilities 909 930 Asset
retirement Obligations 14,120 14,037 Advances
and loans from related
parties 266 273 Loans
from non-controlling interest
shareholders in subsidiaries 69 267 Other
liabilities 2,807 3,503 81,252 84,118 Current
liabilities Accounts
payable, accruals and
other liabilities 4,675 4,453 Interest
bearing loans and borrowings 6,964 6,882 Islamic
loans 180 170 Amounts
due to related parties 88 89 Income
tax payable 545 613 Bank
overdrafts 193 95 12,645 12,302 TOTAL
LIABILITIES 93,897 96,420 TOTAL
EQUITY AND LIABILITIES 103,033 104,492 CONSOLIDATED
INCOME STATEMENT Revenues Revenue
from oil and gas 4,951 4,234 Revenue
from electricity and
water 9,436 9,546 Fuel
revenue 1,676 1,672 Gas
storage revenue 218 290 Other
operating revenue 399 376 16,680 16,118 Cost of
sales Operating
expenses (7,216) (7,066) Depreciation,
depletion and
amortization (2,955) (6,339) Dry hole
expenses (22) (53) Provisions
for impairment – (22,020) (10,193) (35,478) GROSS
PROFIT (LOSS) 6,487 (19,360) Administrative
and other expenses (508) (580) Finance
costs (4,380) (4,636) Changes
in fair values of derivatives
and fair value hedges (84) (78) Net
foreign exchange gains 42 159 Gain on
derecognition of a subsidiary 86 – Share of
results of associates 96 56 Share of
results of a joint venture 29 21 Gain on
sale of land and oil and gas
assets 78 58 Finance
income 46 28 Other gains
(losses) 123 (10) PROFIT
(LOSS) BEFORE TAX 2,015 (24,342) Income
tax (expense) credit (972) 6,109 PROFIT
(LOSS) FOR THE YEAR 1,043 (18,233) Attributable
to: Equity
holders of the parent 160 (19,034) Non-controlling
interests 883 801 PROFIT
(LOSS) FOR THE YEAR 1,043 (18,233) The
following balance sheets as at 31/12/2016 applies to subject’s affiliate,
Oman Oil Marketing SAOG: 31/03/2016 31/03/2015 (in RO) Assets Non-Current assets Property, plant and equipment 38,144,176 36,157,102 Deferred tax assets 213,911 213,911
Investment in Joint venture - 431,125
Investment in Associates & Joint Venture 3,102,984 2,880,629
Long Term Deposits
7,000,000 – Total non-current assets 48,461,071 39,682,767 Current assets Inventories 5,319,674 6,369,000
Trade and other receivables 41,096,611 38,598,003
Cash and Cash equivalents 30,978,738 35,959,513
Total current assets
77,395,023 80,926,516 Total
assets 125,856,094
120,609,283 Equity and Liabilities Capital and reserves Share capital 6,450,000 6,450,000
Legal reserves
2,150,000 2,150,000 Retained earnings 49,504,305 41,681,510 Total equity 58,104,305 50,281,510
Non-current liabilities Term loan- non-current portion 5,297,603 1,204,971
Employees end of service benefits 223,972 303,925
Provision for site restoration and abandonment cost - 584,742
Total non-current liabilities 5,521,575 2,093,638
Current liabilities Trade and other payables 38,672,683 45,842,329 Term loan - current portion 22,801,759 21,321,714 Current tax liabilities 436,927 443,327 Environmental provision 318,845 626,765 Total current liabilities 62,230,214 68,234,135
Total liabilities
67,751,789 70,327,773 Total equity and liabilities 125,856,094 120,609,283 INCOME STATEMENT Revenue 92,496,772 87,013,293 Other income 486,887 411,019 92,983,659 87,424,312
Cost of goods sold (83,832,102)(78,622,703) Staff cost (1,677,315) (1,417,752)
Depreciation (1,135,994) (989,007) Operating & other expenses (3,732,060) (3,372,348)
Operating profit 2,606,188 3,022,502
Share of net Income /(loss) from Joint Venture (246,000) (66,421) Share of net Income from Equity Accounted Associates
23,491 31,293 Net Finance Income/ (Expense) 109,864 25,402
Profit before Income tax 2,493,543
3,012,776 Income Tax
(374,031) (371,995) Profit for the period 2,119,512 2,640,781 |
LEGAL
STATUS
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INCORPORATION |
15/09/2004 |
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REGISTRATION NO. |
C.R. NUMBER |
ISSUED BY |
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1/76671/6 (expiry date : 14 September 2018) |
Oman Chamber of Commerce and
Industry (OCCI) |
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OTHER REGISTRATION NO. |
40983 (Chamber of Commerce Membership) |
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AUTHORISED CAPITAL |
AMOUNT |
CURRENCY |
|
500,000 |
USD |
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PAID-UP CAPITAL |
AMOUNT |
CURRENCY |
|
500,000 |
USD |
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BUSINESS HISTORY |
The Subject was established in Oman on 15 September
2004 as a Limited Liability Company with the following shareholders: Oman Oil
Company S.A.O.C. (OOC), Abu Dhabi Water and Electricity Authority (ADWEA) and
Rio Tinto Alcan (fmly Alcan Inc). On 23 February 2005 Oman Oil Company
S.A.O.C. (OOC) signed a shareholders’ agreement with the Abu Dhabi Water and
Electricity Authority (ADWEA) and Rio Tinto Alcan (fmly Alcan Inc) in the
development of a proposed aluminium smelter project in Sohar. Subject started
partial operations in June 2008 and started full operations on 19 February
2009. In 2010 subject's shareholding structure changed to the present. |
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LEGAL FORM |
Limited
Liability Company |
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STATUS |
Active |
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SHAREHOLDERS |
NAME |
PERCENTAGE |
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1. Oman Oil Company S.A.O.C. (OOC) Qurum
Area, Opposite to Qurum, City
Centre PO Box
261 Muscat PC
118 Sultanate
of Oman
Telephone: (+968) 2457 3100 Fax : (+968) 2457 3101 Email:
info@oman-oil.com 2. Abu Dhabi National Energy Company
PJSC (TAQA) Al Maqam
Tower (Tower 3) Abu Dhabi
Global Market Square,
Al Maryah Island P.O. Box
55224 Abu Dhabi United
Arab Emirates
Telephone: (+971 2) 691 4900 Fax : (+971 2) 691 4666 3. Rio Tinto Alcan (fmly Alcan Inc) 1188
Sherbrooke Street West Montreal,
Quebec H3A 3G2 Canada
Telephone: (+1 514) 848 8000 Fax : (+1 514) 848 8162 Profile on Oman Oil Company S.A.O.C. (OOC): OOC is a commercial company wholly owned by the
Government of Oman. Established in 1996 to pursue investment opportunities in
the wider energy sector both inside and outside Oman, the Company plays an
important role in the Sultanate's efforts to diversify the economy as well as
fostering and building human capital. OOC’s portfolio consists of over 50
investments across 15 countries. Investments within Oman are managed through
four verticals: Oman Oil Company Exploration and Production L.L.C, Oman Oil
Facilities Development Company L.L.C, Oman Oil Duqm Development Company L.L.C
and Takamul Investment Company S.A.O.C, while international assets are
managed by the OOC International Investment Unit. Profile on Abu Dhabi National Energy Company
(TAQA) : TAQA was founded in 2005 with the objective of
becoming a global leader in the energy sector. TAQA are 51% owned by Abu
Dhabi Water and Electricity Authority (ADWEA) which is a government authority
providing long-term stability for the company. TAQA has a workforce of 2,800
drawn from 41 nationalities working in thirteen markets across the world. Profile on Rio
Tinto Alcan (fmly Alcan Inc): Alcan started in 1902 as Northern Aluminum
Company, the Canadian subsidiary of the Pittsburgh Reduction Company
(later Alcoa). It was renamed Aluminum Company of Canada in 1925 and separated
from Alcoa in 1928. In 2000, algroup became a subsidiary of Alcan Aluminium
Limited, which was renamed Alcan Inc in 2001. In 2003, it acquired among
other companies Pechiney of France. In late 2007, Alcan and Rio Tinto
Aluminium joined forces to create Rio Tinto Alcan, the aluminium industry’s
new global leader. |
40.00% 40.00% 20.00% |
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OPERATION
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BANKERS |
1. Bank Muscat (SOAG)
Al Burj Street, Muttrah Commercial District
1073
PO Box : 134
Ruwi 112
Telephone: (+968) 2470 3044
Fax : (+968) 2478 9886 2. Citibank N.A.
Bait al Falaj Street
P.O. Box 1994
Muscat
Telephone: (+968) 2479 5705
Fax : (+968) 2479 5705 |
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ACTIVITY CODE (NACE) |
NACE 2442 - Aluminium production; |
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LINE OF BUSINESS |
Manufacturers,
smelters and distributors of aluminium (primary aluminium). Subject is
a primary aluminium smelter and produces metal in three forms: - Ingots -
23.7kg - Sows -
700kg - Hot Metal
- available to local downstream partners to reduce energy consumption in
subsequent processing. Production
capacity: 360,000 metric ton per annum |
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IMPORT FROM |
Europe, Canada and USA. |
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EXPORT TO |
Worldwide.
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FACILITIES |
Owned premises
comprising administrative offices, a manufacturing unit (smelter) and a power
plant (producing 1000 MW of electricity) with storage facilities located at
the heading address as well as a port facility in Port of Sohar with a
capacity of up to 75,000 m.t. for receiving raw materials and for exporting
primary aluminium. The
smelter uses AP35 technology and includes a carbon plant and casting
facilities. |
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RELATED COMPANIES |
Associates Affiliates of Oman Oil Company
S.A.O.C. (OOC): 1. Oman Trading
International Europe B.V. Javastraat 6 bgg 3016CE Rotterdam the Netherlands 2. Oman
Trading International (Singapore) Pte Ltd
260 Orchard Rd #19-02 The Heeren Singapore 3. Oman
Trading International Shanghai China 4. Hass
Petroleum Group Nairobi Kenya 5. Takamul
Investment Company S.A.O.C 6. Oman
India Fertiliser Company (OMIFCO) 7. Salalah
Methanol Company (SMC) 8. Minerals Development Oman (MDO) 9. Innovation Development Oman
Holding (IDO) 10.Vale Oman Pelletizing Company
(Vale Oman) 11.Takatuf Oman Company (Takatuf) 12.OMAN TRADING INTERNATIONAL
LIMITED
United Arab Emirates 13.Oman
Oil Company Exploration and Production 14.Oman
Oil Facilities Development Company L.L.C. 15.Oman
Gas Company 16.Oman
Oil Marketing Company 17.Oman
Oil Facilities Development Company L.L.C. 18.Crude
Pipeline Project 19.Utilities
Company 20.Salalah
LPG 21.Musandam Power Company (MPC) 22.Oman Shipping Company 23.Oman Oil Duqm Development L.L.C 24.Oman Tank Terminal Company
(OTTCO) 25.Centralised Utilities Company
(CUC) 26.Duqm Refinery & Petrochemical
Industries
Company 27.Duqm Refinery & Petrochemical
Industries
Company 28.OXEA 29.Blackrock Metals company 30.MOL 31.Redes Energeticas Nacionais (REN) 32.Gulf
Energy Maritime (GEM) 33.Orient
Power Company Limited (OPCL) 34.Planta
de Regasification de Sagunto 35.Qingdao
Lidong Chemical Company Ltd. 36.GS
Electric, Power and Services (GS EPS) 37.Qingdao
Lixing Logistics 38.Bharat
Oman Refineries Limited 39.Compañia
Logística de Hidrocaburos S.A 40.Oman
Energy Limited Affiliates
of Abu Dhabi National Energy Company (TAQA) : 1. Abu
Dhabi Transmission and Despatch Company
Abu Dhabi Transmission and Despatch
Building Al Najda Street PO Box 173 Abu Dhabi United Arab Emirates Telephone: (+971 2) 416 4000 2. Abu
Dhabi Water and Electricity Company Abu Dhabi Water and Electricity Company Building Al Salam Street PO Box 51111 Abu Dhabi United Arab Emirates Telephone: (+971 2) 694 3333 Fax
: (+971 2) 642 5773 3. Al Ain
Distribution Company Al Ain Distribution Company Building Al Jimi Area PO Box 1065 Al Ain Abu Dhabi United Arab Emirates Telephone: (+971 3) 763 6000 Fax
: (+971 3) 762 9949 4. Al
Mirfa Power Company Al Mirfa Power and Desalination Complex Al Mirfa Area PO Box 32277 Abu Dhabi United Arab Emirates Telephone: (+971 2) 883 3044 Fax
: (+971 2) 883 3011 5.
Emirates SembCorp Water and Power Company
Fujairah 1 Independent Water and Power
Plant Ras Al Qidfa Area PO Box 3020 Fujairah United Arab Emirates Telephone: (+971 9) 208 8809 6. Abu Dhabi
Water and Electricity Authority Abu Dhabi Water and Electricity
Authority Building Al Najda Street PO Box 6120 Abu Dhabi United Arab Emirates Telephone: (+971 2) 694 3333 Fax
: (+971 2) 694 3192 Email
: pr@adwea.gov.ae Website
: www.adwea.ae 7.
Emirates National Grid Al Ittihad Building, 7th Floor, Office 701 Port Saeed Street Deira Area PO Box 99979 Dubai United Arab Emirates Telephone: (+971 4) 295 1444 Fax
: (+971 4) 295 3933 8. First
Energy Bank East Tower, 5th and 6th Floor Bahrain Financial Harbour Area PO Box 209 Manama
Bahrain Telephone: (+973) 1717 0000 Fax
: (+973) 1717 0170 9. Abu
Dhabi Distribution Company PSC Abu Dhabi Water and Electricity Authority Building Al Najda Street PO Box 219 / 6120 Abu Dhabi United Arab Emirates Telephone: (+971 2) 694 3333 Fax
: (+971 2) 694 3192 |
SPECIAL
REMARKS
|
|
|
INTERVIEWED |
Salim Al Amrani (Commercial Finance
Specialist). |
|
COMMENTS |
You enquired on: SOHAR ALUMINIUM.
Please note that this name applies to subject’s also known as name. Subject’s
registered name is as per heading. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 68.21 |
|
|
1 |
INR 91.43 |
|
Euro |
1 |
INR 80.24 |
|
OMR |
1 |
INR 177.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.