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EPC Oil and Gas Investment Opportunity

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Investment Opportunity, EPC Contractor, Oil and Gas Sector, Saudi Arabia, SABIC, ARAMCO, Contractor, Electromechanical,

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EPC Oil and Gas Investment Opportunity

  1. 1. DESERT FLOWER BEAUTIFUL INVESTMENT OPPORTUNITY
  2. 2. This is and Investment Opportunity to Own Majority Stake in E.P.C. Contractor in Saudi Arabia
  3. 3. THE COMPANY OVERVIEW 20 Years old Company. Continuously Profit Making. Fully Debt Free Registered with ARAMCO and SABIC Also working in Private Sector Very Good Asset Base Long Track Record of Success 01 02 03 04 05 06 07
  4. 4. MARKET OVERVIEW World Energy Consumption to Increase 56% by 2040 Led by Asia. China will use 220 quadrillion Btu, up from 101 quadrillion. Fossil fuels, including oil, natural gas and coal, will supply almost 80 percent of world energy through 2040. Natural gas use will grow 64 percent, faster than any other fossil fuel. Consumption will be 185 trillion cubic feet in 2040, up from 113 trillion in 2010 Net electricity generation will almost double, rising to 39 trillion kilowatt-hours from 20.2 trillion. Global oil demand will increase by 6.1 million barrels a day, or 6.7 percent, to 96.7 million a day by 2018 as the economic recovery gathers pace China poised to become the world’s largest net oil importer
  5. 5. MARKET OVERVIEW Japan Tsunami has changed Japan’s energy horizon, before this almost 30% of the energy is produced by Nuclear Reactors, but with all Nuclear plants shut , this is substituted by Oil and Gas. Germany is another country its Nuclear Energy and soon all plants will be shut. India, Japan, South Korea and Germany will drive the demand growth. The slow growth in USA and Europe will slow down the demand growth. Slowing economies of emerging market will have substantial impact on demand growth. Demand will also be impacted by eroding currencies of emerging countries.
  6. 6. THE MARKET KSA is worlds biggest producer of oil. Presently KSA is producing almost 10 million barrels a day. It has produced 10.5 million barrels everyday last year. The economy is on fast growth track. It is one of the best performing economy over the last five years of financial crisis. The Saudi Arabia is pushing the growth strong. Downstream projects has very good growth and potential is very high.
  7. 7. Income Statement 2008 2009 2010 2011 2012 2013 Income fromoperations 31,181,242 27,107,196 26,913,601 28,733,526 28,313,654 42,862,324 Cost of Operations (25,674,769) (22,642,663) (23,011,351) (24,301,932) (24,144,411) (32,974,208) Gross of Profit 5,506,473 4,464,533 3,902,250 4,431,594 4,169,243 9,888,116 Gross of Profit Margin 18% 16% 14% 15% 15% 23% Staff Cost General and admin. Expenses (2,008,481) (1,972,085) (1,882,118) (2,148,304) (2,240,903) (3,758,303) Depreciation (928,300) (1,183,353) (1,384,109) (1,370,700) (1,136,917) (1,218,749) Depreciation Bad Debts Total Expenses (2,936,781) (3,155,438) (3,266,227) (3,519,004) (3,377,820) (4,977,052) Operating (Losses)/Profit 2,569,692 1,309,095 636,023 912,590 791,423 4,911,064 Operating (Losses)/Profit Margin 8% 5% 2% 3% 3% 11% Financing Charges Murabah Ijara Financing Financial Charges Bank 0 (44,669) (56,451) (61,358) (12,331) (33,658) Cost of Financing 0 (44,669) (56,451) (61,358) (12,331) (33,658) Profit before contribution to KFAS & Zakat 2,569,692 1,264,426 579,572 851,232 779,092 4,877,406 Contribution To KFAS Zakat Other Income 46,691 33,358 33,773 84,102 164,179 0 Net Profit for the year 2,616,383 1,297,784 613,345 935,334 943,271 4,877,406 Net Net Profit for the year Margin 8.39% 4.79% 2.28% 3.26% 3.33% 11.38%
  8. 8. Balance Sheet 2008 2009 2010 2011 2012 2013 Non - Current Assets Property & Equipment's 5,720,048 6,293,338 5,505,548 4,609,283 3,592,611 4,500,000 Goodwill Investment in unconsolidated subsidiary Property Total non-current assets 5,720,048 6,293,338 5,505,548 4,609,283 3,592,611 4,500,000 Current assets Inventory 164,070 495,439 874,730 1,981,039 1,456,482 1,600,000 Account receivables and other assets 5,284,093 6,269,054 6,398,487 8,993,449 10,374,800 12,000,000 Cash and cash equivalents 2,691,100 1,347,650 996,747 1,368,794 515,608 750,000 Prepayments and other receivables 100,000 100,000 52,439 165,802 52,439 100,000 Due fromrelated parties 199,516 263,727 560,394 371,446 418,377 600,000 Other 0 0 0 0 670,299 234,087 Total Current assets 8,438,779 8,475,870 8,882,797 12,880,530 13,488,005 15,284,087 Total Asset 14,158,827 14,769,208 14,388,345 17,489,813 17,080,616 19,784,087
  9. 9. www.milestonevi zia@milestonevision.com 9 Balance Sheet 2008 2009 2010 2011 2012 2013 Equity and liabilities #REF! Share capital 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Statutory Reserve 597,608 597,608 597,608 597,608 597,608 597,608 Other components of equity - - - - - - Retained Earnings 5,694,505 6,739,951 7,148,107 7,916,260 8,555,729 10,000,000 Partners' current accounts (796,135) (1,071,135) (946,135) 538,827 603,827 650,000 Total Equity 6,495,978 7,266,424 7,799,580 10,052,695 10,757,164 12,247,608 Non-Current liabilities Long termloans - - - - - - Provision of staff indemnity 371,819 549,856 746,639 767,303 828,582 1,000,000 371,819 549,856 746,639 767,303 828,582 1,000,000 Current liabilities Due to Bank - - - 857,795 16,228 300,000 Payables and other credits 5,738,127 5,598,365 4,914,947 4,769,838 4,429,001 5,500,000 Other Payables 1,043,222 1,135,331 777,794 807,221 815,162 502,000 Due to Related Parties 509,681 219,232 149,385 234,961 234,479 234,479 Total Current liabilities 7,291,030 6,952,928 5,842,126 6,669,815 5,494,870 6,536,479 Total liabilities 7,662,849 7,502,784 6,588,765 7,437,118 6,323,452 7,536,479 Total Equity and Liabilities 14,158,827 14,769,208 14,388,345 17,489,813 17,080,616 19,784,087
  10. 10. The Opportunity • The company is available for majority ownership through capital increase or equity sale. • It has very good assets ( some of not on balance sheet) • It is fully debt free. ( No bank loan or facilities)
  11. 11. THANK YOU

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