investing smart · 2015. 8. 27. · profitability index - pi internal rate of return - modified...

////////////// DENALY INTERNATIONAL TRADING

investing

tHe sMART WAYglobal energy

Denaly Нnternatнonal Trad-нng., also known as DНT,was founded нn 2005 as aPrнvatelyOwnedCompanysetupwнtмanнnнtнalfocuson Food Commodнtнes as

wмolesaler.Нn2011tмeCompanymovedtoconcentratemoreonGeneralCommodнtyTradнngнnordertocapнtalнюeontмeнrmanyMarket contacts, partнcularly нn tмe Oнl &Gasield.

DНTaBaмraнnнCompany,Number55810-1,wнtмRegнsteredOficesatПнngdomofBaм-raнn , Ofice no. 2 buнldнng.48A,A.DakмelRoadBlock321,Manama.

TмeCompanyworksнnsupplyнngOнl&GasProducts to meet a growнng demand andarenowsellersofalltypesofFuels,alsoof-ferнngafullClнentBrokerнngServнce.

Wнtм нncreasнng prнce pressure on almostallmaоorResourceSectorstмereмasneverbeen a greater need for relнable partnersassнstнngнntмeprocurementandsupplyofraw materials.

DenalyНnternatнonalTradнngorнgнnallycameнntotмнsSectorrepresentнngonlyaмandfulofkeyclнents.Fromtмatweareнntмepro-cesstorepresentsomeoftмeworld’slarg-estCorporatнonsonaglobalscalewнtмourcurrent & prospective partners.

OUR SUPPLIERSOursupplнersareMaоorCrudeOнlProcessorsandProductProducersandnotre-sellers.Ofcoursetмeprнcesdнfferforeacмproductrange;мoweverнtwнllbeapproprнateforeacмproductoffered.

Welcome To Denaly International Trading

1) TмeRussнanManagementCompanyworksonpartnersмнpcondнtнons wнtмFнnancнalOperatorfortмefollowнngоoнntactнvнtyon50%bases:

1) PurcмaseofcrudeoнlfromOJSC“SurgutNefteGas”.2) ProcesstмecrudeoнlattмereineryfactorнesofBelorussнa.3) Furtмersalesofready-madeportstoragepetroleumproducts.

TмeManagementCompanyworkswнtмfullandtransparentinancнalac-countancy.МavнngregнstratнonнnRussнa,нtpurcмasestмecrudeoнlfromOJSC“SurgutNefteGas”(Surgut),paystransportatнonfeesanddнrectstмecrudeoнltotмeprocessнngfactorнesнnBelarus.TмeManagementCompanyмasanagreementwнtмOJSC“SurgutNefteGas”,Belorussнanreinerнes(MoюyrandNovopolotsk)andcoordнnatнonwнtмByelorussнangovernmentwмнcмallowstoprocessandexporttмepetroleumandpetrocмemнstryproductsfromtмeterrнtory.TмeFнnancнalOperatorprovнdesinancнngfortмeoperatнons.Tмepaymentforalltмeoperatнonswнtмcrudeoнlsupplнerandotмersubcontrac-torsнseffectedнnrublesaswellastмedutнes.Tмeprнcefor1MTofcrudeoнl(SнberнanРнgмt)нs(1US$=30.5rubles):

11,600rubles=380.33US$/MT

There is an arrangement with the supplier that allocates in total 1,000,000 MT of crude oil per month in favor of Management

The Structure of

Reining Crude Oil to Petroleum ProductsFull cycle reinery

 • Growtмofнmport-exportoperatнonsнntмeBaltнcSearegнon;• Overallturnoverнncrease;• Arнsнngdemandforeffectнvetransportatнoncorrнdorsandotмermeansoftransportconnectнons;• 43%ofatotalamountofmarнtнmeнmport-exportcargoнnRussнagoesvнatмeBaltнcstatesseaports;• 50mнllнontonsofRussнancargoнsмandledbytмeseaportsнnРнtмuanнa,РatvнaandEstonнa.

TRANSPORTATНONSEGMENTONTМEBAРTНCSEA

 JSC “KRONIMPEXPORT” SEAPORT TERMINAL LOCATION PLANCмaracterнstнcfeaturesoftмelocatнon:

• Favorablenaturalcondнtнons;• Advantageousgeograpмнcalposнtнon;• ArelatнveproxнmнtytoWesternandNortмern EuropeancountrнesaswellastoRussнanнndustrнal centers,alнnkwнtмCentral,Soutм-EasternAsнanand EasterncountrнesvнaTrans-Sнberнanraнlway;• Year-roundoperabнlнty;• Deepwatersюoneandasмortaccessduct;• Terrнtorнalavaнlabнlнty.

PROJECT OBJECTIVES• Arrangementofanewlowlane;• Нmprovementofнmport-exportaffectнvнty;• Competнtнverecoveryнntмesystemofнnternatнonallowlanes;• Tмeнncreaseofavaнlablefacнlнtнesforнmport-exportoperatнons;• Reductнonoftransportatнoncosts;• AdнrectlowlanetoEuropefromtмeRussнanmaнnland.

Characteristic Features Of The TerminalTмeSeaportTermнnal(SPT)lotнslocatedalongtмeGulfofFнnlandcoastalstrнp.НntмeNortм-Westнtborderstмeexнst-нngseaporttermнnal“Moby-Dнck”.Tмedeptмsнntмeoffsмorestrнparoundconstructнonlotdнfferfrom-1to0meters.Tмelotwнllbecreatedbymeansofмydraulнcandlandillнng.TмeTermнnalнsdesнgnatedfortransмнpmentofperнsмablecargo(fruнtage,meat,andisм)delнveredbyrefrнgeratedcargosмнpsandalsotoworkRo-Rovessels(automobнleferrнes).Tмeestнmatedannualfreнgмttraficoftмefuturetermнnalнsupto2.5mнllнontons.Duetotмorougмtecмnologнcalestнmatesнtнsplannedtobuнldtмreebertмsof616metersoftotalmoorнnglнnetoworkgeneralcargo;tмreewareмousesof3000sq.mнntotal,twoofwмнcмarerefrнgerated;toнstalltransмнpmentandlнftнngequнpment,toarrangeoperatнonalwaterareaand1220meteraccessduct;tosetabordercontrolcмeckpoнntandseveralotмerstructurestoprovнdeafullsetofoperatнonstoworkcargo.Tмetermнnalwнlloccupytмeterrнtoryof16мectares.Tмesaнlнngtoandfromtмebertмswнllbeexecutedvнatмeexнstнngaccessduct.Tмeductrequнrestмewнdenнngupto70metersandalsotмedeepenнngtotмedesнgnreferencemarkofmнnus11.5meters.TмeDRMattмebottomofbertмlнnesмouldreacмmнnus11.5meters.Tмetotalvolumeofdredgнngнs2400tмousandcubнcmeters.Tмevolumeofilled-upgroundнs667tмousandcubнcmeters.Tмeoperatнonalwaterareatнe-upoperatнonslнnkedtotмeturnнngbasнnwнllbeequalto2Рc=350meters.Cargowнllbedelнveredtotмetermнnalbyautomotнvetransport.ToProоectservнceroadswнllbeconnectedtotмeOSRR.

Business-Plan BriefTмepresentbusнness-plandetermнnestмeProоectнnvestmentpotentнalforpartнcнpants,loanproceedsandforleasнngoperatнonpurposes.

“Taxenvнronment”correspondstotмeoneexнstнngнnSaнntPetersburgareadurнngнnнtнalstageoftмeProоect. “Productнonprogram”and“Prнcedetermнnatнon”нscalculatedontмebasнsofmarketнnganalysнsandonresultнngiguresofstatнstнcaldataprocessнngresultsofsнmнlarenterprнsesactнvнtнes(SeeFeasнbнlнtyStudy).НtнsascertaнnedtмattмeturnoverнncreasevнaBaltнcseaportsмasastablecмaracterandper-sнstency.TмenewtermнnalontмeНsleofПotlнnwнllbesecuredwнtмworkнngorders.Tмecompetнvenesslevelнnvestнgatнonsмavebeencarrнedoutalsotodetermнnetмeprнcepolнcyfortмeservнces. Tмebusнness-planenclosesare-calculatedнnvestmentplan(нnvestmenteficнencyнndнcators)нnaccordancewнtм“RecommendatнonsofMнnнstryofEconomнcDevelopmentandTradeofRussнanFederatнon”(See“DelatorsandНndexesforManufacturerPrнces”нnTмeBulletнnofPrнcнngandEstнmateRateSettнngs,August,2009)andalsoнnaccordancewнtмrelevantнnlatнonaryexpec-tatнonsfortмeProоectperнod. Proоectinancнngstнpulates642mнllнonRRofнnternalfunds,4.47bнllнonRRofcredнtresourceandoutitleasнng.

НnvestmenteficнencyнndнcatorsconirmtмerecoupmentoftмeProоectdurнngtмesettle-mentperнod.The Project sensitivity estнmatнonнndнcatesasuficнentproоectsteadн-ness.

Investment eficiency indicators: RR Euro

Discount rate Payback period - РВ months 87 86 Discounted payback period – months 107 Average rate of return - Net present value - NPV 770 Profitability index - PI Internal rate of return - Modified internal rate of return -

Leasing

Description of leasing loans

Title Date Sum Period

Outfit 01.07.2010 24 613 60 months

Title Characteristics

Depreciation period months Cost of credit resources Commission oan servicing etc. Putting on balance as equipment th month Insurance cost Assets redeemed for residual cost on completion of the Agreement

Payback period, months Average operation ratio, %

IMPLEMENTATION MILESTONES• Рandillнng(startнngpoнnt) -3-rdquarterof2011• Constructнonworksstart -4-tмquarterof2011• Termнnalexploнtatнonlauncм -4-tмquarterof2012

Summary• TмeнmplementatнonofTermнnalwнllнncreasetмefreнgмtturnoverofSaнntPetersburg“Bнg”Seaportby2.5mнllнonannualtons;• JSC“Пronнmpexport”TermнnalwнlladdfreнgмtмaulнngfacнlнtнestoнntermodalEast-WestcorrнdorfortмefurtмergoodssмнpmentfromCмнna,ПoreanRepublнc,Japan,etc.toEuropeanUnнoncountrнes;• Pнlotagewнllbesмortenedby27kmнncomparнsontotмeexнstнngroutetoSaнntPetersburgbertмs.Нtwнllsaveupto8pнlotageмourstмereandback.Tмeroutesмortenнngwнllalsosuficнentlyreduceexpendнturesforнcebreakнngнntмewнnterperнod;• TмeTermнnalнnstallatнonswнllbeplacedbeмнndtмelood-protec-tнvedamtмusensurнngvesselworkspractнcallyatanyweatмercondнtнons;• TмeProоectprelнmнnaryestнmatesdrawaclearconclusнonofнtsexpedнence;• TмeProоectbearsasuficнentsocнalнmportanceaswell.Нtwнllcre-atemoretмan900оobsнntмeexcessнveeficнentpopulatнonregнon.

STATE APPROACH

• PresнdentнalDecree#1513“OnMeasurestoRevнveMercмantFleetнnRussнanFederatнon”,December3,1992• PresнdentнalDecree#554“OnMeasurestoSupportTransнtTмrougмCoastalWatersoftмeGulfofFнnland”,June06,1997;• RFGovernmentOrder#728-p“ConcernнngAcceleratнonofTransportNetworkSystemsнntмeGulfofFнnlandArea”,Aprнl28,1993;• RFGovernmentOrder#302-p“ConcernнngDevelopmentofSaнntPetersburgTransportNodalPoнnt(tмeBнgSaнntPetersburgSea-portontмeGulfofFнnlandCoastalTerrнtorнes.AsubоecttoGeneralSaнntPetersburgandРenнngradOblastPlannнngScмeme”,21.03.1998;• SaнntPetersburgGovernmentRegulatнon#48“ConcernнngtмeAnalysнsofUtнlнюatнonofSaнntPetersburgBasнnandtмeGulfofFнnlandCoastalTerrнtorнeswнtмнnSaнntPetersburgCнtyРнmнts”,19.10.1997;• SaнntPetersburgGovernmentRegulatнon#2“ConcernнngGen-eralPlannнngScмemeofПronsмtadt”,10.01.2001;• SaнntPetersburgGovernmentRegulatнon#1“ConcernнngGen-eralPlannнngScмemeofSaнntPetersburg”,08.01.2002;• “ProоectStatement”approvedon17.01.2008bytмeFederalAgencyforSeaandRнverTransportofMнnнstryofTransportoftмeRus-sнanFederatнon;• Program“ConcernнngConceptнonofDevelopmentofPerspec-tнveRegнons(Outposts)oftмeBнgSeaportofSaнntPetersburg”ap-provedon20.01.2009bytмeGovernmentofSaнntPetersburg.

LIST OF PROCEDURE CONCURRENCES AND RESOLUTIONS1. FederalAgencyforSeaandRнverTransportofMнnнstryofTransportoftмeRussнanFederatнonРetter№ -29/5826of04.09.20062. ПronsмtadtDнstrнctAdmнnнstratнonResolutнonРetter№01-31/1311/06-0-1,26.05.20063. DнrectorateofStateProcurerofSeaTransportDevelopmentProgramsРetter№ З-21 /06 т20и 2006г.4. Nortм-WestFederalDнstrнctRosprнrodnadюorResolutнonРetter№03-13/1526,29.05.20065. SaнntPetersburgDнrectorateofCнvнlDefenseandEmergencySнtuatнonsCenterOpнnнonРetter№2189А,18.04.20066. SaнntPetersburgМygнeneandEpнdemнologyCenterOpнnнonРetter№78.01.07.000.Т.5871,06.09.20067. TмeNeva-РadogaBasнnWaterAdmнnнstratнonOpнnнonРetter№ 6-17-4752,01.09.20068. FederalVeterнnaryandPмytosanнtaryНnspectнonOpнnнonРetter№470- ,27.06.20069. ProceedнngsofpublнcdнscussнonsofpreconstructнonworksoverZAO“Пronнmpexport”SPCProоect,03.07.200610. DнrectorateofStateProcurerofSeaTransportDevelopmentProgramsРetter№ З-4.11/882,23.11.200611. FederalFнsмeryAgencyConclusнon№05-1121 т11.09.2006г.12. Рetter№1-1-3493/961,02.03.2007,MunнcнpalEngнneerнng&ArcмнtectureCommнttee13. Рetter№1-4-4541/1373,016.03.2007,MunнcнpalEngнneerнng&ArcмнtectureCommнttee14. Summaryexpertconclusнon№4/5559/07,04.05.2007,StateDнrectorate«Нnvestmentmanagement»15. “ПronsмtadtDнstrнctAdmнnнstratнon”Рetter№01-29/818/07-2-1,03.04.200716. “SaнntPetersburgРandResourcesCommнttee”Рetter№23686/Кwнtмtмeplan,04.04.200717. “CнtyPropertyCommнttee”Рetter№8806-13,18.04.200718. FederalRegнstryOficeРetter№2-5299,16.04.200719. “StateМнstorнcalMonumentControl&PreservatнonCommнttee”Рetter№11-250,29.03.200720. “ConsumerSupervнsнonCommнttee”Sanнtary-and-epнdemнologнcOpнnнonРetter№78.01.03.000.Т.001405.05.07,14.05.200721. “SaнntPetersburgCommнtteeforEconomнcDevelopment”ConcordanceРetter№06/10273,18.09.200622. “FederalBuнldнng,МousнngandCommunalServнcesAgency”ConcordanceРetter№А -675/05,02.03.200523. “Рenмydroproоect”НnstнtutнonConcordanceРetter№33-03-122,26.11.2004

PROPOSITIONJSC“Пronнmpexport”нscurrentlydevelopнngnecessarypaperworkfor“TмeProоect”stage.Нtoperatesontмebasнsoftмelнstedabovelettersandconclusнons.By01.02.2010tмepaperworkнsнn70%readнness.CurrentexpendнturesfortмeProоectdevelopmentamount4.5mнllнonUSD.SaнntPetersburgGovernorнssuedtмeРetterofSupport№07-108/774,20.10.2009fortмeProоectandalsoapplнedtotмe“Vnesмekonombank”(VEB)AdmнnнstratнonwнtмarequesttopartнcнpateнntмeProоectinancнng.Attмemomenttмepreparatнonproceduretoopenacredнtline is in process.Accordнngtoмands-onexperнence“Vnesмekonombank”grantsaloanfora10-yearperнodнncasetмeProоectpartypossesses10-15%oftмetotalamountofnecessaryнnvest-ments.OurproposнtнonforapotentнalProоectНnvestorнsasfollows:

• Нnvestorpurcмases10%sмareнnJSC“Пronнmpexport”for5mнllнonUSD.Tмereceнvedfundswнllbeallocatedforinancнngoftмerestoftмeproоectworks,reconcнlнatнonandexpertнseproceduresнntмeStateoversнgмtbodнes;• Нnvestorreserves20mнllнonUSDfortмeoptнontopurcмase26%sмareнnJSC“Пronнmpexport”.Tмesell-buytransactнonwнllbeмandledafterposнtнvedecнsнonof“Vnesмe-konombank”CredнtCommнttee.Tмereceнvedmeanswнllbeнnvestedнntoconstructнonsworks;• Нf“Vnesмekonombank”takesaposнtнvedecнsнontoallocate150mнllнonUSDtмeНnvestor’ssмarepackage(36%)capнtalнюatнonwнllbe(150mнl.+20mнl.+5mнl.)/100%*36%=63mнllнonUSD.• Нf“Vnesмekonombank”decнdestobecomea20-30%sмareмolderoftмeProоecttмeallocatнonofsмaresmaylookasfollows–“Vnesмekonombank”(20-30%),Нnvestor(26-36%),ProоectOrнgнnator–tмerestoftмeavaнlablesмares(Нntмнscasetмelesscredнtloadsмouldbetakenнntoaccount).

CONCLUSION1.TмeresultsofmarketнngresearcмesixedнnanumberoftмeStatedocuments(нncludнngtмeFederalprogram“Tмestrategyoftransportsystemdevelop-mentoftмeRussнanFederatнontнlltмeyearof2030”)sмowaneedofarrangнngofnewseaportcapacнtнesontмeBaltнcSeatocovertмeнncreasнngcargoturnover.Tмeservнcнngoftradнtнonallyнmportedagrнculturalgoodsandprovнsнonsнsofpartнcularнmportance.2.Нntмesecнrcumstances“Пronнmpexport”нnнtнatнvetobuнldaseaportontмeПotlнnНslandtoservнcecargotraficнsexpedнentandactual.

3. TмebusнnessplanoftмeProоectwasmadeuponbasнsofCJSC“GTMorstroy”proоectworktosubstantнatetмereasonsfortмebuнldнngofaseaport complexagaнnstbankandleasнngcredнts.4. TмeeconomнceficнencyнndнcatorsoftмeProоectarefavorableandguaranteeuncondнtнonalreturnofborrowedassets.

Investment eficiency indicators:

Fruit & vegetables – 500 Thousand MT per year

Meat & fish – 100 Thousand MT per year

Cargo in rigs – 680 Thousand MT per year

Containers – 100 Thousand TEU per year

General cargo – 1250 Thousand MT per year

Indicator Ruble Euro

Discount rate, % 12,00 7,00

Payback period, months 75 75

Discounted payback period, months 87 81

Average rate of return, % 31,68 33,46

Net present value 2 891 757 703 144 699 619

Profitability index 1,65 2,21

Internal rate of return, % 23,94 25,19

Modifies internal rate of return, % 17,98 16,25

Drawing up and reimbursement of credit

5.TмeProоectнscмaracterнюedbyaмнgмsocнal,economнcandbudgetaryefi-cнency.TмusнtmayformtмebasнsfortмeposнtнvedecнsнontoinancetмeмydraulнcstructuresconstructнonworksoftмestateownersмнpattмeexpenseoftмeFederalbudget.6.RнskanalysнsoftмeProоectalsocon-irmsнtsмнgмeficнencyfromtмepoнntofvнewmargнnsafetydurнngexploнtatнon.

Formoreнnformatнonpleasecontact:AмmedAlПмanCEODenalyНnternatнonalTradнngMobнle:+97336162330OficeTel:+97317716893OficeFax:+97317716892Emaнl:eravestgroupДgmaнl.comdenalybaмДgmaнl.com