Buran Operadora

Presentation of the company

Created in 2015, Buran Operadora SL. is active in the Fuel sector. The company, managed by Jose Santos Valverde, has 10 employees and is based in Madrid.

Mr. Jose Santos Valverde, managing director, has overall 15 years of professional experience in the sector.

The company’s main activities are:

• Wholesale trade of fuels 
• Commercialization of fuel in their own petrol stations 
• Since 2019, the Group has added 1 new business lines:
• Storage of fuel in their own tanks

The company works with a diversified client base of more than 400 clients.

Project Description

The company requests a loan of 2.000.000 € over 48 months to finance the development in the commercialization of fuel among retailers: including the acquisition of 4 petrol stations, refurbishment works, promotion and additional staff. This project will be realised this quarter.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

The amount offered on the platform is limited to 980.000€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 311 267 047 € in 2018 and an experienced team, the company has a good track record combined with an acceptable operating margin.

The increase of turnover is related to the increase of the volume sold. The forecast is based on the performance in 2018, where the company reported a 311 267 047€ turnover and a pre-tax profit of 1 314 605€, and considers the increase of the activity due to the development of two business lines: commercialization in own petrol stations and the storage of fuel activity.

The borrower has a solid repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,5 and a good financial structure, with a forecast net debt / ebitda ratio of 4,72 and a net debt / shareholder equity of 164%.

The analysis of the project leads to a credit rating of B and a 6,25% annual interest rate.

*The multiple of FCCR at 1,5 means that the company has a safety margin of 50% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

• Good historical performance based on diversified client base.
• Excellent repayment ability with a forecasted FCCR of 1. 50.
• High level of expertise and solid financial planning.

Points of caution:

• Strong competition in the market