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MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
QATAR FERTILISER
COMPANY SAQ (QAFCO) |
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Registered Office : |
Mesaieed
Industrial Area, P O Box 50001, Umm Said |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
29th June 1969 |
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Com. Reg. No.: |
29, Umm Said |
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Legal Form : |
Qatari Joint Stock Company |
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Line of Business : |
Engaged in the production of ammonia and urea |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
US$ 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : QATAR FERTILISER COMPANY SAQ (QAFCO)
Country of Origin : Qatar
Legal Form : Qatari Joint Stock Company
Registration Date : 29th June 1969
Commercial Registration Number : 29, Umm Said
Issued Capital : QR 250,000,000
Paid up Capital : QR 250,000,000
Total Workforce : 950
Line of Business : Production of ammonia and urea.
Financial Condition : Good
Payments : Prompt
Operating Trend : Steady
COMPANY NAME
QATAR FERTILISER
COMPANY SAQ (QAFCO)
ADDRESS
Registered & Physical Address
Location : Mesaieed Industrial Area
PO Box : 50001
Town : Umm Said
Country : Qatar
Telephone : (974) 4779779 / 4770252
Facsimile : (974) 4770347
Email : admin@qafco.com
Premises
Subject operates
from a large suite of offices and manufacturing facilities that are owned and
located in the Industrial Area of Umm Said.
Branch Office (s)
Location Description
·
Al Bida Tower,
2nd Floor Sales
Office
PO Box : 23111
Doha
Tel : (974) 4358686
Fax : (974) 4358484
Email : mktg@qafco.com
KEY PRINCIPALS
·
Abdullah
Hussain Salatt Chairman
·
Abdul Razzaq
Mohamed Al Siddiqi Managing
Director
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Farouk
Abdullah Naama Director
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Faisal Mohamed
Al Suwaidi Director
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Hussain Ali Al
Abdullah Director
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O.H.
Robberstad Director
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Ali M. Mubarak Finance
Manager
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G. Hegerland Production
Manager
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Ali Al Ghareeb Marketing
Manager
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Arne Hellenes Chief
Accountant
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Salman Al
Kuwari Personnel
Manager
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Hakam Gran Maintenance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 29th
June 1969
History : Qafco was incorporated in 1969 as a joint
venture between Qatar General
Petroleum Corp and a number of leading
multinational companies, in order to
utilize Qatar's abundant gas
resources for producing ammonia and urea
fertilizer. The manufacturing
plant was built at Umm Said with an initial capital of
QR 57 million which was later
raised to QR 92 million. The shares were held by
the following concerns :
1. Qatar General Petroleum Corp 70 %
2. Norsk Hydro AS 25 %
3. Power Gas Corp
3 %
4. Hambros Bank
2 %
In 1990, Power Gas Corp and Hambros Bank
withdrew from the company after
assigning all their shares to
Qatar General Petroleum Corp. Subsequently the
capital was increased to QR 100
million and the company was re-organised
under its current structure.
Qatar General Petroleum Corp has since transferred
its stake in the subject to its
subsidiary, Industries Qatar, whilst Norsk Hydro AS
has transferred its shares to
Yara Netherlands BV and Fertiliser Holdings AS.
Legal Form : Qatari Joint Stock Company
Commercial Reg. No. : 29, Umm Said
Issued Capital : QR 250,000,000
Paid up Capital : QR 250,000,000
Name of Shareholder (s) Percentage
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Industries
Qatar * 75%
West Bay
PO Box : 3212
Doha
Tel : (974) 4491491
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Yara Netherlands BV 15%
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Fertiliser
Holdings AS 10%
* Industries Qatar is a subsidiary of Qatar Petroleum (QP)
LINE OF BUSINESS
Operations : Engaged in the production of ammonia and urea, Qafco operates four plants – Qafco I, Qafco II, Qafco III, and Qafco IV, which began production in 1972, 1979, 1997, and 2004 respectively.
QAFCO inaugurated its first plant in 1973 with a design capacity of 900 tonnes of Ammonia and 1000 Tonnes of Urea daily. Through the years, QAFCO plants have been extensively developed and they are regularly modified and modernized to be compatible with the latest technology in order to ensure continuous supply of high quality products. Presently the QAFCO complex comprises three completely integrated trains and each train comprises two units, one for production of Ammonia and the other for Urea.
Subject was awarded the ISO9002 certificate on 29th May 1996 and the ISO14001 on the 30th December 1997.
In September 2004, Qafco signed a deal with Jordan Phosphate Mines Company (JPMC), under which it will supply 130,000 tonnes of ammonia to the Jordanian firm.
On 3rd February 2005, Qafco signed an a letter of intent (LOI) that paves the way for phase-5 growth at what has become one of the worlds largest fertilizer plants.
Production
Capacity : QAFCO I Ammonia
– 1,200 tonnes per day
Urea – 1,300 tonnes per day
QAFCO II Ammonia – 1,200 tonnes per day
Urea – 1,400 tonnes per day
QAFCO III Ammonia – 1,750 tonnes per day
Urea – 2,350 tonnes per day
QAFCO IV Ammonia – 2,000 tonnes per day
Urea – 3,200 tonnes per day
Import Countries
: The United States of America, Norway and Germany.
Export Countries : Subject’s
main markets are in South and East Asia, although the company now exports to
over 35 countries around the world, including India (53% of ammonia sales),
Australia (33% of ammonia sales), Argentina, Bangladesh, Burundi, Canada,
China, Egypt, Eritrea, Ethiopia, Greece, Indonesia, Iran, Italy, Japan, Jordan,
Kenya, Korea, La Reunion, Malaysia, Mexico, Mozambique, Myanmar, Nepal, Oman,
Pakistan, Philippines, Qatar, Singapore, Sri Lanka, South Africa, Sudan,
Taiwan, Tanzania, Thailand, Turkey, UAE, Uruguay, USA, Vietnam, Yemen, Zambia,
and Zimbabwe.
Operating Trend
: Steady
Subject has a
workforce of approximately 950 employees consisting of over 21 nationalities.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : Qatari
Riyals (QR)
Consolidated
Balance Sheet 31/12/2006 31/12/2005
ASSETS
Non-current
assets
Property, plant
& equipment 2,207,163,309 2,393,337,940
Other assets 74,705,907
4,661,192
Catalysts 12,442,075 13,978,914
Total Non-current assets 2,294,311,291 2,411,978,046
Current assets
Due from related
parties 295,500,835 324,344,712
Inventories 230,575,196 248,112,148
Accounts receivable 165,312,314 185,234,613
Other receivables
& prepayments 75,612,542 59,308,566
Cash and bank 2,265,469,140 1,880,944,424
Total Current assets 3,032,470,027 2,697,944,463
Total Assets 5,326,781,318 5,109,922,509
EQUITY &
LIABILITIES
Equity
Share Capital 250,000,000 759,600,000
Legal reserve 154,898,366 153,782,123
Retained earnings 4,455,601,392 3,138,312,206
Total equity
attributable to equity holders of the parent 4,860,499,758 4,051,694,329
Minority interest 15,985,097 15,636,369
Total equity 4,876,484,855 4,067,330,698
Non-current liabilities
Employees end of
service benefits 63,944,687 56,300,459
Current liabilities
Due to related
parties 245,651,432 228,789,168
Accounts payable
and accruals 140,700,344
177,519,144
Syndicated loan
current portion - 579,983,040
Total Current liabilities 386,351,776 986,291,352
Total shareholder’s equity and liabilities 5,326,781,318 5,109,922,509
Consolidated
Income Statement 31/12/2006 31/12/2005
Revenue 2,985,987,376 2,955,021,753
Cost of sales (1,068,001,427) (1,000,351,426)
Gross profit 1,917,985,949 1,954,670,327
Other income 130,682,438
81,505,845
2,048,668,387 2,036,176,172
Selling expenses (45,765,184) (50,279,353)
General &
administrative expenses
(182,676,933) (165,719,232)
Finance expenses (8,072,113) (31,947,071)
Net profit for the year 1,812,154,157 1,788,230,516
Attributable to
minority shareholders (3,348,728)
(3,025,596)
Attributable to
equity shareholders 1,808,805,429 1,785,204,920
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Qatar National
Bank
PO Box : 50050
Umm Said
Tel : (974) 4771529
Fax : (974) 4771062
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Doha Bank Ltd
Umm Said
PO Box : 50111
Doha
Tel : (974) 4771984
Fax : (974) 4770639
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HSBC Bank
Middle East
Abdulla Bin Jassim Street
PO Box : 57
Doha
Tel : (974) 423124
Fax : (974) 416353
PAYMENT HISTORY
Subject’s payment record
is reported to be met in a generally prompt manner.
Date of transaction November 1998 August 2001
Credit amount 75,000 13,000
Amount overdue 0 0
Payment terms 60
days 30
days
Payment Method Letters
of Credit Letters
of Credit
Paying record Prompt Prompt
Currency Pounds
Sterling US
Dollars
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000:
Qafco is the only
fertilizer producer in Qatar and specialises in the production of Ammonia and
Urea with a current annual production capacity of approximately 1.4 million
tonnes and 1.7 million tonnes respectively. It is the largest single fertilizer
producer in the Middle East and puts Qatar among the leading exporters of
Ammonia and Urea in the world, indeed when Qafco-4, a US$ 470 million project -
went onstream in 2004 it made Qafco the world's largest producer of urea.
Qafco has been one
of the most successful local / foreign industrial ventures in Qatar. It has recorded
substantial profits since 1980. Experts see this as a result of several
factors, including the local cost of feedstock, its US$ 0.36 million British
Thermal Units (BTUs), and the priority given to maintenance work.
Subject’s operating
history is clear and payment obligations are generally met in a prompt manner.
As such the company is deemed trustworthy for respecting its financial trade
commitments and the above credit figure is admissible.
Maximum suggested
credit figure: US$ 3,000,000
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)